The UK’s small business economy is expected to grow by nearly a fifth, in total, by 2025, but some areas are forecast to grow much more rapidly than others.
The CEBR research predicts that alongside the growth in the value of SMEs to the economy, the total number of SMEs in the UK will exceed one million in the coming years, with 1,022,200 predicted to be in business in the UK in 2025.
Meanwhile, it is anticipated that SMEs will make available an additional 800,000 jobs in the UK economy during the same period.
However, it is unlikely that we will observe a uniform level of growth across the country. While Manchester and Leeds-based SMEs are predicted to grow their contribution to the UK economy by 26 per cent between 2016-2025, another northern city, Sheffield, is predicted to increase its SMEs contribution to the UK economy by just 14 per cent over the same period.
The London-based SME economy is by far the largest in the UK and already accounts for £152 billion of the UK’s £202 billion SME economy. It is expected to account for nearly £30 billion of the predicted £39 billion growth in the sector by 2025.
The research also quizzed SMEs on their expectations about the likely impact of Brexit, with more than one in three saying their growth expectations were lower than they were prior to the referendum, whereas only one in every ten stated the opposite.
Partner, Toni Hunter, said: “We often refer to the significant role SMEs play in our economy and, with this report in mind, their contributions only look set to climb.”
“These predictions should serve as a confidence boost for SMEs during what are, for many, testing times. Despite tax complexities, rising costs and the big black cloud cast by Brexit, in the long-term SMEs could be the key to keeping the UK economy standing strong.”
“The lack of optimism amongst SMEs that these findings imply, however, doesn’t marry up with the exceptional performance that has been forecast. I think the Government, local councils, lenders and advisers, such as ourselves, have a responsibility to support these businesses in any way that we can, to help them overcome whatever obstacles they come up against and, ultimately, to improve their outlook on the future.”
Here at George Hay we understand the challenges facing SMEs and fledgling businesses in today’s economic climate. That’s why we’re on hand all year round, not just at year end, to support you and keep you informed so that you can succeed in running your business. With us, you’re in safe hands so why not give us a call today on 01480 426500 or fill in one of our online enquiry forms here.