SMEs expected to be ‘worth £217bn to economy by 2020’

New research suggests that Small and Medium-sized Enterprises (SMEs) across the UK’s largest cities will contribute approximately £217billion to Britain’s economy by 2020.

The news follows a study carried out by the Centre for Economics and Business Research (CEBR) in collaboration with Hampshire Bank Trust, which suggests that the UK’s “top ten cities” will welcome mass SME growth over the next few years.

Overall, their report claims that SME contributions to the UK economy as a whole will rise by 11 per cent from 2015 to 2020.

Last year, SMEs reportedly contributed £196bn. As much as 76 per cent of this came from the City of London (£149bn), which is home to the largest number of SMEs in the country.

However, CEBR’s report suggests that strong growth should be expected across all of the UK’s major cities before 2020.

Bristol is predicted to grow by 14 per cent, whereas Birmingham is expected to see growth of 11 per cent.

Growth in the so-called Northern Powerhouse cities of Leeds and Manchester will swell by 15 per cent, whereas SMEs in Tyneside, Newscastle and Gateshead, will grow by 10 per cent.

Mark Sismey-Durrant, Chief Executive at Hampshire Trust Bank, said: “As the Government prepares for the first Autumn Statement following the decision to leave the EU, I urge them to keep the spotlight on smaller companies by creating conditions which will support their continued growth.“