2014 at a glance - hiltonbairdfinancial.co.uk · - BIS, Business Population Estimates - ONS, Business Demography 2014 - RSA – Hilton-Baird Financial Solutions, SME Trends Index

Sources: Angels Den - Asset Based Finance Association (ABFA) - Bank of England - BIS, Business Population Estimates - ONS, Business Demography 2014 - RSA – Hilton-Baird Financial Solutions, SME Trends Index

2014 has been a good year for SMEs for many reasons: the economy is looking brighter, business performance is improving and confidence is growing. So as the year comes to an end we look back at the headline stats from the last 12 months.

2014 at a glance

SCALE

5million micro-businesses employing 0-9 people

96% of totalbusinesses

33% of totalemployment

In 2014 there were

5.2millionbusinesses in the UK

SMEs accounted for

over 99%of all UK businesses

This was up from

4.9millionbusinesses in 2013

19% of totalturnover

Bank lending to businesses fell to

£381.5 billion at the end of September 2014,the lowest level since June 2006

Half of SMEs believe that the level of funding support available to them from lenders and the government is

inadequate

Q3 of 2014 was the biggest ever for asset based finance with

£19.3 billion of funding provided to businesses

FINANCE

Half of SMEs turn to their bank manager for support when seeking a new funding facility50%

Sources of finance

56%existing cash flow

47%business credit cards

30%bank overdraft

29%asset finance

Three fifths of start ups rejected for traditional forms of funding in the last 2 years

50%

Profitability

Turnover

Contracts

of SMEs reported an increase in profitability

of businesses won new contracts

Confidence

of SMEs believe their business will expand

Employees

of businesses increased number of employees

of SMEs reported an increase in turnover

63%

55%

38%

41%

GROWTH

WINNING NEW BUSINESS35% of SMEs worry mostabout their ability to generate new business

LATE PAYMENT17% of businesses are

most concerned about the effects of late payment

CASH FLOW15% of businesses worry most about managing their cash flow

FUNDING10% of SMEs are most concerned about their ability to access funding

CHALLENGESof SMEs do not make it to their fifth birthday55%

Top concerns of SMEs include: