New findings from the RSA commercial insurer suggest that SMEs are contributing about half to the Gross Added Value from the private sector to the British economy. The survey also predicts that over the next few years private enterprise will continue to grow faster than the rest of the British economy. However, in order for the UK to return to its pre-recession levels it would need about 300,000 strong SMEs.
The RSA survey also predicted that individual entrepreneurs were able to contribute about £130,000 each to the UK economy over the course of this year. This has helped support the economy in the UK because while big business has fallen by about ten percent over the last decade, the number of small businesses in the country over the last decade has increased by about 35%.
Further breakdown of the survey results reveals that London is in the lead with about 1231 companies per every ten thousand adults. Following London as top locations for SMEs are the South West regions of England and the South East regions with about 1090 firms per every ten thousand adults. At the bottom of the table are the north East and North West of England followed closely behind by Scotland.
A RSA member stated that the SMEs in Britain are the most valuable assets that the county has in terms of economic growth. Regionally the picture is very varied so as SMEs continue to reach for further growth the real question is how various regions can be encouraged to support them. Suggestions include support from the Government, local business community and via Local Enterprise Partnerships.