SMEs account for £2 trillion of the UK economy

A study by the School of Marketing analysing ONS data has revealed that UK SMEs (small and medium-sized enterprises) account for 44% of employment and collectively turnover £2 trillion each year.

The research also identified the sectors and regions most powered by smaller businesses across the UK.

Analysis of the industries revealed that the Hospitality Industry has the highest proportion of SMEs out of any industry: out of the 200,645 businesses in the industry, 69.8% are small or medium-sized. The Retail and Wholesale sector is the second most dominated by SMEs (43% of businesses in the industry), followed by Real Estate (35.4%), Agriculture (33%) and Manufacturing (32%).

The School of Marketing analysis found North-west England has the fourth-highest percentage of SMEs in the UK, with 26.7% of businesses operating in the area being small or medium-sized, behind Northern Ireland (29.4%), Scotland (27.7%) and the East Midlands (27.3%).

Commenting on the findings, Ritchie Mehta, CEO of School of Marketing said:

“There are more than 1.4 million British companies which employ between one and 249 people, and combined they turn over a massive £2 trillion every year, which is 45% of total turnover from UK businesses. It’s essential that they are not only given the support to grow and continue making such an important contribution, but also that there is a skilled workforce able to help them deliver and adapt to the demands of an evolving economy.”