SMEs in the top 10 UK cities are set to contribute £241bn to the UK economy by 2025, a study from Hampshire Trust Bank has revealed.
The annual research conducted in partnership with the Centre for Economics and Business Research (CEBR) reveals that SME contributions to the economy will grow by 19% from 2016 to 2025.
Mark Sismey-Durrant, chief executive at Hampshire Trust Bank, said: “This research serves as a critical reminder of the important role SMEs play in ensuring the success of the UK.
“We need the government to keep the spotlight on smaller companies by creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”
UK SMEs currently contribute £202bn with a vast majority of this value being centred in the capital; however the study shows that SMEs in Leeds and Greater Manchester will boost their contribution by 26% between 2016 and 2025.
Nina Skero, managing economist at CEBR, added: “The importance of SMEs is on the rise, therefore we hope this research will boost confidence among business leaders in the UK so they may continue to support job creation and capitalise on opportunities for growth.”
The study also revealed that a third of SMEs (34%) felt their business growth expectations had decreased following the Brexit vote, particularly in London, hence why slower growth levels in the capital are predicted.