News / SMEs
Report reveals decline in business health of South West SMEs
Bristol ranks just 17 out of 25 cities in terms of SME (small and medium enterprise) population expansion, according to a recent report.
CYBG’s latest SME Health Check Index reveals that growth in the sector has been slower than average, with the South West as a whole showing the second weakest expansion across the UK.
The region fell by more than 12 points on the index in the first quarter of 2019, with commentators blaming a falling rate of employment growth, a spike in the number of businesses operating below capacity and low confidence as the Brexit chaos continues.
Growth in SME population, South West, 2014 – 2018. Source Inter-departmental Business Register Cebr analysis
While the outlook appears to be poor, the figures still represent a 12 per cent increase in the number of SMES in the region between 2014 and 2018.
Bristol has the fourth largest share of SMEs operating in the information and communications sector, and this field was also a major source of growth – with a 19 per cent increase in the number of businesses specialising in computer programming activities since 2014.
The report, published in partnership with the Centre for Economics and Business Research, also indicates there has been “healthy growth” in the number of SMEs operating in scientific research and development and financial services.
Gavin Opperman, group customer banking director at CYBG, said: “The latest SME Health Check Index paints a picture of resilient SMEs despite low confidence and a reluctance to borrow.
“We expect that a future uptick in confidence will increase willingness to borrow to fund growth.
“Previous deep dives into the city information has given us some rich insight into the regional picture, so this time we have chosen to take a closer look at how business creation has evolved on a city-by-city basis.
“It’s concerning to note the South West had the second weakest expansion in SME population with a growth of 12 per cent over the past four years, which is due in a large part to the shrinking pool of SMEs operating in the wholesale and retail sectors.
“The challenges continue for SMEs and we are ready to support our customers through this difficult time.”
Read more: South West scale-ups struggling to secure investment
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