SMEs to contribute £217bn to UK economy, says research
SMEs are set to contribute £217 billion to the UK’s economy by 2020, according to new research from the Hampshire Trust Bank.
The research, which was completed in collaboration with the Centre for Economics and Business Research (Cebr), identified the top ten cities for SME contribution to the economy.
London was found to be the top city for SME added value to the UK economy, with contributions from SMEs set to increase from £149 billion in 2015 to £164 billion in 2020.
The city was home to 444,880 SMEs in 2015 and is expected to continue to be home to the largest number of SMEs in 2020.
The other top cities for SME contribution are Manchester, Birmingham, Leeds, Tyneside, Bristol, Edinburgh, Glasgow, Sheffield, and Cardiff.
Manchester, Leeds and Bristol are predicted to have the fastest-growing economic contributions during 2015 to 2020, with an expected growth of 15 per cent, 15 per cent and 14 per cent respectively.
The report also identified the sectors that are driving SME growth, with the professional and administrative services sector, such as legal and accountancy firms, employing the highest percentage of people in SMEs in the top ten cities.
Commenting on the report, Hampshire Trust Bank Chief Executive, Mark Sismey-Durrant, said that it demonstrates the critical importance of SMEs as the engine room of the economy.
Cebr Managing Economist, Nina Skero, 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.”