Why Small To Medium Businesses Are Vital To Britainís Economic Recovery
By Scott Goodwin, CEO, Voxclever
With over 4.7 million small businesses in operation across the UK, small and medium businesses (SMEs) have long been recognised as the lifeblood of Britain’s economy, and never more so than as Britain begins the long process of pulling itself out of the recession.
SMEs contribute significantly to employment, social cohesion and local development in the UK and are already proving invaluable as the country takes its first steps on the road to economic recovery.
In comparison to larger businesses, SMEs are more able to be flexible, competitive and adaptable to change than their larger, lumbering counterparts which...
...struggle to react to changes in the market anywhere near as quickly.
SMEs, which are defined as businesses employing fewer than 250 employees, account for 98% of businesses in the UK, employing huge numbers of people and as many of these existing small businesses will grow into the larger businesses of the future, they will also provide a major part of the UK’s new jobs in coming years.
SMEs are being hailed as vital drivers of economic recovery for a number of reasons:
Firstly, there has been significant focus and investment in SMEs of late which is proof enough that the Government believes SMEs are the economy’s fastest route to growth and that the SME sector is where its money is best spent.
Secondly, the SME sector is a source of stability in an unstable economy, and provides competition and innovative businesses — many of which make up a number of important trades and industries in the UK.
SMEs also offer consumers a greater range of choice adding significantly to the array of products and services on offer as they have the ability to flourish in limited and specialised markets which larger firms simply wouldn’t consider for economic reasons.
The influence of SMEs on... continued on page two >