Small to medium-sized enterprises (SMEs) currently contribute 52% of private sector Gross Valued Added (GVA) to the UK economy, a report by the Centre for Economics and Business Research has indicated.
The amount of small businesses trading in the UK has risen by 35% over the last 10 year, the report stated, whilst the number of large businesses has dropped by 11%.
Each small business owner is worth approximately £130k, as the increasingly important role SMEs and their owners play to the UK economy was underlined.
For the UK economy to return to its pre-recession peak, another 300,000 SMEs will be required, with ‘hotspots’ of London, the South East and the South West likely to produce many of these.
It is hoped such measures announced in the Autumn Statement as the cut in corporation tax and increase in small business rate relief will encourage start-up generation and SME growth.
Invoice Finance for SMEs
SMEs are a huge driver of growth in the UK economy, with many having the potential to increase capacity and move on to the next level.
However, it can be hard for small business owners to access the appropriate external funding solutions that provide the required cashflow for growth, especially as bank lending has become harder to access over the last few years.
"Skipton Business Finance is a refreshing alternative to my previous high street bank provider" - Dennis at a recruitment agency in West Yorkshire