Small businesses in the North East are showing significant improvements in productivity and profitability, according to a recent survey.
Although they perform below the national average, their growth surpasses that of London and the South East, demonstrating their resilience and innovative capabilities.
Small businesses in the North East are witnessing notable growth in profitability and productivity, despite not matching the national average. The latest findings reveal an average profit increase of 8.8% between April and June, a figure that, while below the national average of 9.5%, surpasses the performance in London and the South East. These statistics underscore the resilience and adaptive capabilities of smaller firms in the region.
“This quarter’s tracker showcases the robust financial performance of small businesses in the UK. It’s clear that small businesses are not only adapting but thriving,” commented Derk Bleeker, highlighting their crucial role in the economic recovery.
This expansion is further highlighted by the growth in overheads slowing down, enabling more businesses to retain higher profit margins.
Despite these issues, sectors such as retail and construction saw positive developments during the summer, which might offer a glimmer of hope for sustained recovery.
With the overall economic picture improving, albeit slowly, the pressure remains on small businesses to maintain these efficiencies. Their continued focus on cost management and innovative solutions will be pivotal in sustaining growth.
Kelly Jordan emphasized, “While the overall economic picture has improved, the market remains a challenging one.”
The future outlook for small businesses in the North East remains cautiously optimistic. The traditional pre-Christmas trading period is anticipated to be a critical time for these businesses. If the positive trends in retail sales and construction output continue, they could provide the much-needed boost to counteract previous months of sluggish performance.
Continued innovation and effective cost management will be essential in maintaining this positive trajectory.
The productivity and profitability increases among North East small businesses showcase their resilience and adaptive strategies amid economic challenges.
Continued innovation and effective cost management will be essential in maintaining this positive trajectory.