For almost 6 in 10 companies , operating costs were a constraining factor for business operations in the period from 1 July 2021 to 1 July 2022. These were more than a year earlier, and these companies were also more likely to say they needed external financing. Within SMEs as a whole, the number of companies in need of financing decreased slightly. This is according to the Financing Monitor, which is commissioned by the Ministry of Economic Affairs and Climate, produced annually by CBS.

For this study, a survey was conducted among companies in the business economy with two or more employees.

More businesses hampered by high costs

In SMEs , by 2022, the number of firms finding business costs prohibitive, increased by 18 per cent compared to 2021. Among medium-sized firms , the percentage increased from 43 to 68. Among all size classes, the proportion of firms that perceive current operating costs as prohibitive increased sharply. Among SMEs that perceive current operating costs as prohibitive, 22 per cent have external financing needs. For companies that do not perceive high costs as prohibitive, this is 6 per cent .

Start-up and expansion most mentioned funding target

The use of external funding can be summarised in three main purposes: start-up and expansion, continuation and new business. Companies may need third-party financing for multiple purposes. 78 per cent of companies with financing needs needed the money for start-up and expansion. For 69 per cent, continuation was the main goal and for 58 per cent new activities. Under all main goals, there are several sub-goals. The financing goal most common under start-up and expansion is business expansion. In the case of the main objective of continuation, the most common sub-objective is financing for inventory and working capital at 43 per cent. Finally, in the case of new business, the most common sub-goal is financing for personnel costs (21 per cent).

Expected financing needs of small and medium-sized businesses increased

With more than 2 in 10 SMEs expecting to need external financing , the need was highest in these size classes in 2022 . A year earlier, the expected financing need of these companies was relatively very small. Among large- and micro-enterprises , the expected financing need decreased. The same was true for total SMEs in 2022, with a decrease of 1 per cent compared to 2021.

Source: CBS