UK bottom of the list for growth and wealth creation but top for political stability amongst major economies, according to SMEs

• The UK is seen as the worst for economic growth among the top 10 global economies, with nearly a quarter (24%) selecting their home nation.
• New research reveals that two in three (65%) British SME owners feel the UK's economy is in long-term decline.
• When respondents compared global economies, they viewed China as the top nation for economic growth (20%), and the US as the leader on wealth creation (31%).
• Despite concerns over economic performance, the UK ranks first for the best quality of life and is seen as the most politically stable compared to other major economies.

A new analysis by iwoca, one of Europe’s largest SME lenders, reveals that among major economies, SMEs believe that the UK offers the least support for businesses and performs the worst at creating wealth.

Almost a quarter of SMEs (24%) identified the UK as the worst compared to other top 10 economies for business support, with a fifth (21%) also ranking the UK first when asked which country had the weakest wealth creation. India and Brazil rank second and third for worst business support out of the top 10 global economies.

Two in three (65%) small and medium-sized businesses believe the UK is in long-term economic decline. When asked to rank the global economies, 24% placed the UK as the worst for economic growth — more than any other nation. 

SME owners also believe the country’s economic performance has fallen short over the past decade, with nearly three-quarters (72%) believing the UK has underperformed in terms of growth.

‍Chinese and US economies stronger

‍When asked to compare global economies, two in five (40%) consider China to have a stronger economy than the UK, and a similar proportion (38%) believe that the US is more economically resilient. One in five (20%) respondents view China as the top nation for economic growth, while the US leads in wealth creation, with nearly a third (31%) viewing it as the best place to grow wealth.

The US is also perceived as the most business-friendly environment against its peers, with one in five (21%) of SME owners naming it the most pro-business country.

‍UK silver linings are political stability and quality of life

‍Despite concerns about the UK’s economic future, the country still holds significant appeal to SME owners in other areas, according to the research. One in five (21%) ranked the UK as having the best quality of life, ahead of the US and Japan (each at 15%).

Additionally, nearly one in five respondents (19%) views the UK as the most politically stable country, outperforming both the US and China (each at 10%).

‍Seema Desai, iwoca’s Chief Operating Officer, said: “While there are some positives, like the UK’s quality of life and political stability, this research highlights the need for more targeted policy measures to ensure businesses across the country feel truly supported.”