Nearly half (44%) of companies took out bank loans or equity finance this year, up from 27% in 2014.
SMEs are also investing in technology to improve productivity, while two in five (39%) small firms plan to increase their headcount over the following year.
Patrick Reeve, managing partner at Albion Ventures, said: “This year’s report is particularly encouraging as it shows that many of the current barriers to growth are problems of success rather than failure.
“Concerns about access to finance have given way to shortages of skilled staff and insufficient management expertise.
“While red tape remains as ever the biggest concern, what has emerged very clearly is a trend towards long term financing horizons and the growth of the equity culture.”
