As the UK’s small and medium-sized enterprises (SMEs) look towards 2025, a wave of optimism is sweeping across the sector. According to a new Aviva survey, an overwhelming 89% of SMEs are confident in their ability to grow in the coming year. But beneath this optimism lies a narrative of community connections, skill shortages, and the essential role of financial and infrastructural support.
The Power of Community
SMEs are not just businesses—they are the lifeblood of their local communities. Aviva’s study underscores this connection, with 89% of growth-oriented SMEs reporting a strong sense of belonging within their local areas. This community connection is more than symbolic; it translates into tangible benefits such as loyal customers, collaborative networks, and access to local talent.
In fact, over half of SMEs with strong community ties actively hire from the local workforce, with 82% of those planning growth in 2025 anticipating an increased need for local hires. For many SMEs, the availability of skilled local labour is a cornerstone of their success, yet only 36% strongly agree there’s an adequate supply of skilled workers in their communities.
David Schofield, Sustainability Director at Aviva, emphasised this connection, stating, “SMEs are the backbone of the UK economy. Their growth is vital not only for economic stability but also for the prosperity of local communities across the nation.”
Breaking Down Barriers to Growth
While community connections foster growth, barriers such as skill shortages and inadequate transport infrastructure threaten to stifle progress. The survey highlights that only 31% of manufacturing SMEs and 29% in hospitality strongly agree they have access to enough skilled workers locally.
Transport infrastructure also emerged as a critical concern, with 63% of SMEs expecting their expansion plans to require better connectivity in 2025. From improved public transport links to electric vehicle charging points and cycle lanes, the need for investment in infrastructure is clear.
Aviva has been proactive in addressing these challenges, offering SMEs resources to navigate these hurdles. Through their Commercial Intelligence Tool and Sustainable Business Coach, Aviva empowers SMEs to identify risks, optimise operations, and set sustainability goals.
Aviva’s Role in SME Success
Aviva’s support extends beyond insurance. Their partnership with the Money Advice Trust helps SMEs access financial advice and resilience training, while investments through Aviva Ventures provide startups with the tools and expertise needed to scale sustainably.
One example of Aviva’s commitment to SMEs is their collaboration with Business in the Community (BITC). As a founding partner, Aviva supports initiatives aimed at breaking down barriers to education and employment, improving housing, and tackling local inequalities.
Schofield highlighted Aviva’s approach, stating, “By providing tailored advice and financial assistance, we’re committed to helping small businesses prepare for success in 2025 and beyond.”
Bringing Financial Decisions to Life
Aviva’s mission to simplify complex financial decisions resonates through its latest campaign, “Making It Click”. The heartwarming ad features Gino and Gina, a father-daughter duo running a family restaurant. Through moments of crisis and growth, Aviva’s tools—from business insurance to investment solutions—help them navigate their financial journey.
Phoebe Barter, Aviva’s Group Brand and Sponsorship Director, explained, “Through the story of Gino and Gina, we aim to showcase the magic of Aviva and our unique ability to support customers through every high, low, milestone, and life moment.”
This blend of emotional storytelling and practical support demonstrates Aviva’s commitment to empowering SMEs, helping them transform challenges into opportunities.
Looking Ahead
As SMEs gear up for a pivotal year, their resilience and optimism remain inspiring. Yet the challenges of skill shortages and infrastructure gaps demand collective action. By leveraging community ties, embracing innovation, and partnering with organisations like Aviva, SMEs can unlock their full potential in 2025 and beyond.
With initiatives like Making It Click and practical tools designed to address real-world business challenges, Aviva positions itself not just as a financial services provider but as a true partner in growth. For SMEs, the future isn’t just bright—it’s clicking into place.
