New analysis shows the importance of SMEs to the UK economy

New analysis shows the importance of SMEs to the UK economy

Paddington area, London. July 2022 Image by Tim Sandle.

Contribution study smaller companies impact on the British economy. This is an important consideration given the proportion firms in this range and the extent to which such companies have been ignored by public policy in recent years. SMEs make up over 25 percent of all businesses in the UK.

With between one and 249 employees, these businesses generate over £2 trillion in turnover and employ 44 per cent of the UK workforce.

With this proportion, different parts of Great Britain differ in numbers. Northern Ireland has the highest percentage of SMEs of any region, at 25 percent. Scotland has the second highest percentage of SMEs of any region in the UK, with 27.7 per cent of all businesses being SMEs.

Similarly, in some sectors, the share of small players is higher than that of large companies. For example, the hospitality industry is dominated by smaller firms, accounting for 68 percent of all businesses.

Of the 200,645 enterprises operating in the industry, 140,050 are small or medium-sized, which is approximately 69.8 percent. The hospitality industry consists of accommodation and catering services, including hotels and restaurants.

The Small Business Study is conducted by the Marketing Education Center. School of Marketing. The institution analyzed the latest government data on the number of SMEs in 2021 to see which regions and industries have the most SMEs.

The industry with the second largest percentage of SMEs is wholesale and retail trade. This industry, which also includes car and motorcycle repair shops, has more than 500,000 businesses, and more than four in ten (43%) are small or medium-sized.

The real estate sector ranks third in terms of the share of SMEs: 35.4 percent of all enterprises have less than 250 employees. The industry has 134,095 businesses operating in the UK, 47,740 of which are small or medium-sized.

In fourth place is the agriculture, forestry and fishing industry, which has more than 150,000 enterprises in the country, of which approximately 50,000 (33 percent) are small and medium-sized enterprises.

The industry with the fifth largest share of SMEs is manufacturing, with 32 percent of enterprises operating in this industry being small or medium-sized, representing 87,210 out of 270,000 enterprises.

The study also assessed the most in-demand skills for entry-level positions in a range of industries, and found that communication and Microsoft Office skills were the most frequently mentioned skills in job postings, both appearing in 61% of the jobs analyzed. The third most sought-after skill is “High Attention to Detail,” appearing in 44 percent of entry-level job ads. Rounding out the top five is fourth place between Time Management and Self Motivation, both of which appear in 39% of job postings.

Commenting on the findings, says Richie Mehta, CEO of the School of Marketing. digital magazine: “There are over 1.4 million UK companies employing between one and 249 people and a combined annual turnover of around £2 trillion, representing 45% of the total turnover of UK businesses. It is critical that they are not only supported to grow and continue making such an important contribution, but also that there is a skilled workforce available to help them meet and adapt to the demands of an emerging economy.

He adds: “This data shows that when it comes to skills, there are some common themes that employers are looking for across professions, however, in the current environment, training budgets are likely to be cut and the skills gap could widen. expand. SMB owners can take advantage of the apprenticeship fee scheme to recruit new hires or train current digital and data-driven programs, with the vast majority of training costs covered by the fee.”

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