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Bristol SMEs forecast to contribute £5bn to UK economy by 2025

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Written by: Hannah Baker | Posted 05 October 2017 9:39

Bristol SMEs forecast to contribute £5bn to UK economy by 2025

SMEs in Bristol are forecast to contribute £5bn to the UK economy by 2025, according to a new study from specialist challenger bank Hampshire Trust Bank.

The annual research, conducted in partnership with the Centre for Economics and Business Research (CEBR), reveals SME contributions to the economy will grow by 19 per cent from 2016 to 2025. 

UK SMEs currently contribute £202bn to the economy. Smaller businesses based in Bristol are set to boost their contribution by 23 per cent in the 2016-2025 period.

The 2016 Hampshire Trust Bank study previously forecast SMEs add £217bn to the UK economy by 2020. An analysis of the latest economic data now predicts these companies will add £219bn.  

Looking ahead to the years 2020 to 2025, six of the top 10 cities are forecast to grow their economic contributions by 10 per cent or more within this five-year period.  

Read more: House builder is latest tenant at Bristol office space Aztec West

In light of the ongoing economic uncertainty caused by Brexit, the study also reveals more than a third (34 per cent) of SMEs felt their business growth expectations had decreased following the decision to leave the EU.

Mark Sismey-Durrant, chief executive at Hampshire Trust Bank, said: “SMEs are forecast to grow their economic contribution significantly over the longer term, which serves as a critical reminder of the important role these businesses play in ensuring the success of the UK.

“We also should note from our study the lowering in confidence amongst some SMEs. If the UK is to be prosperous as we move away from the European Union, we need the government to keep the spotlight on smaller companies by creating conditions which will support their continued growth, as our research demonstrates how much we need these companies to develop and achieve their ambitions.”

Nina Skero, managing economist at CEBR, added: “This study demonstrates how SMEs are making a vital contribution to city economies across the UK.

“The importance of SMEs is on the rise, therefore we hope this research will boost confidence among business leaders in the UK so they may continue to support job creation and capitalise on opportunities for growth.”

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