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SMEs in profit at 2007 levels

The number of SMEs making a profit has returned to pre-financial crisis levels in the last 12 months, according to research by the Department for Business, Innovation and Skills.

The annual Small Business Survey shows that 78% of SMEs made a profit or surplus in the 12 months, up 6% from 2012.

This is the highest level of profitable firms since 2007/08.

The survey of more than 4,000 SMEs also shows that firms are performing well in other aspects:

  • 40% reported an increase in turnover during the last 12 months
  • 51% expect to increase their turnover over the next year
  • 22% have taken on more staff in the last 12 months
  • one third are planning a recruitment drive in the next 12 months.

Business Minister Matthew Hancock said:

"After the biggest recession in peacetime history, it's now clear to see that our long-term plan is turning the economy around.

"Small businesses are leading our economic recovery and we have thrown our weight behind them, like never before.

"There really has never been a better time to start a business."

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