Spotlight falls on SMEs – the driving force behind the North West’s economy

Small and medium sized enterprises are playing a key role in the continuing resurgence of the North West’s burgeoning economy.

Everyone from government to business leaders recognises the role, impact and contribution SMEs make to the economy.

And this week TheBusinessDesk.com is running a series of articles, features and comment pieces taking a close look at the opportunities, challenges and issues facing SMEs in the North West.

The series is being run in conjunction with law firm JMW – which is the fastest growing independent law firm in the region.

The week-long event is being co-sponsored by the GrowthCo and ETC Tax.

JMW is one of the biggest success stories of the region and the firm works with businesses of all shapes and sizes across the North West.

The region is home to some of the fastest growing and most dynamic companies in the country thanks to its flourishing technical and digital sector.

According to statistics released earlier this year by the London Stock Exchange companies in the region are growing three times faster than the national average.

The average annual revenue growth currently stands at 232 per cent while the national average is 71 per cent.

And the London Stock Exchange Group has identified 91 companies in the North West as crucial to future UK economic growth and job creation.

Philip Hammond is a big believer in supporting SMEs.

The Chancellor of the Exchequer said: “Small businesses are the backbone of the British economy with a combined annual turnover of £1.9 trillion and employ 60% of private sector workers outside of London.

“That’s why, whether they are family run firms or tech start-ups, we are supporting high growth SMEs to achieve their potential.”

Around 39 SME in Greater Manchester alone have been highlighted as the most dynamic in the UK.

The vast majority of businesses fall into the SME category not just nationally but also in the region.

There are 530,000 firms in the North West and just 1,000 are not classed as SMEs.

According to official statistics there are currently more than 529,000 SMEs operating in the North West with the greatest concentration of them in Greater Manchester followed by Lancashire and Merseyside.

All of this means that the region has one of the largest concentrations of small and medium sized businesses in the UK outside of London and the South East.

The five fastest-growing sectors in the region are business administration, professional, scientific and technical industries, IT and communications, health and transport and storage.

And the Government has identified industry and technology as a key sector for the future.

The Made Smarter North West programme, which was launched last month, is set to engage with 3,000 SME manufacturers across Cheshire and Warrington, Cumbria, Lancashire, Greater Manchester and the Liverpool City Region to boost productivity.

Companies that get involved in the project will get the chance to access match-funded support and advice regarding how technology could revolutionise their manufacturing processes and reap the benefits of more efficient production.

Business secretary Greg Clark said: “From pharmaceuticals to aerospace, the North West manufacturing sector has earned a global reputation for excellence and expertise, with manufacturing jobs accounting for one in ten of the region’s total workforce.”

Despite the optimism and government support the same issues affect SMEs and will be raised in our week-long focus.

These issues include staff recruitment and retention, access to funding and, most pressing of all, the ongoing uncertainty surrounding politics and Brexit.

Our discussion and debate will put the focus on many of these issues.