SMEs worth billions to the economy

The new research by the Leeds-based bank looked at the economic impact and involvement of SMEs on their local areas.

Its survey found that more than half – 57 per cent – used suppliers all or mostly from within a 10-mile radius of their business.

According to the research, more than half of SMEs are sourcing from within 10 miles, and a further 30 per cent are looking no more than 25 miles away.

In addition, those surveyed stated that half the business they do is with local customers – people from within 10 miles – suggesting that they are bringing in billions of pounds to their economies from outside the area.

Combined, SMEs across the UK turn over around £1,500bn each year. With around two-thirds of that estimated to stay in the immediate vicinity, Yorkshire Bank calculates that the impact of this local investment is around £1,000bn for the regions.

Regional director Alan Young said: “These businesses may be small, but they are responsible for almost two thirds of jobs and half the turnover of all British business.

“The success of these small businesses is the key to growth.”