With the storm clouds gathering over the UK economy, and the Chancellor eying up deep spending cuts to balance the books, wecspoke with Steven George-Hilley, founder of Centropy PR about how smaller firms survive and thrive.
What do you think are the biggest challenges facing UK SMEs?
It’s no secret that these are very tough times for small businesses. A toxic mix of high interest rates, stubborn inflation and a deep cost of living crisis have made it an almost unbearable climate for ambitious companies.
Alongside trade tariffs and a major increase in National Insurance (NI), many entrepreneurs and founders have scaled back their hiring plans and slashed their spending.
However, these organisations may be down, but they are certainly not out. Smaller firms make up the vast majority of economic output and will put in the extra hours to stay afloat.
What can SMEs do to weather the financial storm?
Data suggests that last year there were 5.45 million small businesses in operation in the UK, employing 16.6million people. Safeguarding the future of these firms should be an absolute top priority for the government.
We work with dozens of brilliant start-ups, all run by inspirational and ambitious individuals, many offering amazing products and services. Yet so many of them lack the internal infrastructure of their larger competitors.
This means they’re often struggling to get their message out to the right people, unable to create high-impact marketing materials, develop an effective public relations strategy and miss out on speaking slots at key trade shows.
What are the benefits for SMEs engaging in policy discussions?
It’s crucial for SMEs to ensure they are speaking out on the big issues facing their respective industries. I regularly hold policy discussions for our clients with members of the House of Lords and MPs in the Parliament.
Many business leaders I speak with are pleasantly surprised at how receptive elective officials are to their feedback and insights. Topics we’ve recently covered include the impact of AI on the jobs market, the rise of digital policing and the role fintech will play in driving economic growth.
All too often, owners of smaller firms think their voice doesn’t count, when the opposite is true.
What are your predictions for SME growth in 2025 and beyond?
It’s clearly going to be a very tough year for small firms, with interest rates remaining high and steep NI increases to absorb. Technology will also shake things up. AI will continue to reshape traditional working models, bringing huge benefits for fast-growing companies seeking to scale up quickly.
Tough times are here to stay, but Britain’s ambitious companies will stay focused, concentrate on driving growth and weather the economic storm.
Steven George-Hilley is the founder of Centropy PR, a global technology and fintech communications agency based in The News Building at London Bridge.
