What smart SME data reveals: SMEs remain pressured but resilient

SMEs are the lifeblood of the UK economy, accounting for 60% of employment and almost half of business turnover. They drive economic growth, sustain communities and develop the skills of the local workforce. Yet getting near real-time insight into their performance is a policy blind spot.

So can the smart data these businesses produce every day – on profitability, workforce, investment and growth - be harnessed for a bigger purpose: more timely, high quality and representative picture of the UK economy and the economic health of the UK’s regions and industries. This approach complements traditional labour force and productivity indicators by showing what businesses are actually doing in near real-time, not just what surveys suggest.

At an event in London on Wednesday 18th March, Sage launched their first Annual SME Workforce Pulse report, produced in collaboration with Smart Data Foundry and CEBR. The Sage Annual Workforce Pulse is part of Sage’s Data for Good programme, and leverages anonymised data from hundreds of thousands of SMEs to generate near real-time insights into the challenges and opportunities for SMEs and how they can be better supported by policy.

“For me, this is why the SME Pulse matters. Better decisions start with better visibility and in uncertain times, confidence comes from clarity.”

- Steve Hare.
CEO, Sage

Themes and trends in the SME workforce

The 2026 Sage Annual Workforce Pulse shows that SMEs may be under pressure but they are far from fragile; revenues and profitability are improving but weak hiring and investment point to underlying uncertainty in the macroeconomic environment.

The report analyses trends across three themes: