Half of SMEs estimate that their businesses will be affected by inflation, according to a Hiscox study

MADRID, 27 Sep. (EUROPA PRESS) -

50.5% of small and medium-sized enterprises (SMEs) estimate that their businesses will be "very or quite" affected by inflation, especially among those dedicated to the manufacturing industry (84.3%) and construction (71 .1%), according to the report of the international insurer Hiscox specialized in companies commissioned to the consultancy firm KPMG.

The SMEs surveyed for the preparation of this study maintain that the sharp rise in prices has triggered their costs "worryingly", which will force 61% of them to increase their production costs.

This makes 36.4% of SMEs anticipate a worsening of their profits, while 39.4% predict a drop in the number of orders due to lack of demand or subcontracting. For their part, 33.8% believe that they will have problems moving forward with the business.

However, 68.5% of SMEs believe that their turnover will remain the same or will improve and 76.2% believe that employment will remain the same or will improve, as long as they sacrifice their profit margins.

With the exception of inflation, SMEs do not see any other risks for the coming months. Thus, only 32.8% believe that they will be "very or quite" affected by geopolitical instability and 42% think that demographic changes will not have consequences for their business.

The Hiscox study adds that only 2.4% of Spanish SMEs have applied for 'Next Generation' funds, with the intention of digitizing the production process (38.1%), improving efficiency and sustainability (32.7% ), attract talent (29.8%) and enhance cybersecurity (29.5%).