Warrington is fast becoming known as the ultimate place for SMEs and it’s a reputation that is well deserved.
It began less than 2 years ago, when Warrington was revealed to be the UK’s SME hub, with businesses in the area experiencing the highest levels of growth. It fought of big competition for the title, including London, which came in at 5th place.
It was crowned for several reasons, including low rent and good access to digital services, which can have a large impact on cash flow and thus, business survival rates.
Then, last year in 2017, it was announced that SMEs in the Warrington and Cheshire area would benefit from a £4 million training scheme. This was designed to provide small businesses with a highly skilled workforce and safeguard small businesses for the future.
Move forward to 2018 and it seems that Warrington is still a thriving location when it comes to new and small businesses.
Growth of SMEs in the UK
However, Warrington is not alone in its SME growth, with Britain known for its flourish entrepreneurial spirit – this even in the face of Brexit.
In fact, small and medium sized businesses have continued to thrive since the announcement of Brexit. Even as the deadline looms closer, it appears that SMEs remain optimistic.
In a recent survey of 150 UK SMEs, 80% stated that they have planned for and predicted growth within 2018. This is a very promising figure, particularly when businesses across the country are plagued with worries about the economy, workforce and productivity.
However, while they remain confident and proactive in their approaches, small British businesses are currently facing a common issue: lack of funding.
UK Wide Funding Issues
Although small and medium enterprises boost the economy by approximately £200 billion per year, growth is restricted due to limited access to funding. This is particularly troubling as the majority of businesses that fail, due so due to cash flow and finance related problems.
In the UK, most SMEs require additional funds in order to scale up and grow, whether this is by hiring staff to expand into new areas, or offering a better range of services to customers, like next day delivery. However, research has highlighted that more than 50% of small and medium businesses do not have the funding required, potentially stunting growth.
Cash Injection for Warrington SMEs
Fortunately, Warrington SMEs are in a better position. This is due in part to the Cheshire and Warrington Growth Hub. Through funding, this initiative helped more than 50 SMEs in the last two years, but it’s set to provide financial assistance to many more.
With new grants announced, small and medium enterprises in the area could benefit from up to £18,000 in funding which can be used to grow, hire new talent, or utilise new software and systems.
The second of the Hub’s grant scheme, it has been designed to create further jobs within Warrington and Cheshire, helping SMEs to flourish.
As such, while SMEs in this area are already outperforming the rest of the UK, this additional cash injection could see many others achieving success.