Manchester’s small and medium-sized businesses are expected to contribute £ 14 billion to the region’s economy by 2020.
Research conducted by the Hampshire Trust Bank in partnership with the Center for Economics and Business Research (CEBR), found that the contributions of SMEs to the economy nationwide would increase by 11% from 2015 to 2020 – with companies contributing currently at £ 196 billion.
Leeds and Manchester are expected to increase their added value by 15%, followed closely by Bristol, which is expected to increase by 14% in the same period.
London is home to the largest number of SMEs and the capital tops the table for the total contribution of SMEs to the economy – £ 149 billion in 2015 to reach £ 164 billion by 2020, or 76 percent of the total contribution of SMEs to the UK economy.
The capital will see the largest increase in the number of SMEs – the number of companies rising from 444,880 in 2015 to more than half a million by 2020.
The study identified that the capital’s growth will be driven by companies in the professional and administrative services sector, which currently represent 28 percent of total SME employment.
In cities across the UK, one sector that will drive the growth of SMEs will be professional and administrative services, such as legal and accounting firms, along with ‘wholesale and retail’ and ‘administration. public, education and health ”also playing a crucial role.
Mark Sismey-Durrant, CEO of Hampshire Trust Bank, said: “Our report demonstrates the critical importance of SMEs as the engine of the UK economy.
“Their significant contribution to the fortunes of the UK economy – reaching 27% of the total business contribution by 2020 – cannot be ignored.
“Our research with CEBR should be a source of optimism for government and employers alike, as the predicted strong future growth suggests a significant opportunity for investors, business owners and their employees.
“As the government prepares for the first autumn declaration following the decision to leave the EU, I urge it to keep the focus on small businesses by helping them identify and realize new business opportunities. “
Nina Skero, Chief Economist at CEBR, said: “This study shows that there is a positive story to be told about UK SMEs and it is encouraging to see such strong growth reflected outside the capital. .
“We expect the importance of SMEs to the country’s economy to increase in the coming years and hope that this research will inspire UK business leaders to invest in their growth strategies.”