The “SMBs Driving Economic Recovery” report from Sage today reveals that, despite ongoing economic turbulence, growth in turnover for UK SMEs is expected to outperform the growth rate for all businesses from 2023-2025.
SMEs are expected to make up 51.9 per cent of total business turnover in the UK economy by 2025. The report, which assesses data in the period from 2005 to 2021, including the impacts of the Global Financial Crisis, then forecasts growth trends over the next three years.
Analysis predicts that the number of UK SMEs is expected to rise by 342,000 from 2022 to 2025, while emphasising the importance of SMEs across all regions in the UK. In 2022, London generated £662bn worth of SME turnover, while in the North East, SMEs employed 67 per cent of all business employees in the region.
Historical market analysis by Cebr also underlines the vital role of SMEs in the recovery from the 2007 to 2009 Global Financial Crisis and projects a similar pattern when we emerge from current economic challenges. In the UK, the number of SMEs grew by 12 per cent between 2013 and 2015, well exceeding pre-crisis levels.
The data also found that 13 per cent and 10 per cent of all new businesses were born during 2008 and 2009, respectively, showing that entrepreneurs were not fazed by the downturn.
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Derk Bleeker, president EMEA at Sage, commented: “SMBs shouldn’t be underestimated in helping to recover and drive the economy as we head into the next few years. They make up 99.9 per cent of all businesses and generated more than half (51.1 per cent) of UK business turnover in 2022.
“So, while business owners are facing real challenges, they are clearly in a better position to adapt to changing economic landscapes and have the resilience to ride the storm.
“Our ask of the government is simple; make it as easy as possible for SMBs to do business digitally and adopt technology that will unlock productivity and give them the insights to adapt and grow quicker.
“With the right support, policies and incentives in place, SMBs will unleash their full potential and play a vital role in economic recovery and sustained long term growth.”
By Matthew Neville
Source: Bdaily News