SMEs could be increasingly important to UK economy

Monday 28 November 2016

Following the UK’s decision to leave the European Union (EU) has led to significant economic uncertainty throughout the country. 

Millions of residents are now concerned about how their incomes will be affected by the decision, with the effects of the move constantly being debated in parliament and across the country. 

Whichever side of the fence you are on, there’s no denying that the decision to exit the bloc needs proper planning and preparation to be executed properly. In light of this, small businesses could become vital in helping to provide a strong economy.

How will SMEs help the economy?

SMEs make up a significant proportion of the businesses across the UK, meaning they have a significant role in the overall performance of the economy. 

Jonny Dunning, CEO of weliketowork.com, spoke to the Falkirk Herald about the 5.4 million small businesses in the UK and how they are known by many people as the “engine room of our economy”. 

“With this in mind it stands to reason that if we focus on helping small businesses grow, our economy is much more likely to stay healthy if big companies have a wobble,” she continued. 

Ms Dunning went on to say that trading is difficult for many small companies, adding that uncertainty is causing long-term financial and business planning to be challenging. 

“The uncertain future facing the UK is making small business owners cautious. It’s not easy to commit to long-term financial planning or investing in growth when the future’s so unclear. 

“But ironically it’s now that small businesses owners need to be more ambitious, creative and productive than ever before,” Ms Dunning told the news provider. 

She also believes that freelancing is an option for small companies to carry on pushing for growth and productivity without needing to take enormous financial risks. The large network of freelancers in the UK make it easy to outsource small and manageable projects, enabling high productivity. 

As well as this, the ability to reach capable employees in the UK could become increasingly important if staff are restricted following the departure from the EU. 

Ms Dunning also told the news provider that skills shortages could become worse if there is a drop in EU workers, meaning freelancers in fields such as marketing, web design and accounting can make a significant difference to the economy. 


By Victoria McDonnell

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