5.5 mn SMEs in UK can help reverse stalled productivity: Goldman Sachs

These SMEs, overall, are optimistic about doing business in the United Kingdom and have quickly embraced advanced technology like generative artificial intelligence.

But they also saw areas where government support is greatly needed to help them be more efficient.

Right now, only about 36,000 of them qualify as ‘productivity heroes’—SMEs that are established (more than three years old) and are growing revenues faster than they are expanding their workforces, according to the survey report.

Seventy-one per cent of 10KSB UK alumni are increasing their sales turnover, and 73 per cent are increasing their headcount.

The respondents, overall, had a positive outlook: Some 68 per cent said the UK is a good place to run a small business; 90 per cent or more expected to grow revenue and headcount in the next three years.

Fifty-five per cent also said they are unable to find the talent they need, and only 12 per cent believed the education system is equipping young people for the future of work.

A large majority—89 per cent—believed enterprise skills should be embedded within the core secondary school curriculum.

The second priority of survey respondents for the next government was on improving small businesses’ access to financing. Fifty-eight per cent said they would consider taking their companies public, and 44 per cent of those said the UK market is attractive for an initial public offering (IPO).

But 37 per cent said they were unable to access the capital they need to grow their businesses.

Fibre2Fashion News Desk (DS)