The number of SMEs making a profit has returned to pre-financial crisis levels in the last 12 months, according to research by the Department for Business, Innovation and Skills.
The annual Small Business Survey shows that 78% of SMEs made a profit or surplus in the 12 months, up 6% from 2012.
This is the highest level of profitable firms since 2007/08.
The survey of more than 4,000 SMEs also shows that firms are performing well in other aspects:
- 40% reported an increase in turnover during the last 12 months
- 51% expect to increase their turnover over the next year
- 22% have taken on more staff in the last 12 months
- one third are planning a recruitment drive in the next 12 months.
Business Minister Matthew Hancock said:
“After the biggest recession in peacetime history, it’s now clear to see that our long-term plan is turning the economy around.
“Small businesses are leading our economic recovery and we have thrown our weight behind them, like never before.
“There really has never been a better time to start a business.”