Study reveals three in five small businesses experienced growth last year as exporters continue to reap dividends

Small and medium-sized businesses are becoming a growing force in the UK economy, a new study claims, as three in five such firms experienced a boost in turnover in the last financial year.

Barclays research reveals small firms a “growing force” in UK economy

Research conducted by high-street bank Barclays found that of the 62% of firms that saw a boost in revenue, this increased by an average of 14%, or £52,500.

Businesses on the smaller end of the scale saw the most dramatic growth, reporting an 18% increase in turnover on average. Just over one in 10 small and medium-sized firms saw a substantial increase in growth of 21% or more.

Barclays said the research highlighted the growing importance of small and medium-sized firms to the UK economy, as the economic recovery continues to gather pace with GDP increasing by 0.9% in the second quarter of 2014.

The research also found a substantial disparity between exporting firms and firms that did not export. More than a quarter (27%) of exporters reported year-on-year growth of more than 40%, and turnover amongst exporters in the last financial year grew by an average of 17%, 3% higher than the national average.

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