The importance of small businesses to the UK economy is set to grow even further in the coming years, with the contribution estimated to reach £217bn by 2020.
That’s the finding of new research commissioned and delivered by Centre for Economics and Business Research (CEBR) in collaboration with Hampshire Trust Bank. The £217bn represents an 11% increase on the current contribution delivered by small business sector.
Mark Sismey-Durrant, chief executive at Hampshire Trust Bank, said: “Our report demonstrates the critical importance of SMEs as the engine room of the economy. Their sizeable contribution to the fortunes of the UK economy – growing to 27% of total business contribution by 2020 – cannot be ignored. Our research with CEBR should be a source of optimism for the government and for employers as the strong future growth predicted suggests significant opportunity for investors, business owners and their employees.
‘We expect SMEs’ importance to increase’
“As the government prepares for the first Autumn Statement following the decision to leave the EU, I urge them to keep the spotlight on smaller companies by creating conditions which will be support their continued growth.”
Nina Skero, managing economist at CEBR, said: “This study demonstrates there is a positive story to be told about the UK’s SMEs and it is encouraging to see such strong growth being mirrored outside of the capital. We expect the importance of SMEs to the country’s economy to increase in the coming years and hope this research will inspire business leaders across the UK to invest in their growth strategies.”
Top 10 UK cities by SME contribution to the UK economy
|London||£148,685,754,854 (£149bn)||£164,204,264,366 (£164bn)|
|Manchester||£12,054,899,106 (£12bn)||£13,824,949,893 (£14bn)|
|Birmingham||£5,836,926,788 (£6bn)||£6,491,965,442 (£6bn)|
|Leeds||£5,427,697,183 (£5bn)||£6,252,461,722 (£6bn)|
|Tyneside (Newcastle and Gateshead)||£4,961,747,764 (£5bn)||£5,480,138,702 (£5bn)|
|Bristol||£3,690,123,363 (£4bn)||£4,215,003,215 (£4bn)|
|Sheffield||£3,416,213,830 (£3bn)||£3,697,725,216 (£4bn)|
|Glasgow||£4,948,067,384 (£5bn)||£5,444,147,994 (£5bn)|
|Edinburgh||£4,213,943,849 (£4bn)||£4,630,349,414 (£5bn)|
|Cardiff||£2,453,706,828 (£2bn)||£2,682,493,869 (£3bn)|
|Total||£195,689,080,950 (£196bn)||£216,923,499,834 (£217bn)|