The SME sector plays a very significant role by supporting the bigger business sector by providing support services in the form of products and services-up costs involved in these sectors. financial firms are under-represented in the SME sector as a whole. It is predictable that in terms of worth, the sector is held responsible for about 39% of the manufacturing output and around 33% of the total export of the country. The major benefit of the division is its employment potential at low resources cost. As per existing data, this sector employs an expected 31 million personnel spread over 12.8 million companies and the labor force in the SME sector is predicted to be nearly 4 times elevated than the large enterprises. SMEs play a very important role in the economy, providing new ideas, goods, services, and jobs (Johnson 2007). UK’s three-point-seven million SMEs account for approximately 40% of our GDP and have an annual turnover of one trillion pounds. Employing over 12 million people in the UK, they also account for 85% of the 2.3 million more jobs formed by new businesses in the private sector between 1995 -1999 and more than 50% of the 3.5 million jobs added from growth over the same era. SMEs that engage themselves in manufacturing tend to be bigger, whereas those involved in business and monetary services or the building industry tend to be lesser. Women can now run about a quarter of UK enterprises, slightly up on 10 years ago. Women also own smaller SMEs and incline to the service sector. Data also show that firms that innovate more constantly and quickly employ more employees, insist on higher skills, pay high salary and offer more firm prospects for their labor force. Across the UK, between 30 and 60 % of the entire SMEs sector are known to be innovative, of whom only a small share is technology-based. Regardless of sector, innovators grow faster. Self-motivated entrepreneurs with the spirit of inventive SMEs have in history, naturally been male, aged 40-50, usually have a university degree, regard themselves to be trained professionals and rate themselves most highly on skills associated with general managing activities.
The Role of Small and Medium Enterprises in the UK