Small and medium-sized enterprises (SMEs) are anticipating a challenging start to 2016, despite saying their financial position has improved over the past year.

This is according to new research from courier service CitySprint, which revealed 53 per cent see themselves as better off financially than they were at the end of 2014.

However, a fifth said they expect problems with hiring suitable staff, while 23 per cent see increasing competition as an issue. Nearly a third (32 per cent), were concerned over a lack of customer demand.

Uncertainty surrounding the UK's position in the EU was also raised as a concern by senior figures and SME owners, with 60 per cent saying it is affecting their long-term growth plans and a quarter stating it "prevents them planning ahead to a significant degree".

"Despite what is clearly a high performing year for them, the UK’s SMEs are not quite out of the woods yet," CitySprint CEO Patrick Gallagher remarked,

SMEs should look to forge partnerships with other organisations to help generate new business, he added.