Value of UK SMEs reach £3 trillion
New research has found that the total value of UK SMEs has reached more than £3 trillion – with the average small business now worth £2.9 million.
The study by MarketInvoice found company valuation is something that two-thirds of owners consider a top priority and something they think about all the time.
Business owners cited their premises, product and people, as well as the financial health of their business as key factors that contribute to company value.
Despite the growth in the overall value of UK SMEs, the study showed that less than a third of businesses increased in value by more than 10 per cent in the last 12 months.
Those owners surveyed said that a lack of finance was the biggest obstacle to growth, with companies in the engineering, architecture and construction sectors struggling the most due to a lack of funding.
Only six per cent of businesses have used equity or venture capital investment, with the majority favouring invoice finance, followed by asset-based finance and finally traditional business loans, which made up just 10 per cent of funding for SMEs.
Despite the uncertainty over Brexit, more than half of UK SMEs hope to either open offices abroad or start exporting to global markets.