SMEs and their importance to the UK economy

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SMEs and their importance to the UK economy

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BCRS offer loans to SMEs making a positive contribution to the economic well-being of the West Midlands and surrounding areas. Injecting £250,910,135 since 2002. As you can well imagine we are very happy and proud of the impact we are having in the communities where we live and work.

To help everyone’s understanding of the importance of SME’s to the UK economy – please keep reading!

What is an SME?

An SME is a small or medium-sized enterprise. According to the EU, the definition of an SME is a business with fewer than 250 employees, and a turnover of less than €50 million. Within this umbrella there are three different categories: medium-sized, small, and micro-businesses. These categories are defined by turnover.

• A medium-sized business has fewer than 250 employees and either a turnover of up to €50 million or a balance sheet total of up to €43 million

• A small business has fewer than 50 employees and either a turnover of up to €10 million or a balance sheet total of up to €10 million

• A micro-business has fewer than ten employees and either a turnover of up to €2 million or a balance sheet total of up to €2 million

Their benefit to the UK economy

The number of private sector businesses has risen in the UK over the last 18 years by 2.2 million. SME’s contributed 47% annual turnover to the UK economy as of 2016. However, that has now increased to £2.0 trillion (52%) since then.

The relative importance of small businesses is increasing with these businesses making up 16.3million; 60% of total private sector jobs. Compared to large organisations which identify as having over 250 employees. SME’s make up 99.9% of all businesses in the UK, 96% of which are micro-businesses, employing no more than 10 people, leaving just 0.1% for large organisations. From this, it is clear to see that small businesses are of significant importance for the future of the UK and its economy.

If you are an SME looking for funding and want to have a positive contribution to your local economy head to bcrs.org.uk to find out more.

Come back next week (Thursday’s at 3pm) to find out how you can use our loans for recruitment purposes.

www.bcrs.org.uk 

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BCRS Business Loans 

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