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Why SMEs are so important to the UK economy

August 8, 2018

SMEs play a crucial role in the growth and success of the UK economy.

These businesses are even branded as the backbone of the country. With their help, economic growth happens, new markets are opened and more jobs are created. It is also a place where new ideas are born that can help make the UK more competitive.

SMEs should be highly encouraged in the country as they are essential in the country’s road to recovery and even more. Unfortunately though, these businesses are facing tough challenges. From prohibitive regulations to red-tape policies, they have a hard time thriving. As a result, a lot of small businesses don’t survive. The tough competition plus these rigid policies have driven a lot of them to bankruptcy. On average, small businesses only last for 5 years.

This is even compounded now with all the Brexit related issues. Given that it would be more difficult now for the UK to trade with other European countries and hiring migrant workers, small businesses are essentially the ones that are gravely affected. Perhaps, a lot of people did not see this coming when they voted for Brexit and now, a lot of them are reeling from all the possibilities once the deals are finalised.

Relaxing the regulations

To drive business growth, it is important that strict regulations be relaxed. The government should also try to negotiate a better deal with the EU so that even with Brexit, these small businesses won’t be hit hard. Almost all businesses in the country fall under the SME category and they will most likely end up in a bad situation if the government will just let Brexit take place without proper protection for these business owners.

Allowing businesses to thrive

Perhaps, at some point, it is impossible for some business owners to recover. They might have run out of creative ideas to let the business continue to thrive. They might also be in a difficult spot financially. If you are one of these business owners, you have to start looking at the idea of selling your business. Perhaps, there are people out there who are interested in buying your business and save your from economic distress.

On the other hand, if you have financial capacity, consider buying a business. You can still save small businesses along with the people who were hired to work for the company. You just need to find the right business that you are passionate about so you can manage it well. You should also check the regulations again and see if you can work around them.


Interested in buying a small vibrant business and be part of the growing UK economy then get in touch and see how Hilton Smythe can help you find your dream business.

Need help with finance for your business? Hilton Smythe Finance can help you with that too, get in touch for a friendly, free no obligation chat about how we can help your commercial needs.