Be the Business' eighth edition of the Productive Business Index demonstrates clear potential for a £140bn Gross Value Added uplift over the next three years.
The Productive Business Index (PBI) series, first published in 2021, track changes over time in five key capability areas to understand what actions SMBs are taking to improve their productivity. The PBI also measures general operating conditions, barriers to growth and expectations for the future.
The latest Productive Business Index (PBI) demonstrates a strong and unique story of resilience, high confidence, and robust ambition among UK Small and Medium-sized Businesses (SMBs). Despite external headwinds, the data indicates that business leaders are emerging stronger and intend to take the necessary action to improve productivity.
If the projected performance expectations are realised, this ambition could equate to a massive £140 billion in Gross Value Added (GVA) for the UK economy over the next three years.
Key findings include:
SMB leaders are expecting an average 8% rise in sales in each of the next three years, equating to a potential £140 billion GVA growth.
72% of businesses expect revenue increases over the next three months, with 60% have seen rising order volumes in the last three months.
66% of Medium-sized businesses are actively upskilling their people in skills and digital readiness.
75% of SMBs have fairly or very good capabilities in using automation and AI - up from 15% in 2024
Younger firms (trading for 5 or fewer years) and owner-managed businesses score highest on the Index, while firms exporting between 25% and 50% of their output are in the "productivity sweet spot
SMBs across almost all sectors believe their biggest productivity drivers include technical skills and professional development, introducing new products and services, or training to improve digital skills — followed closely by investment in broader digital transformation and technology.
Related
Be the Business Productive Business Index – Edition One Q1 2021
Be the Business Productive Business Index - Edition Seven, Q1 2024
Be the Business Productive Business Index – Edition Three Q3 2021
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