Last month’s Budget contained numerous announcements aimed at bolstering the Government’s Northern Powerhouse and ‘devolution revolution’ initiatives. However, just several days on from the Chancellor’s speech, new research revealed that much work is still to be done.
According to a survey of 1,000 businesses by MarketInvoice, over half (56%) said they do not feel ‘the Government is genuinely committed to increasing investment in Northern areas to create a Northern Powerhouse’. The findings come one month after a study by the Federation of Small Businesses revealed that 21% of SMEs do not even understand what the concept means in practice.
The research suggests some significant weaknesses in one of the Government’s flagship business initiatives. With Britain’s SME community thriving, it is crucial that business growth is as varied as possible to sustain long-term progress – this requires businesses to flourish in a wide range of sectors and, furthermore, across all regions of the UK, not just London.
SMEs make up 99% of the UK’s private sector, employing 60% of its workforce and contributing £1.8 trillion to the nation’s economy. This collection of 5.4 million businesses is driving Britain back towards economic prosperity. However, it is vital that we examine which industries are being catalysed by small businesses, and which parts of the country boast the highest business birth rates. Only by doing this can the correct support – from both investors and the Government – be directed to the right businesses.
IW Capital’s new research will provide important insight into Britain’s SME landscape. Specifically, our Sectors that Scale research, due to be published over the coming weeks, will reveal:
- The five sectors that are showing remarkable growth – all of which are being driven by exciting and innovative SMEs
- How each part of the UK compares when it comes to business creation, including a forecast of many new SMEs will emerge in different regions between now and 2020
As the Government looks to add more substance to the Northern Powerhouse initiative, the timely report and infographic will demonstrate the vertical markets and geographic regions that require greater support. It will also highlight which markets could be a viable option for investors.
We look forward to sharing IW Capital’s Sectors that Scale research with you soon.