We’ve been hearing a lot about the challenging economic conditions within the UK at the moment, but in fact there is some encouraging news coming from the small business sector. Despite the challenging macro-economic picture, there’s a good trend of more SMEs posting strong growth figures in defiance to the larger economic picture.
According to the latest figures from Experian, there are currently 4,353 small to medium sized enterprises demonstrating strong growth. This is an increase of almost 10% when compared to similar figures from last year. These businesses have each demonstrated an aggregate growth of at least 33% in the last three years. These companies make up 17% of the population of UK SMEs, which overall numbers 24,955, including businesses with a turnover of £2.5 million – £100 million.
What’s more, it’s not the businesses on the bigger end of the scale which are holding up the smaller ones. In fact, of the high growth companies identified, those companies with turnovers of between £2.5 million – £10 million performed the most strongly. 51% of businesses in the high growth sector – accounting for 2,002 companies – had turnovers of less than £10 million.
This research shows that despite the overall gloom and doom, there are still many companies achieving good growth throughout the economy and across different markets and sectors. It also shows that businesses from all over the UK, and particularly in Yorkshire and the West Midlands, were achieving growth – it’s definitely not just down to the London based businesses.
This is all very encouraging – it just goes to show that it’s possible for all sorts of businesses to achieve growth if they take advantage of the opportunities that come their way. With the new government funding initiatives on the way and with the banks being encouraged to lend more, hopefully this can be transferred to even more SMEs in the future.