At Businesscomparison.com we know the value small and medium sized enterprises bring to our economy but now a new report has revealed small companies will become even more important in the future. Research by the Centre for Economics and Business Research (Cebr) and Hampshire Trust bank has led them to forecast that SMEs across the top 10 UK cities will contribute £217bn to the UK economy by 2020.
The figure represents an increase of 11 per cent in the value that SMEs add to the economy and highlights the professional and administrative sectors as leading the way in this growth. The Northern cities of Leeds and Manchester are expected to see the fastest growth in contributions whilst London will continue to top the board with the overall amount contributed.
Mark Sismey-Durrant, Chief Executive at Hampshire Trust Bank, comments:
“Our report demonstrates the critical importance of SMEs as the engine room of the economy. Their sizable contribution to the fortunes of the UK economy – growing to 27 per cent 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 he 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 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
|City||2015||2020||% change 2015-2020|
|London||£148,685,754,854 (£149bn)||£164,204,264,366 (£164bn)||10%|
|Manchester||£12,054,899,106 (£12bn)||£13,824,949,893 (£14bn)||15%|
|Birmingham||£5,836,926,788 (£6bn)||£6,491,965,442 (£6bn)||11%|
|Leeds||£5,427,697,183 (£5bn)||£6,252,461,722 (£6bn)||15%|
|Tyneside (Newcastle and Gateshead)||£4,961,747,764 (£5bn)||£5,480,138,702 (£5bn)||10%|
|Bristol||£3,690,123,363 (£4bn)||£4,215,003,215 (£4bn)||14%|
|Sheffield||£3,416,213,830 (£3bn)||£3,697,725,216 (£4bn)||8%|
|Glasgow||£4,948,067,384 (£5bn)||£5,444,147,994 (£5bn)||10%|
|Edinburgh||£4,213,943,849 (£4bn)||£4,630,349,414 (£5bn)||10%|
|Cardiff||£2,453,706,828 (£2bn)||£2,682,493,869 (£3bn)||9%|
|Total||£195,689,080,950 (£196bn)||£216,923,499,834 (£217bn)||11%|