With a collective turnover of £1,753,900 (that’s 47.2% of private sector turnover) SMEs have definitely been playing an important role in driving the country’s growth and creation of wealth over recent years, as well as helping people into work. The European Commission also reported that 85% of EU jobs between 2002 and 2012 were created by SMEs.

Small Business Appeal
SMEs are an appealing place to work for many professionals, as well as graduates looking for an organisation with great culture and the opportunity for swift progression. The chance to be part of an exciting, fast-paced business where input and skill are likely to be recognised draws enthusiastic and talented individuals to small or new businesses.

Super SMEs
It’s with this talent, that SMEs are able to grow and succeed. What we call HGSBs (high-growth small businesses) are adding significantly, or we could say disproportionately, to the number of SME employees. An Octopus Investments report found that these super SMEs accounted for only 1% of the business community, but generated 68% of new jobs in the UK between 2012 and 2013. Last year, 20% of economic growth is said to have been created by these HGSBs.

An Uneven Divide
There is a clear north south divide when it comes to successful and powerful SMEs. One in every 25 professionals working in London is employed by a HGSB, but in Wales it’s only one in 80. It could be down to the government to help businesses outside of London and the South East grow and employ. Improving digital infrastructure and working on skills gaps could help local businesses out in the long term and help them trade internationally.

Barriers to Employment
The ONS report also highlighted a concern with the high proportion of businesses that do not employ. Many of the UK’s VAT registered businesses, actually don’t employ at all, often reaching out to freelancers or collaborating with others who are also self employed. Raising the question from the country’s smallest businesses of whether it should be more simple to grow a small business and employ workers.

However, despite some inconsistency and challenges, we know that SMEs are playing an important role in the UK economy and job market. Creative, professional and digital sectors are among the most successful industries in terms of overall job growth, productivity and average wages (according to the think-tank’s Small Business Outlook 2015). Strong customer service, product innovation, local knowledge and of course talented employees are cited as some of the key factor of SME success. So, if you’re a business leader and you’re looking to grow your team further, perhaps we can help – to have a chat with us about your recruitment contact us here.