RISING inflation and cyber security attacks are the most common fears among small medium enterprises (SME) for 2018, according to new research.

Barclays Business Banking research found firms believe these issues are the most likely to negatively impact their growth next year, while consumer demand is most widely expected to have a positive impact.

Barclay's annual Hopes and Fear Index found 43 per cent cited inflation as a fear to hinder their business growth, with 36 per cent fearing the effects of prices rising faster than wages, which could put pressure on consumers.

The risk of cyberattacks was given by 41 per cent, the general state of the economy by 40 per cent, fraudsters by 39 per cent, and Brexit and UK politics 35 per cent.

Most SMEs, 65 percent, plan to maintain the same level of investment, and employee numbers - 68 per cent - as for 2017.

Ian Rand, chief executive of Barclays Business Banking, said: “The research reflects small businesses being empowered by new technology and e-commerce.

"The research reflects small businesses being empowered by new technology and e-commerce.

"Compared with a year ago, more think these developments will have a positive impact on their business.

"From our work with small companies, we see them making more use of data and online services, including our own, that help them manage their marketing and finances more easily and effectively.

"By making the most of these opportunities, SMEs can increase sales, cut costs and save time, strengthening their business.

"Inflation is clearly a worry, and in particular the potential for prices to rise faster than wages.

"Business owners are clearly taking a prudent and cautious approach to the year ahead.

"However, there are positive signs of SMEs investing more and hiring more staff.”