SMEs in the UK have seen a second consecutive year of solid growth, according to a new report from Hiscox, entitled DNA of an Entrepreneur.
The study reveals that 64% of UK SMEs have reported revenue growth in the past year. However, it’s also been found that the gulf between large and small businesses is widening. The biggest businesses in the country are outperforming their smaller counterparts on a significant scale, with 86% of larger firms with a turnover above £10 million reporting increased revenues.
Despite the growth in figures, the number of businesses that think they are better off than the previous year actually dropped from 40% in 2015 to 36%. Optimism levels have also dropped from 64% to 60%, in spite of the figures showing three years of steady improvement across the board.
22% of the businesses interviewed said that political instability was their main concern, though, interestingly, 51% claimed not to be worried about the effects of the UK’s vote to leave the EU.
With regards to attitudes on funding, the number of businesses that cited that they thought that bank funding was now more difficult to access is up from 13% last year to 16% in 2016. The number of firms who are now considering to raise venture capital funding has also seen a small rise over the same period from 4% to 6%.
The report also shows that business faith in government has decreased. 35% of businesses think that government policies support entrepreneurs, whilst 34% think that they don’t. These figures are in stark contrast to last year when there was a 20% difference in favour of government policy.
The full report can be downloaded here.