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Sme2014

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Sme2014

  1. 1. Small and Medium Sized Enterprises 2014 Some Facts and Figures C W Mobbs May 2015
  2. 2. Introduction • For the purposes of this analysis, small and medium sized enterprises are defined as those with less than 250 employees (large enterprises have 250+) • Small enterprises have less than 50 employees; medium ones between 50 and 249 • An enterprise is defined as a profit, non-profit or government organisation Data Source: Department for Business Innovation and Skills ‘Business Population Estimate for the UK and Regions, 2014”, unless otherwise stated.
  3. 3. SMEs • UK SMEs accounted for 99.9% of all private sector enterprises, 60.0% of private sector employment and 46.8% of private sector turnover • Enterprises comprising one employee director and self employed owner-managers alone accounted for 75.6% of all enterprises, 17.3% of employment and 6.6% of turnover • Small enterprises alone accounted for 99.3% of all enterprises, 47.9% of employment and 33.2% of turnover • Turnover in SMEs is estimated at £1,647 bn, £69 bn (4.4%) higher than 2013
  4. 4. UK Enterprises (1) • There are 5,332,875 enterprises in the UK economy • Of these, 98.3% are private sector organisations, realising 93.4% of whole economy turnover. • A further 0.2% are Central or Local Government, employing 15.8% of total employment and 1.5% are non-profits, employing 5/.9% of total employment.
  5. 5. UK Enterprises (2) Enterprises Employment Turnover All enterprises 5,332,875 32.2 m 3,771.5 bn Private sector 98.3% 78.3% 93.4% Central and Local Government 0.2% 15.8% 5.0% Non-profit Organisations 1.5% 5.9% 2.0%
  6. 6. Private Sector Enterprises Numbers • 75.6% of enterprises have no employees (ie, consist of sole director or self-employed owner-manager) • 0.06% of organisations have more than 500 employees • Small enterprises account for 99.3% of enterprises and medium enterprises for 0.6% No of Employees Enterprises 5,243,135 0 75.6% 1-9 19.9% 10-49 3.7% 50-249 0.6% 250-499 0.1% 500+ 0.1%
  7. 7. Employees by Enterprise (1) 17.3% of all employment is in enterprises comprising a sole director or self-employed owner-manager
  8. 8. Employees by Enterprise (2) • Total employment stands at 25.2 m • 17.3% of total private sector employment is in enterprises comprising sole directors or self-employed owner-managers • Small business with between 1 and 49 employees account for 30.6% of total turnover • Medium sized enterprises account for a further 12.2% • Large companies account for 39.9%
  9. 9. Enterprises and Turnover (1) Turnover of large enterprises accounts for 53.2% of all private sector turnover
  10. 10. Enterprises and Turnover (2) • Total private sector turnover amounts to £3,521.3 bn • Despite having 75.6% of all private sector enterprises, organisations with a sole director or self-employed owner- manager only produced 6.6% of turnover • Small business with between 1 and 49 employees account for 26.7% of total employment • Medium sized enterprises account for a further 13.5% • Large companies account for 53.2%
  11. 11. Enterprises and Legal Status Of all private sector enterprises, 28.8% are companies, 8.7% are partnerships, and 62.5% are sole proprietorships (by number) Of all private sector turnover, 92.3% is realised by companies, 2.9% by partnerships, and 4.8% by sole proprietorships (by turnover)
  12. 12. Enterprises and Industry (1) Enterprises Employment Turnover Private sector enterprises 5,243,135 25.2 mn £3,521 bn Agriculture, Hunting and Forestry; Fishing 2.9% 1.8% 1.1% Mining and Quarrying; Electricity, Gas and Water Supply 0.6% 1.4% 6.6% Manufacturing 5.0% 10.3% 15.7% Construction 18.1% 8.0% 6.8% Wholesale and Retail Trade; Repairs 10.3% 19.6% 36.0% Accommodation and Food Services 3.4% 8.1% 2.4%
  13. 13. Enterprises and Industry (2) Enterprises Employment Turnover Transport and Storage 5.4% 5.5% 4.8% Information and Communication 6.1% 5.0% 5.9% Financial and Insurance Activities 1.6% 4.4% N/A Real Estate Activities 1.9% 1.8% 1.3% Professional, Scientific and Technical Activities 14.9% 9.4% 7.4% Administration and Support Service Activities 8.0% 10.5% 5.5%
  14. 14. Enterprises and Industry (3) Enterprises Employment Turnover Education 4.9% 2.1% 0.6% Human Health and Social Work 6.4% 6.8% 1.9% Arts, Entertainment and Recreation 4.5% 2.6% 3.0% Other Service Activities 5.9% 2.7% 0.9%
  15. 15. Enterprises and Industry (4) • In Financial and Insurance Activities, only 18.3% of employment was in small enterprises, in Agriculture, Fishing and Forestry it was 87.4% • 73.2% of Financial and Insurance Activities employees are in businesses employing more than 250. • Of the 33.3% of turnover in small enterprises, it also varies in sector – 7.6% in Mining, Quarrying and Utilities to 83.7% in Agriculture, Fishing and Forestry • 92.9% of businesses in the Education sector are sole owners/directors, compared to 29.1% in the Accommodation and Food Service sector.
