{"id":1829,"date":"2026-04-30T08:03:44","date_gmt":"2026-04-30T08:03:44","guid":{"rendered":""},"modified":"2026-07-26T19:02:00","modified_gmt":"2026-07-26T17:02:00","slug":"uk-sme-statistics","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/uk-sme-statistics\/","title":{"rendered":"UK Small and Medium-sized enterprises (SMEs) business statistics"},"content":{"rendered":"\t\t
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Small and medium-sized enterprises (SMEs) are the lifeblood of innovation in the UK. We\u2019ve dived into the most recent SME statistics, exploring their contribution to the UK economy.<\/p>\n\n\n\n

How many UK SMEs are there?<\/h2>\n\n\n\n

According to the government\u2019s Business Population Estimates for the UK and Regions 2025<\/a> report, there are 5.69 million SMEs, which make up 99.85% of UK private sector businesses. 5.64 million of these are classed as \u201csmall\u201d (0 to 49 employees) and 38,435 are classed as \u201cmedium-sized\u201d (50 to 249 employees).<\/p>\n\n\n\n

Drilling into the stats<\/a> that come with the report, there are a further 4,290 businesses that could potentially be classed as SMEs for R&D Tax Credits<\/a> purposes as they employ between 250 to 499 people (as long as they meet the rest of the criteria \u2013 see below).<\/p>\n\n\n\n

What is the definition of an SME for R&D Tax Credits purposes?<\/h2>\n\n\n\n

While reporting the number of SMEs in the UK, the Department for Business, Energy & Industrial Strategy uses the basic criteria of between 0 to 49 employees for a small business and 50 to 249 employees for a medium-sized business.<\/p>\n\n\n\n

For applying for R&D Tax Credits<\/a>, the definition of an SME in the UK is more specific. For tax purposes, HMRC defines small and medium-sized enterprises as having a headcount below 500 and a turnover of under \u20ac100m, or a balance sheet that totals less than \u20ac86m.<\/p>\n\n\n\n

Loss-making SMEs whose R&D spend makes up at least 30% of their total expenditure (for accounting periods beginning on or after 1 April 2024) are classed as \u201cR&D intensive\u201d and are therefore eligible for enhanced R&D intensive support<\/a>. All other eligible SMEs would use the merged R&D scheme<\/a> for claiming tax credits.<\/p>\n\n\n\n

You can find out more by downloading our whitepaper: The Complete Guide To R&D Tax Credits<\/a>.<\/p>\n\n\n\n

How many people in the UK are employed by SMEs?<\/h2>\n\n\n\n

The government\u2019s statistics<\/a> show that in 2025 SMEs employed 16.9 million people in the UK, 60% of the total number of people employed by the private sector.<\/p>\n\n\n\n

What is the turnover of SMEs in the UK?<\/h2>\n\n\n\n

The government reports<\/a> that turnover for UK SMEs was \u00a32.8 trillion in 2025, 51% of the total turnover of private businesses.<\/p>\n\n\n\n

How many SMEs claimed R&D Tax Credits?<\/h2>\n\n\n\n

For the 2023-2024 tax year, HMRC estimates<\/a> that 43,615 SMEs made R&D claims, 93% of all claims.<\/p>\n\n\n\n

36,885 of these made SME scheme<\/a> claims, which break down as:<\/p>\n\n\n

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