Only a third of micro, small and medium-sized firms plan investments

Slightly over a third of micro, small and medium-sized enterprises plan to implement investment projects within the next 12 months, according to a Bank Pekao report. This is much less compared to 43% in 2021. "We are seeing a further decline in investment in the micro, small and medium-sized enterprises sector due to cost cuts and uncertainty,” the report said.

Medium-sized companies are the least willing to invest. Only 32.5% declare such plans in the coming year compared to 60.5% in 2021. Dominika Byrska, a co-author of the report, noted that investments suffer first when the companies seek to cut costs and rescue financial liquidity.

Small companies will be the most active in investment - such activities are declared by 44.4% of them, and 33.5% of micro companies intend to invest. Among the industries, trade companies (30.7%) and service companies (33.8%) are the least willing to invest, and manufacturing companies (37%) and construction companies (38.2%) are more active.

Own funds remain the dominant source of investment financing. The percentage of companies that used external sources of financing, such as loans, leasing, or subsidies in the last 12 months, has decreased compared to 2020, the report noted.

(ISB News)