SMEs predict increase in revenue despite diminishing confidence in UK economy

19 December 2016 by
SMEs predict increase in revenue despite diminishing confidence in UK economy

A report has found that small and medium-sized enterprises (SMEs) predict that revenue will accelerate in 2017, regardless of their growing concern for the UK economy following the Brexit vote.

It forecast revenue growth of 1.8% and employment growth of 0.8% in 2017, compared to 1.5% revenue growth and 0.7% in employment growth in the Q3 tracker.

SMEs also forecast a profit increase of 1.1% compared to 0.2% over the last 12 months.

The SME Confidence Index score has fallen from +5 in Q3 to -4 regarding SMEs' own companies, -2 to -9 for their respective industries as a whole, and from -13 to -15 for the UK economy.

Emma Jones MBE, founder of Enterprise Nation and HM Government's Crown Representative for Small Business, said: "Britain's small businesses play a crucial role in driving our economy, and are the most driven, adaptable, and resilient you will ever meet. With the right support, like lower rates, easy access to finance, and digital opportunities which boost exports and productivity, you'll continue to see them grow year-on-year."

However, the prospect of Brexit has not put businesses off of expanding - only 26% of SMEs said they had delayed business decisions because of Brexit while 74% remained unfazed.

Mark Pragnell, chief project economist, Capital Economics, said: "Although a majority of SMEs see the consequences of Brexit as a risk over the next 12 months, Brexit isn't everything. A bigger number of SMEs see euro-zone instability, a fall in domestic demand, higher price inflation and a global recession as greater risks to their business."

SMEs face eight-week wait for payment >>

Viewpoint: Give our SMEs a chance >>

Government announces support for SMEs impacted by floods >>

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs >>

Latest video from The Caterer

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking