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Hungarian SMEs positive about future growth

A representative survey by UniCredit Bank  and Inspira Research has found that the vast majority of Hungarian SMEs believe their future prospects are positive. Foreign-owned companies, however, are much more optimistic than their Hungarian-owned counterparts.

The findings by UniCredit and Inspira Research reveal that the leaders of SMEs with annual net incomes between HUF 51 million and HUF 1.5 billion expect to serve more clients and achieve higher profits in the upcoming period. The research sorted enterprises not by income, but by potential, investigating them by what it calls “innovational aspects.”

Enterprises in Central Hungary are the most satisfied with their actual performance, according to the survey, while respondents from Eastern Hungary are the most optimistic about the future, especially in the fields of modernization, innovation, and investment, the research found.

Some 50% of all respondents have a positive outlook on the future of their enterprises, with foreign-owned companies being significantly more optimistic than their Hungarian-owned counterparts. About one-third of company leaders see a realistic opportunity for modernization in the future, with the same amount of SMEs believing that a larger amount of capital will be reinvested for the sake of development.

Only businesses in the “very low potential” category, most of them family-run, believe they are insignificant members of the economy without any great prospects. Companies of “low” and “medium” potential are more optimistic, with the latter seeing themselves as challengers on the market. 

Members of the “gold” and “diamond” potential categories believe in growing income, profit, clientele, and an expansion of their service and product portfolios. About 20% of the most optimistic “diamond” category businesses are foreign-owned, with 7% of “diamond” companies reporting an income of more than HUF 1 bln.