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The value of UK SMEs is falling according to research

By Dan Wilson November 22, 2017 - 6:44 am

A survey of UK SMEs and their valuations over the past two years by Bizdaq shows that overall business valuations are falling. But they also see significant regional and sector difference too.

You can check out the full sized graphic here for full details.

UK SMEs

Here are some of the headline conclusions. The average value of a small business in the UK is falling with London experiencing a large drop in the value of its businesses. The South is performing better than the North in general. Manufacturing businesses have grown in value by nearly £100,000 in a year.

Sean Mallon is the CEO of Bizdaq and says: “It’s frustrating to see that small businesses are reducing in value across the UK, leaving the nations’ small business owners with diminishing levels of return on their hard work and investment. In a period of economic uncertainty however, this is not unexpected.”

“It’s interesting to see the differing values from region to region, and surprising how only short geographical boundaries can make a large difference to a business’ value. London in particular has seen a dramatic swing in values over the past year.”

“Profitability decreases in a small business is often attributed to an increase in its variable costs, such a business rates or utilities. With this being the case, I would urge the government to work harder to relieve the strain on small business owners and allow them to make a fair return on their hard work. This should include allowing them to protect their investments through tax allowances when exiting their small business.”

Part of the problem here is economic uncertainty and the UK has experienced some challenging times since 2007 and now the Brexit situation doesn’t much help. But there could be measures from the UK government to assist. In particular a review of the Business Rates hike could be a useful part of today’s Budget from Philip Hammond to help UK SMEs.

  • Stu
    3 weeks ago

    If you add up the percentage values it looks like it is well UP??
    Might not be the best way of looking at it but I guess that because London is down we should all be afraid.
    London, London, London – like it’s the centre of the universe!
    Give me a break.

  • Ian A
    3 weeks ago

    It’s tough times. Rising prices, Brexit hitting disposable incomes and increasing online competition from amazon and china sellers (in retail, though this won’t apply to all businesses).

    It’s not all doom and gloom but you can’t afford to take your eye off the ball

  • SAM
    3 weeks ago

    I should mention there is more to Scotland than Edinburgh and Glasgow by the way. We are in a big blank SPACE.

    Is is any wonder, how on earth are you supposed to get ahead when you are dealing with tax dodgers like eBay and Amazon, these types of companies are the main issue of our time.
    We are in the scrap to the bottom and cheapest price WINS economy. Rising prices and falling wages, poor employment prospects for many people. I know people who have not seen their wages rise in 10 years.
    It is surprising any SME can get ahead, our so called Government does nothing to invest in our own companies but wants that “cheap Chinese Money”.
    Plus Brexit is slowly turning into a total nightmare. Without our EU markets we are gone.

    • northumbrian
      3 weeks ago

      there’s more to the north east than sunderland,
      more to wales than cardiff,
      which shows that surveys are worth nowt
      and can be manipulated or presented in all manner of ways

  • 3 weeks ago

    Bradford is doing well, since it moved from Yorkshire to Lancashire

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