  16. 16. Enterprises and Country Enterprises Employment Turnover Private sector enterprises 5,243,135 25.2 mn £3,521 bn England 87.5% 88.0% 90.4% Wales 4.1% 3.3% 2.2% Scotland 6.2% 6.7% 5.8% Northern Ireland 2.3% 2.0% 1.6%
  17. 17. Enterprises and Region Region Enterprises Employment Turnover North East 2.9% 2.7% 1.8% North West 9.7% 9.2% 7.9% Yorkshire and Humberside 6.7% 8.0% 6.0% East Midlands 6.3% 7.3% 5.7% West Midlands 7.9% 8.3% 7.2% East of England 10.5% 10.7% 9.4% London 17.8% 19.7% 30.2% South East 16.0% 14.5% 16.9% South West 9.8% 7.5% 5.2%
  18. 18. Enterprises and Location (1) • London had more than 930,000 private sector enterprises, more than any other UK region.The South East had a further 837,000 companies. Compare this to Scotland,Wales and Northern Ireland who had a combined 655,000 • London and the South East together account for about a third of all private sector enterprises in the UK • Most of the regions in the UK experienced growth in the number of enterprises between 2013 and 2014.The biggest increases were in Wales (12.4%), North East (11.2%) and London (11.1%), and the largest fall was in Scotland (-0.9%)
  19. 19. Enterprises and Location (2) • All regions and countries saw rises in levels of employment save for Scotland (-1.4%).The largest increase was in Wales (6.0%) • London and the South East saw the largest growth in turnover (12.4% each).The East of England saw the only decline (-1.9%) • In the UK, there are approximately 1,007 businesses per 10,000 adults, ranging from 701 in the North East to 1,391 in London
  20. 20. Enterprises - Further Analysis The following slides utilise information from the UK Innovation Survey, 2013, Department for Business Innovation and Skills The survey elicited responses from 14,487 enterprises, all of whom had 10+ employees Responses were from the UK as a whole
  21. 21. Enterprises and Innovation(1) Enterprises engaging in innovation activity, by size and type of activity 10+ Employees 10-250 employees 250+ employees Innovation Active 45% 45% 50% Product Innovator 18% 18% 23% Process Innovator 10% 10% 15% Product and Process 7% 7% 10% Product or Process 2% 21% 28% Wider Innovation 37% 37% 39%
  22. 22. Enterprises and Innovation(2) • Only 45% of organisations report that they are innovation active • More businesses are product innovators than process ones (18% and 10% respectively) • Only 7% of all organisations are both process and product innovators, but 10% of large organisations are • 22% of organisations are either process or product innovators
  23. 23. Activities and Innovation(1) Top 8 Reasons to Innovate All Improve quality of goods and services 36% Replacing outdates products or processes 31% Increase market share 29% Increase range of goods and services 28% Increase value added 21% Entering new markets 21% Meet regulatory requirements 20% Reducing costs per unit 18%
  24. 24. Activities and Innovation(4) • When questioned as to reasons not to innovate (non-innovators only), responses included that there was no need due to market conditions (11%); followed by the absence of need due to previous innovations (5%); and the existence of other factors constraining innovation (3%).The other 68% said none of the above applied in their case
  25. 25. About Innovation for Growth Founded in 2010, Innovation for Growth is a business consultancy firm that specialises in the provision of advice to small and medium sized enterprises.We work with companies from all sectors undertaking innovation audits, and providing innovation advice so our clients can maximise their innovation capabilities and achieve their growth aspirations. We also undertake desktop, business research and analysis, enabling our clients to concentrate on running their business. For more on our services, please download our Corporate Services Document. © 2015 Innovation for Growth
  26. 26. About Innovation for Growth Founded in 2010, Innovation for Growth is a business consultancy firm that specialises in the provision of advice to small and medium sized enterprises.We work with companies from all sectors undertaking: innovation audits, innovation advice and the provision of strategy advice so our clients can maximise their business capabilities and achieve their growth aspirations. We also undertake desktop, business research and analysis, enabling our clients to concentrate on running their business. For more on our services, please see our website: www.innovationforgrowth.co.uk © 2011 Innovation for Growth

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