New research from Aviva indicates that nearly three quarters (73%) of small and medium-sized enterprises (SMEs) in the UK anticipate growth over the next year, while only 3% expect contraction.
SMEs represent 99.8% of UK businesses, making their outlook significant for the broader economy.
Among those forecasting expansion, 62% expect increased customer demand in the coming 12 months. Half of the growing SMEs plan to diversify their products or services, 48% intend to increase staff numbers, and 35% are looking to open new locations.
As businesses expand, the workload for decision-makers also rises. Seventy-seven per cent (77%) of leaders in growing firms report heavier workloads, with 18% stating they lack sufficient time to complete all necessary tasks. Many are taking on responsibilities outside their core roles, with 77% handling such duties more than once a week.
Financial planning and sales and marketing are the most time-consuming tasks for SME leaders, each cited by 38%. Other significant demands include managing staff and HR issues (36%), administrative work such as arranging insurance (35%), and IT and cyber security (34%).
Leaders also spend considerable time on compliance and regulation (30%), business continuity planning (26%), and risk management and health and safety (24%). Notably, 21% of SME leaders would prefer not to handle administrative tasks at all.
Despite these pressures, many SMEs are not fully utilising the support available from insurance brokers. Only 32% turn to brokers for risk management, and just 25% seek help with business continuity planning.
Brokers can play a key role in helping businesses understand their risks and ensure they have the appropriate insurance cover as they grow.
Rebecca Gambrell (pictured above), managing director, SME and Delegated Authorities at Aviva, said: “SMEs are vital to our communities, so it is uplifting to see their confidence in the future. However, growth often brings a heavier workload and new challenges, at a time when business owners are already managing multiple demands.”
A previous Aviva study found that 99% of UK SMEs recognise the importance of employee wellbeing, with 77% describing it as “very important.” Many businesses have introduced initiatives such as mental health counselling, access to helplines, and discounted wellbeing services.
Nearly half of SMEs surveyed provide mental health support, while 44% conduct regular training for leaders on managing workplace mental health and employee wellbeing.
In addition, 92% of SMEs indicated they would be willing to pay higher insurance premiums to access wellbeing services for their employees. Some respondents said they would pay up to 15% more annually for such coverage.
Gambrell said that brokers can support businesses as they prepare for the future, helping them understand the risks they face and ensuring they have suitable cover as their needs change.
“By helping SMEs manage the risks they face, brokers can free up time for business leaders to focus on what they love – running and growing their business," he said. "With expert support in place, SMEs can concentrate on taking their businesses from strength to strength, knowing they’re protected.”
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