Despite persistent economic headwinds, the UK’s small and medium-sized enterprises (SMEs) are showing remarkable resilience, with the majority reporting growth over the last 12 months. New research from specialist SME lender Shawbrook reveals that 71% of SMEs have grown in the last year, with 21% reporting significant growth. This compares to only 46% of SMEs reporting growth in 2024, and only 13% reporting significant growth.
The data highlights a particularly strong performance among larger SMEs (100-249 employees), with 76% reporting growth over the last year, compared with 49% in 2024.
Key drivers behind this positive momentum include strong customer demand (32%), team expansion (29%), and investment in staff (27%). These factors point to a proactive SME landscape, where businesses are focused on building operational strength and customer relationships despite external pressures
These findings also suggest that as the job market opens up, small businesses will prove valuable contributors for investing in skills and people. This trend looks to continue as SMEs plan to make strategic investments to support continued growth. Almost half (48%) plan to upskill staff, while 25% will hire new employees, and 22% are planning premises upgrades- indicating a clear intent to build capacity and sustain momentum.
Neil Rudge, Chief Banking Officer, Commercial at Shawbrook, comments: “”It’s great to see so many businesses not just holding steady in tough conditions but actually growing and investing in their future. Politicians love to talk about growth – but it’s Britain’s SMEs that actually deliver it. They don’t need more speeches, they need real backing: fair tax, smart policy and access to funding that helps them build, hire and grow.
These findings are a good reminder that, even with wider pressures like the risk of a trade war and rising costs from things like minimum wage and National Insurance hikes, UK SMEs are still proving themselves to be dynamic, resilient and a vital part of the economy. While big business grabs headlines, it’s SMEs that keep the UK running – creating jobs, paying taxes and driving local economies”
- 71% of SMEs report growth in the last year, a quarter more than last year’s findings (46%)
- Key drivers of growth include strong customer demand (32%), team expansion (29%), and staff investment (27%)
- In the next 12 months, nearly half (48%) plan to upskill their staff, 25% plan to hire new employees, and 22% are planning to upgrade premises
Methodology
The research was conducted by Censuswide, among a sample of 500 senior financial decision makers (18+) (CFOs, FDs, MDs, CEOs) at or owners of Small and Medium Sized Businesses. The data was collected between the second of January 2025 and the 10th of January 2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
About Shawbrook
Shawbrook provides finance to a wide range of customers who value the premium experience, flexibility, and certainty we deliver. We are a purpose-led organisation, with a focus on delivering long-term sustainable value for all our stakeholders.
We have a diversified offering, with our innovative lending propositions tailored to meet specific customer needs in carefully selected markets across SME, Real Estate and Personal. Our innovative and specialist lending products range from complex structured credit facilities for growth-focused businesses to mortgages for professional landlords and property investors, as well as simple loans for consumers, delivered digitally. We fuel our lending through customer deposits, which we attract by delivering a premium experience, choice and consistently great value to smart savers.
Shawbrook Bank Limited is an operating entity of Shawbrook Group plc. Shawbrook Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the Financial Services Compensation Scheme.
Find out more at www.fca.org.uk or www.bankofengland.co.uk/pra
Visit www.shawbrook.co.uk and follow us on Twitter @ShawbrookBroker
