-- 89% of SMEs are confident about growing their business in 2025, with
nearly 9 in 10 (89%) of these reporting that they feel part of their
local community.
-- 82% of SMEs aiming for growth expect to hire more people in 2025 -
though access to skilled labour and transport infrastructure identified
as key challenges to their expansion plans.
LONDON, Dec. 11, 2024 /PRNewswire/ -- A new study by Aviva highlights widespread optimism among UK small and medium-sized enterprises (SMEs) as they look toward 2025, with around nine in ten (89%) business decision-makers confident about their growth prospects for the year ahead.
The study also reveals enduring optimism among SMEs, with 85% confident that their businesses will grow over the next five years.
Community and local talent driving SME optimism
There is a strong link between SMEs with deep relationships within their local communities and a positive outlook. The study reveals that, of SMEs who are confident about growth in 2025, 9 in 10 (89%) feel part of their local community, while overall 75% of SMEs credit local community as contributing either a lot or a great deal to their business success.
The study also highlights the pivotal role of local employees in fostering this optimism and growth; access to local talent was identified as the greatest advantage of being part of a community. Over half (53%) of SMEs who feel responsible about the future prosperity of the local community employ local people, and 82% of those aiming to grow anticipate needing to hire more people in 2025. Overall, 91% of SMEs believe access to the right local skills is important for their future success.
Other benefits of being part of a local community include high customer loyalty among local people (38%) and working with other businesses in the area (33%).
However, the research from Aviva also highlights challenges that need to be addressed to support SME growth prospects.
Skill shortages cited as potential barrier to SME growth
Although hiring from the local community is essential for SME expansion, only around one third of SMEs (36%) strongly agree there's enough people with the right skills for their business in their community, revealing a potential skill gap that could hinder future growth ambitions. Micro and small businesses are marginally more impacted than medium-sized businesses, with 72% agreeing there is enough talent in the local community, compared to 80% of medium-sized businesses.
The research paints a picture of how access to relevant skills also varies by sector. While a greater proportion of SMEs in the IT sector strongly agree (51%) there is enough local talent available, there is less agreement among SMEs in manufacturing (31%), hospitality and leisure (29%) and financial services (32%).
This sector-specific gap suggests a need for targeted support in skills development and workforce training, particularly in industries experiencing acute shortages that could hinder their growth ambitions.
Infrastructure investment could drive business expansion
Local transport infrastructure, deemed essential for supporting growth, is also identified as a key area for focus. More than half (63%) of SMEs surveyed believe their business will grow to the point where they will need better local transport infrastructure in 2025.
Adequate transport for employees is revealed to be a top priority for SME owners, with 41% identifying this as critical to the future success of their business. The study also reveals that, over the next five years, 65% anticipate changing to the point where they will have increased reliance on more sustainable transport options. Specific priorities for local transport infrastructure include greater access to electric vehicle charging points (26%) and sufficient cycle lanes (21%) to support employee commutes.
These findings underline the importance of building robust infrastructure to support connectivity and facilitate business expansion, especially for SMEs reliant on regional supply chains.
How Aviva is supporting SMEs in 2025
Aviva is working to provide SMEs with resources, insights, and solutions to make the most of the opportunities ahead. Through a series of initiatives, Aviva is seeking to empower SMEs to capitalise on their strengths and position themselves for sustainable growth. For example:
-- Aviva's Commercial Intelligence Tool (CIT) uses data and analytics to
help identify where a business may be underinsured, have potential gaps
in cover and get personalised insights to help SMEs make informed
decisions;
-- Aviva's Sustainable Business Coach tool helps brokers to identify the
impact of businesses on the environment and wider society and helps
businesses to set sustainability goals and to measure progress against
targets;
-- SMEs with an Aviva Group Protection policy can help to keep their
workforce healthy through the complementary Aviva Digicare+ Workplace
App which provides a comprehensive blend of clinical services and
benefits to help employees prevent, detect and manage physical and
mental health problems(1).
-- Aviva partners with the Money Advice Trust to help strengthen the
financial resilience of businesses across the UK helping small business
owners to get access to free, independent debt advice. This
collaboration also seeks to improve small business owners' access to
support with business finance skills, by supporting the development of
new, free virtual learning under the Money Advice Trust's Building up
Business programme. This initiative reflects Aviva's focus on social
action and community financial resilience.
-- Aviva's corporate venture capital fund, Aviva Ventures, makes
early-stage investments in start-ups, many of which are UK SMEs, and
builds long-term relationships to help support them with expertise,
global reach and scale as they grow(2). Recent investments include
Norfolk-based nature restoration company, Nattergal.
