Capital Economics‘ recent research, sponsored by SME lender iwoca, reveals a strong link between loan accessibility and revenue growth for UK’s small to medium enterprises (SMEs). The research shows that SMEs securing a loan can boost their monthly revenues by nearly 20% on average. This significant increase highlights the crucial role of accessible financing for these businesses’ growth and stability.
SMEs play a vital role in the UK’s economy, making this finding particularly significant. SMEs are responsible for three-fifths of employment and nearly half of the turnover in the UK private sector. As such, their success directly influences the country’s economic health. Additionally, capital access is a key factor in business growth and survival, especially for SMEs.
Research Methodology
The study used data from iwoca’s customers’ current accounts. This data-driven method ensures the findings are based on real-world figures, not theoretical assumptions. By focusing on actual customer data, the research paints a clear, accurate picture of loan impacts on SME revenues.
The research results could have widespread effects. They underscore the importance of financial support for UK’s SMEs. Moreover, they emphasize the essential role lenders like iwoca play in fostering these businesses’ growth and development.
In the face of ongoing economic uncertainty due to factors like the COVID-19 pandemic and Brexit, loan accessibility can often be the deciding factor between growth and stagnation or even survival and closure for SMEs. This makes the findings of the Capital Economics research, sponsored by iwoca, even more pertinent for policy makers, lenders, and SMEs themselves.
