High records of income for UK SMEs
The economic recovery is having a positive impact on SMEs across the UK, with the highest levels of income being reported since 2007.
Analysis from Barclays Business Banking has shown that the annual growth rate experienced in Q4 of 2013 was also the strongest since the turn of the century.
It means income at the end of 2013 was higher than at any point since the recession hit and provides further evidence that many businesses are recovering from the financial crisis.
Meanwhile, data on the total quarterly income for Barclay’s small business customers in Q4 revealed a growth rate at its strongest since Q1 2000, with current growth 17% higher than 14 years ago.
It comes at a time when the economy is growing at its fastest rate since 2007, with income levels for SMEs currently 3.4% above their recession peak, seen in Q2 of that year.
UK SMEs move ‘out of the shadow of recession’
The education sector, health and professional services saw the largest increases in income levels, rising by 41%, 28% and 23% respectively.
“The strength of income growth among customers in 2013 shows how significant last year was in marking a sustained recovery in the wider small business population,” said Sue Hayes, managing director for Barclays Business Banking.
“UK SMEs are slowly but surely stepping out of the post-recession struggle and …there is light at the end of the tunnel for these businesses that are so essential to our economic prospects.”
However, the possibility of receivership or requiring business recovery measures remains for some companies, as the income growth is not recognised across all sectors of work.
Small businesses in London saw the biggest income rises in 2013 with a rise of 9%, while businesses in the North West also saw growth of 8%.
It highlights the vast differences in experience noted by businesses that were spread out across many parts of the UK.
By Phil Smith