SMEs set to contribute £217bn to UK economy by 2020

Businesses raking in the cash for the UK?

Small and medium-sized businesses across the country will contribute £217bn to the UK economy by 2020. This is due to a study thats been completed by Hampshire Trust Bank.

The new research, which was conducted with the Centre for Economics and Business Research (CEBR), found the SMEs’ contribution will grow by 11 per cent from 2015 until 2020. Businesses at the moment are currently raking in £196bn.

Cities such and Leeds and Manchester are looking as though they will boost their value add by 15 per cent. Bristol is close behind with a predicted increase of fourteen per cent over the same period.

London is the top dog when it comes to SMEs, the city also hold the top contribution to the economy with £149bn in 2015 which will raise to £164bn by 2020.

As the capital city London, will see an increase of the total of SMEs, the number of businesses will rise from 444,880 in 2015 to a huge 534,035 by 2020.

Sectors that will be driving SME growth are the professional and administrative services. This includes accountancy firms, ‘wholesale and retail’ and ‘public administration, education, and health’ will also have a huge impact on the increase of businesses.

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.

“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.”