8 Ways That SMEs Improve Britain
According to SmallBusiness.co.uk, in 2014, there were an estimated 5.2 million businesses in the UK – 99.9 per cent of those being SMEs (where SMEs are businesses with fewer than 250 people in them). This means that SMEs are fundamental to the UK economy, and prosperous small and medium-sized businesses lead to a more prosperous nation. Here are just 8 ways that SMEs improve Britain.
- They generate economic growth
52% of SMEs feel positive about their growth prospects, predicting up to a 10% increase by 2016. More money in the pockets of businesses means more employees, higher wages, and therefore more money back into the economy.
- They create jobs for everybody
They employ 60% of the private sector workers in the UK.
- They keep Britain’s high-streets thriving
The British high-street is an institution and while large businesses push more and more of their work online, many micro-SMEs (those with 10 employees or fewer) keep high-streets diverse. From hairdressers to bakeries to bookshops, these businesses rely on a personal experience to thrive.
- They provide pensions to their workers
Following the Pensions Act 2008, every employer in the UK must contribute to a scheme for their employees, meaning that every employer from 1st January 2016 – who employs fewer than 30 people – will need to complete auto-enrolment.
- They produce some of the best working environments
SMEs create some of the UK’s best working environments. Best Companies produced this list of the top 100 small businesses to work for. In their number 1 spot, employees at TPP – a specialist IT provider for the healthcare sector – are encouraged to switch off at 5.15pm and leave work behind.
- They keep Britain’s workforce personable
Small companies are more agile and more willing to take risks. As a result, they tend to have more personality. They let their staff do the talking, so you’re more likely to be treated like an individual than if you work for a big global.
- They encourage entrepreneurship
Britain is known around the world for its entrepreneurial spirit, and that’s due – in part – to the responsibility that SMEs ask of their employees. They allow people to see the top from the bottom and provide fast-track growth plans for people who want to take on the challenge.
- They create thousands of new families
SMEs aren’t actually always that small. While some have 5 employees, others have 250. According to the EU definition small businesses are those with <50 employees; medium-sized businesses as those with <250 people. Regardless of the size, they are the best breeding grounds for new friendships.
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This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.