Small businesses expect revenues to shrink in 2017

Three quarters of SMEs expect revenues to shrink or stand still in the next 12 months, a new study reveals.

Leading commercial insurer RSA releases figures showing that 51 per cent of UK SMEs think the government is not doing enough to help small businesses grow, with 71 per cent of small businesses expecting their revenues to either fall or stand still in 2017.

Five measures to drive SME growth in 2017

In line with this finding, RSA suggests five measures for Government and industry working in partnership that would help to better facilitate business growth.

Provide businesses more information/data on markets and consumer behaviour that small businesses could incorporate into their business strategy.

Offer advice on what SMEs can do to protect their business from the potential effects of economic uncertainty.

Invest more in developing infrastructure, such as broadband and public transport, to help SMEs operate more efficiently and reach more consumers.

Give companies with better access to finance so they can obtain the funding they need to expand.

Provide more information/data on failed businesses and what led to their bankruptcy so that SMEs can better manage their risks.

Russell White, schemes and deals director, regions and SME, commercial risk solutions at RSA, says that SMEs are significant drivers of UK economic growth, with combined revenues of around £1.8 trillion. It is crucial that they are given as much support as possible in order to help them thrive.

White adds, ‘However, our research suggests that SMEs don’t feel they are adequately supported at the highest level in what is a tough economic environment, despite the benefits improving SME growth could bring, in terms of lower unemployment, higher wages and increased gross domestic product.

‘It is paramount that the government heeds SMEs’ calls for increased support, particularly given the economic uncertainty the UK is predicted to experience as a results of events such as Brexit.’

Further reading on revenues growth

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