3 in 5 SMEs chart increase in turnover
By Chanice HenryAs the UK economy continues to strengthen with GDP increasing by 0.9 per cent in Q2 20141, small businesses have experienced a level of growth, according to research from Barclays
As the UK economy continues to strengthen with GDP increasing by 0.9 per cent in Q2 20141, small businesses have experienced a level of growth, according to research from Barclays2.
Three in five (62 per cent) small and medium enterprises (SMEs) reported growth in the last financial year3, with an average increase in turnover of 14 per cent - or £52,5004.
Smaller SMEs5 saw the highest increase in turnover last year, reporting 18 per cent growth, 4 per cent higher than the UK average. One in ten (11 per cent) UK SMEs even saw a substantial increase in growth of 21 per cent or more.
Moreover, SMEs that export claimed an even greater impact on turnover due to overseas trade, with over a quarter (27 per cent) of exporters attributing growth of more than 40 per cent year on year. A third (37 per cent) of SMEs now exporting said they had reached a growth ceiling in the UK within the first three years of business, and could no longer drive their desired growth from the UK market alone.
Table: SME response to question: “Looking back to the last financial year 2013 - 2014, on average how much did your business turnover grow by?”
|
|
SMEs in total |
SMEs that export |
SMEs that do not export |
|
Median rise in turnover |
14% |
17% |
11% |
Looking ahead to future growth, two thirds (65 per cent) forecast their business turnover will rise over the next 12 months. There is strong SME confidence in opportunities for future growth even above 2013/14 levels, with over one in ten (12 per cent) predicting turnover growth of 21 per cent or more.
Steve Childs, Head of International at Barclays Business commented: “Confidence has returned to the SME market at record levels and we’re seeing real optimism for future growth well into 2015. Small businesses are seizing opportunities available to them in the UK and internationally. Trading overseas is just one example of how businesses have accelerated their growth and is key to the health of the UK economy in addition. It has never been a more important time for SMEs to get the support they need to trade internationally.
Keywords: Barclays Business, SMEs exports destination, Steve Childs, Head of International, factors in generating business when selling goods and services
Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/3-in-5-smes-chart-increase-in-turnover