Q4 Sage report reveals Perth is the third fastest growing city in the UK
UK Small Businesses show resilience amidst economic pressures, new Sage Small Business Tracker reveals
Smart Data Foundry, in collaboration with Sage and the Centre for Economics and Business Research (Cebr), has released the latest Sage Small Business Tracker, providing vital insights into the financial health of small and mid-sized businesses (SMBs) across the UK.
The Tracker analyses anonymised Sage Accounting and Payroll data from over 130,000 UK SMBs, offering a real-time picture of how businesses are navigating the current economic climate. Covering SMBs across all UK regions, including Northern Ireland, Scotland, and Wales, the dataset spans businesses with annual revenues ranging from £0 to over £200,000+.
Q4 2024 – Key Findings
The latest findings highlight the resilience and adaptability of small businesses, despite facing a challenging economic landscape:
- Small business profits continue to grow year over year, but at a slower pace. In Q4, profit growth eased to 7.3% year over year, marking the second consecutive quarter of slowdown from 8.2% in Q3 and 8.6% in Q2. Meanwhile, productivity has declined by 0.9% year over year.
- In response to economic uncertainty and high borrowing costs, small businesses are strengthening their financial positions. Over the past year, cash reserves have increased by 3.2%, while debt levels have fallen by 9.7%, reflecting a cautious yet strategic approach to long-term stability.
- Encouragingly, small businesses are still finding ways to grow. Real revenues have risen by 2.5%, marking the third consecutive quarter of growth, while operating costs have decreased by 0.4%—demonstrating their ability to enhance efficiency despite financial pressures.
These figures reinforce the adaptability of small businesses and their role as a driving force behind the UK economy. However, continued support, through both smart policy and business-friendly initiatives will be crucial to sustaining this momentum.
Supporting Small Business Growth
As a leading organisation in financial data for public good, Smart Data Foundry is committed to providing insights that help shape policy and support SMBs. By working in partnership with organisations like Sage and Cebr, we continue to uncover trends that inform decision-makers, drive innovation, and empower small businesses to thrive.
Steve Hare, CEO of Sage, commented:
"Small and mid-sized businesses - the backbone of the UK economy – are proving their resilience. While they face a cost-heavy few months ahead, their ability to manage finances and drive revenue growth is inspiring.
Given the current economic landscape, advocating for policies that support their growth is more important than ever."
Rui Cardoso, Head of Public Sector Engagement at Smart Data Foundry, said:
“These insights provide a crucial evidence base for policymakers and business leaders looking to support small enterprise. By understanding the challenges and opportunities they face, we can shape better policies and interventions that drive sustainable growth and resilience in this vital sector of the UK economy.”
