Sage, the leader in accounting, financial, HR and payroll tech for small and mid-sized businesses (SMBs), has launched its third annual survey – ‘Small Business, Big Opportunity’, which reveals a bullish outlook among UK business leaders.
Amid rising costs, economic uncertainty, and escalating tax demands, UK SMBs have shown extraordinary adaptability. Since 2022, confidence amongst business owners has continued to build, with 83% optimistic about achieving business success in 2024. Nearly half (45%) reported revenue growth over the past year, while only 26% experienced a decline. This performance underscores their ability to thrive even in tough times, positioning them strongly for the year ahead.
Driving Growth Through Digital Transformation
A significant factor fuelling SMB confidence is their embrace of digital technologies as key growth drivers. Among those already using AI, 78% reported its importance to daily operations, while three quarters plan to invest further in AI within the next year—ahead of their European counterparts. UK SMBs are also more likely than their European peers to view adopting digital tools as a key contributor to their confidence. This tech-first mindset is empowering UK SMBs to stay competitive in a dynamic global market.
Building Confidence Through Efficiency and Productivity
Operational efficiency and cost management remain pivotal to SMB success, with 52% of businesses citing these as drivers of growth. Moreover, 79% of SMEs expressed satisfaction with their productivity, highlighting their ability to adapt and optimize.
Supporting Economic Growth and Job Creation
UK SMBs continue to serve as vital contributors to the national economy. Over the past year, 34% expanded their workforce. Their ability to innovate and meet customer needs has been instrumental, bolstering their revenue growth and securing their position as a cornerstone of economic progress.
Call for Government Support
While SMBs are driving growth, they emphasize the need for greater government action. From tax relief to affordable funding, business leaders see these measures as essential for unlocking further potential.
Steve Hare, Sage Group CEO:"UK SMBs are the lifeblood of our economy, and their resilience and innovation continue to inspire. At Sage, we are committed to championing their success, advocating for policies that support growth, and equipping them with the tools they need to lead the way in a rapidly evolving digital economy."
Dominique Harvey, Co-Founder at Seabass Vinyl, commented: “Our business is just over a year old, but we have been encouraged by strong customer demand and have ambitions to double our capacity in the next twelve months. Our focus is on growing our business and workforce whilst navigating the new financial landscape.”
The full report can be accessed here: https://www.sage.com/en-gb/company/digital-newsroom/2024/11/28/small-business-big-opportunity/
Notes to editors
Sage, in partnership with Strand Partners, conducted an online survey of 12,013 SMB business leaders in early October 2024. The markets included as part of this study are Canada, France, Germany, Ireland, Portugal, Spain, South Africa, the UK and the US. In each market, except the US (where a specific sample was included for those employing 250-500 people due to a different official definition of SMB), decision makers at businesses employing fewer than 250 people were targeted.
