SMEs will contribute £241bn to the UK's economy by 2025
According to a new study from specialist bank Hampshire Trust Bank, SMEs in the top 10 UK cities are said to contribute £241bn to the UK economy by 2025.
The annual research has been conducted in partnership with the Centre for Economics and Business Research (CEBR), which reveals that SME contributions to the economy are estimated to grow by 19 per cent from 2016 to 2025.
Such enterprises currently contribute £202bn to the economy, with the vast majority originating in London. Yet, SMEs in Greater Manchester and Leeds are said to boost contribution the most by 2025, with 26 per cent growth expected in both cities.
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…
“… [Through] creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”
Leeds is said to currently contribute £5bn to the economy which is expected to rise to £17bn, while Greater Manchester contributes £13bn and should eventually contribute £17bn.
Supposedly, London already contributes a staggering £152bn, and that figure is set to rise to £181bn.
In just over two years - by 2020 - SMEs are forecast to add £217bn to the UK economy. Amid growing concerns over the realities of a post-Brexit world, too, a third of SMEs (34 per cent) have felt business growth decreased following the June 2016 decision to leave the EU.
This is being particularly felt in London, therefore the capital is not predicted to grow so quickly - unlike the North West and Yorkshire regions.
Nina Skero, managing economist at CEBR, also commented: “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.”