SMEs 'crucial' to economic recovery

19/July/2012

The UK's base of small to medium-sized enterprises (SMEs) have an important role to play in the development of the country's economy, it has been claimed.

Business coaching website Growyoursme.co.uk said small and medium firms "matter a lot".

Ed Percival, business coach at the website, said entrepreneurs looking to make UK company formations have an opportunity should they want to take it.

"An entrepreneur right now can see an opportunity and the thing about this climate is if you can make your business work now, it won't be very long before the economy starts to show signs of recovery," Mr Percival said.

"The recent unemployment figures got better for last month, for the fourth month in the row. That's a lead indicator that shows you that things are getting better. "

He said the economy is currently in a "hesitant, uneven" recovery where some sectors are doing well, some not so well.

But SMEs, accounting for about half the value in the economy, matter a great deal to the UK's economic growth, Mr Percival said.

"SMEs really matter a lot. The government has been, in my view, really slow to respond to helping the SME. They came out with things like trying to force the banks to lend them money and so on and so forth."

The number of people starting a business has increased in the UK since the 2008-09 recession, according to Companies House figures.