GE Capital has released its first "˜European SME Capex Barometer´, detailing the results of a survey on SME´s business sentiment and capital expenditure across Europe´s four biggest economies.
The research indicates German SMEs intend to invest, on average, €120,361 to acquire new equipment over the next 12 months, significantly more than small and medium enterprises in France (€100,181), Italy (€89,479) and the United Kingdom (€85,614).
The full report is available for download on www.gecapital.eu.
"˜In a challenging environment for businesses, this research attempts to get a pulse on how SMEs, the backbone of the economy, perceive the markets in which they operate, assess their willingness to invest and identify the key motivators behind their capital expenditure,´ said Elmar Lukas, Managing Director of GE Capital´s Pan-European Equipment Financing operations.
According to the report, SMEs in Germany are more optimistic than in the other three countries surveyed, with UK small and medium enterprises being the most cautious.
The most common reason for SMEs across Europe to make capex investments is to upgrade equipment in order to enhance efficiency and productivity. More than 31% of all planned investments are to be made for this reason.
In all markets leasing and vendor finance are the most popular alternative to using the company´s capital, being the preferred funding method for about 26% of investments.
The "˜European SME Capex Barometer´ is based on 1,000 interviews with SME owners, executives and decision makers in France, Germany, Italy and the United Kingdom.
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About GE Capital
GE Capital EMEA is one of the region´s largest commercial and consumer lenders with over $80 billion in assets, 19,000 employees, more than five million customers and operations in 19 countries.
For businesses, particularly small and mid-market firms, GE Capital EMEA provides a range of specialised financial products and services including receivables financing, distribution finance, acquisition finance and commercial loans and leases to support customer needs. And, thanks to GE´s 130+ years´ experience in energy, aviation, healthcare and media industries, we know how to make business assets work harder. In addition, GE Capital EMEA serves millions of consumers through its award-winning retail banks in the Czech Republic, Hungary, Nordics, Poland and Switzerland.
GE Capital EMEA also includes Mubadala GE Capital PJSC, the commercial finance joint venture between GE and Mubadala, based in Abu Dhabi, which is focused on commercial investments around the world with a particular emphasis on the Middle East.
