Recent research has revealed that the smaller sized businesses based in the top 10 cities are predicted to contribute a staggering £241 billion to the UK’s economy within the next eight years.
The annual report, compiled by Hampshire Trust Bank in partnership with the Centre for Economics and Business Research (CEBR), shows that SME contributions to the economy will grow by 19% from 2016 to 2025.
Currently, SMEs contribute £202 billion to the economy, with the vast majority of this value originating from companies in London.
However, interestingly it is the SMEs in Leeds and Greater Manchester that are set to boost their contribution the most, with 26% growth expected in both cities in the 2016 – 2025 period.
Bristol follows closely behind, predicted to increase its SME contribution by 23%.
Mark Sismey-Durrant, Chief Executive at Hampshire Trust Bank, commented, “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.”
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