Following several years of a widening ‘productivity gap’ between the UK and other developed economies, a study by venture capitalist Albion Ventures suggests this trend may start to reverse.
Only 3 per cent of firms predict their output will fall by 2017, while 36 per cent say it will remain the same.
Improvements have been pursued most aggressively by medium-sized companies, of which 86 per cent have adopted measures to boost output, against just 56 per cent of small firms.
Patrick Reeve, managing partner at Albion, said: ‘Given the majority of the UK workforce is employed by SMEs, improving productivity at this level is key to achieving real wage growth and a better standard of living nationwide.
‘While the Government has pledged long-term investment in areas like infrastructure, it’s down to individual businesses to adopt the right measures themselves.’
The third Albion Growth Report found 54 per cent of business owners in the South West said they would increase productivity over the next two years.
The most common measures taken have been to use better processes; technology; and training.
When asked how the Government can help, 42 per cent said that investment in fixed-line broadband would give the biggest benefits.
