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SMEs predict increase in revenue despite diminishing confidence in UK economy

19 December 2016 by

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."

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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.

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