What the evidence means
The Longitudinal Small Business Survey covers UK businesses with 1 to 249 employees. Profit or surplus is self-reported rather than taken from filed accounts.
Self-reported result for the previous financial year.
G&G verified business evidence
UK SME employers reporting a profit in 2024
In 2024, 77% of UK SME employers reported making a profit or surplus in their previous financial year.
77
percent
Original source
Department for Business and Trade
Longitudinal Small Business Survey 2024: SME employers
The survey reports 77% of SME employers made a profit or surplus.
View original evidence
Department for Business and Trade. Longitudinal Small Business Survey 2024: SME employers. 25th of September, 2025. https://www.gov.uk/government/statistics/small-business-survey-2024-businesses-with-employees/longitudinal-small-business-survey-2024-sme-employers-businesses-with-1-to-249-employees
Why this matters to UK SMEs
This provides a broad benchmark for the financial resilience of UK employer SMEs. It can help an owner place their latest result in context, but it does not show how large the profit was, whether margins improved or whether the business generated cash.
Key breakdowns
Profit or surplus was reported by 76% of micro employers, 78% of small employers and 82% of medium-sized employers. The UK-wide figure was 78% in 2023 and 79% in 2022. By sector, finance and real estate (85%) and professional and scientific businesses (84%) were most likely to report a profit or surplus; health (67%), education (70%) and accommodation and food (70%) were least likely. Northern Ireland recorded 84%, compared with 76% in England, Scotland and Wales.
How to interpret this evidence
Most employer SMEs said they had generated a profit or surplus, and the likelihood increased with business size. The overall rate was broadly stable but slightly below the previous two years, so the result is better read as widespread reported profitability rather than evidence that profit levels or margins were rising.
Limitations
This is a weighted telephone-survey result for private-sector businesses with 1 to 249 employees. It excludes non-employers and is self-reported rather than derived from filed accounts. The measure records whether any profit or surplus was made, not its value, margin, quality or cash conversion. Sector and nation comparisons may have different sampling uncertainty, and percentages are rounded.
Practical considerations
G&G perspective: use the 77% as a benchmark, then examine operating margin, cash generation, debtor days and the sustainability of the result in your own accounts. Compare with businesses of a similar size and sector rather than treating the UK average as a target. Where profitability is weak or volatile, scenario planning and early advice from an accountant or finance adviser may be more useful than the headline alone.