-- Aviva is working with Business in the Community (BITC), as the Founding
Place Partner to help expand their long-term national place strategy to
support local communities and economies across the UK. This approach
brings together key local stakeholders such as community organisations,
local businesses and councils to create a strategic vision for long-term
change by breaking down barriers to education and employment, improving
housing and local facilities, and tackling wider inequalities throughout
the UK.
-- Aviva works in partnership with brokers across the UK to provide a
comprehensive suite of SME insurance solutions, spanning a wide range of
industry sectors. SMEs benefit from regional experts committed to
understanding their business requirements, providing risk management
guidance and protection if the worst should happen.
David Schofield, Sustainability Director at Aviva said: "SMEs are the backbone of the UK economy. Their growth is vital not only for economic stability but also for the prosperity of local communities across the nation. These survey findings underscore their determination and optimism, while also highlighting the challenges that could impact their growth.
Aviva and our partners are helping SMEs get ready for 2025 by providing a range of tools, resources and support to help overcome challenges and seize opportunities. By providing tailored advice and financial assistance, we're committed to playing our part in helping small businesses prepare for success in 2025 and beyond."
Notes to editors:
1. Aviva Ventures is Aviva's corporate venture capital fund, focused on
delivering returns through investments into early stage businesses that
bring Aviva new opportunities and insights into emerging technology and
customer trends.The fund focuses on investments that generate long-term
value creation as well as develop a strategic relationship. Investment
themes include customer wellbeing, mobility, sustainability, and the
opportunities created by new technology developments like Artificial
Intelligence.
2. The Aviva Digicare+ Workplace app is provided by Square Health and the
app and its services are non-contractual benefits which Aviva can
withdraw at any time. Aviva DigiCare+ Workplace - Aviva
[https://www.aviva.co.uk/business/health-protection-wellbeing/group-prote
ction/digicare/]
More about the research:
-- The study, commissioned by Aviva, was conducted by Potentia among a
sample of 508 key decision-makers representing small and medium-sized
enterprises (SMEs) across the United Kingdom. The research was
undertaken in November 2024.
More about Aviva:
-- We are the UK's leading diversified insurer and we operate in the UK,
Ireland and Canada. We also have international investments in India and
China.
-- We help our 19.6 million customers make the most out of life, plan for
the future, and have the confidence that if things go wrong we'll be
there to put it right.
-- We have been taking care of people for more than 325 years, in line with
our purpose of being 'with you today, for a better tomorrow'. In 2023,
we paid £25.6 billion in claims and benefits to our customers.
-- In 2021, we announced our ambition to become Net Zero by 2040, the first
major insurance company in the world to do so. We are aiming to have Net
Zero carbon emissions from Aviva's operations and supply chain by 2030.
While we are working towards our sustainability ambitions, we recognise
that while we have control over Aviva's operations and influence on our
supply chain, when it comes to decarbonising the economy in which we
operate and invest, Aviva is one part of a far larger global ecosystem.
There are also limits to our ability to influence other organisations
and governments. Nevertheless, we remain focused on the task and are
committed to playing our part in the collective effort to enable the
global transition. Find out more about our climate goals at
www.aviva.com/sustainability/climate
[http://www.aviva.com/sustainability/climate/] and our sustainability
ambition and action at www.aviva.com/sustainability
[http://www.aviva.com/sustainability]
-- Aviva is a Living Wage, Living Pension and Living Hours employer and
provides market-leading benefits for our people, including flexible
working, paid carers leave and equal parental leave. Find out more at
www.aviva.com/about-us/our-people
[http://www.aviva.com/about-us/our-people/]
-- As at 30 June 2024, total Group assets under management at Aviva Group
were £398 billion and our estimated Solvency II shareholder capital
surplus as at 30 September 2024 was £7.6 billion. Our shares are listed
on the London Stock Exchange and we are a member of the FTSE 100 index.
-- For more details on what we do, our business and how we help our
customers, visit www.aviva.com/about-us [http://www.aviva.com/about-us]
-- The Aviva newsroom at www.aviva.com/newsroom
[http://www.aviva.com/newsroom] includes links to our spokespeople
images, podcasts, research reports and our news release archive. Sign up
[https://www.aviva.com/newsroom/get-our-latest-news-and-updates-by-email
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View original content:https://www.prnewswire.co.uk/news-releases/new-aviva-survey-reveals-smes-optimistic-about-2025-growth-driven-by-strong-community-connections-302329133.html [https://www.prnewswire.co.uk/news-releases/new-aviva-survey-reveals-smes-optimistic-about-2025-growth-driven-by-strong-community-connections-302329133.html]
AvivaCONTACT: Enquiries: Media: Marion Fischer, +44 (0) 7800 693 219,
marion.fischer@aviva.com; Sarah Poulter, +44 (0) 7800 691 569,
sarah.poulter@aviva.com
