According to research conducted by Hampshire Trust Bank in partnership with the Centre for Economics and Business Research, small and medium-sized enterprises (SMEs) in the UK’s top ten cities are expected to increase their contributions to the economy by 19% between 2016 and 2025 – from £202bn to £241bn. Although the vast majority of this value originates from SMEs in London, Leeds and Greater Manchester contributions are expected to see the fastest growth (26%), whilst Bristol is forecast to produce the second fastest rate of growth (23%). For more details on this subject please read the bulletin below which was issued by Insider News Media today.
Roger Mundy, Managing Director, Beardsley Theobalds. 5th October 2017
SME contributions to grow by 19 per cent by 2025 0 CEBR
Contributions to the economy made by small and medium-sized enterprises (SMEs) in the UK’s top ten cities will grow by 19 per cent from 2016 to 2025, according to new research.
The research, carried out by specialist challenger bank Hampshire Trust Bank in partnership with the Centre for Economics and Business Research (CEBR), claims UK SMEs currently contribute £202bn to the economy, with the vast majority of this value originating from companies in London.
They are forecast to contribute £241bn billion to UK economy by 2025, with Leeds and Greater Manchester contributions will see the fastest growth (26 per cent).
Bristol follows closely behind, predicted to increase its SME contribution by 23 per cent.
London, Tyneside, Birmingham, Edinburgh, Glasgow, Cardiff and Sheffield are all set to grow by more than 14 per cent.
Mark Sismey-Durrant, chief executive at Hampshire Trust Bank, said: “SMEs are forecast to grow their economic contribution significantly over the longer-term, which serves as a critical reminder of the important role these businesses play in ensuring the success of the UK.
“We also should note from our study the lowering in confidence amongst some SMEs.
“If the UK is to be prosperous as we move away from the European Union, we need the government to keep the spotlight on smaller companies by creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”
Nina Skero, managing economist at CEBR, added: “This study demonstrates how SMEs are making a vital contribution to city economies across the UK.
“The importance of SMEs is on the rise, therefore we hope this research will boost confidence among business leaders in the UK so they may continue to support job creation and capitalise on opportunities for growth.”
The study also found that more than a third of SMEs felt that business growth expectations had decreased following the decision to leave the EU.