SMEs head the UK’s march back to economic stability

SMEs are leading the UK out of recession as they are one of the main contributors to the country’s economy. Two new reports show how SMEs in the East of England are coming up swinging with one report detailing how medium sized businesses are still able to achieve growth numbers and another report stating that manufacturing businesses have seen a gentle rise in sales over the past few months.

The growth study was conducted by Grant Thornton the business and financial advisers with help from the Centre for Economics and Business Research. It discovered that in general SMEs have managed to continue to thrive despite the economic downtown with a turnover growth rate of about four percent. The UK general growth average is only 3%.

The study further revealed that out of the £628 billion turnover of last year East England based countries contributed about 9% with a total turnover of £54.8. Practice leader for Grant Thornton in Cambridge Paul Naylor stated that these results clearly tell a positive story of how SMEs have been able to handle the downturn. He added it also shows just how critical SMEs are to the British economy.

Naylor added that one thing that does need to be looked at are the productivity levels of SMEs because although they are good when compared to UK firms, they are still behind the figures in other regions of Europe so there is still a lot of opportunity for growth and development.

The sales numbers were provided by the Manufacturing Advisory Service which just completed a barometer study and found that 56% of SME firms questioned expect their company to grow by March of 2013 with another 39% reporting they will invest in machinery and a plant by the same date.