AMBITIOUS businesses have been urged to seize on improving conditions and invest for growth.

Small and medium sized enterprises (SMEs) in Brighton are taking action to benefit from the economic recovery, according to an HSBC report.

But they need to capitalise with positive investment or face missing the boat, the Ambitious Businesses report suggested.

More than four fifths (85%) of SMEs in the region are planning for growth this year, and 73% of business leaders are confident in the economic climate – up from 42% the same time last year.

But almost a third of businesses (30%) in Brighton believe it is too risky to make large investments.

Two thirds (67%) of Brighton businesses say competition has heated up as the economy has improved and more than half (54%) realise if they don’t invest for growth in the second half of the year they risk falling behind the market.

Nikki Wile, HSBC area commercial director for Sussex, said: “Businesses in the area are actively investing for growth and this is reflected in the fact that our lending and pipeline has never been higher. “SMEs have taken a cautious approach over the past couple of years, but with confidence returning, we’re supporting an increasing number of fast growing businesses.”

HSBC recently allocated £200 million of new lending to Sussex to help businesses achieve growth plans, as part of a £6 billion SME Fund.

Tony Mernagh, executive chairman of the Brighton and Hove Economic Partnership, said: “Brighton has a lot of small businesses and a lot of lifestyle businesses. Both are notoriously reluctant to invest.

“The former because they have less money to ‘gamble’ on growth and the latter because they don’t necessarily want large growth.

“The economy has picked enormously in recent months but there are lingering uncertainties that hold back many small businesses from parting with their cash.”

Sophie Crossman, of Silicon Beach Training, a training provider which helps Brighton businesses grow, said: “We’re seeing an increase in the amount of training requested by local SMEs, which indicates that they are investing in growth.

“Brighton is a hub for SMEs, particularly in the digital sector, and so without positive investment many businesses will find themselves at a disadvantage as their competitors grow.”