Natwest boss Alison Rose: I’m optimistic about this nation of SMEs
The economic consequences of the pandemic have been severe, not least on the UK’s smallest businesses, but for Natwest boss Alison Rose it has shown just how resilient the country’s SMEs are.
Rose, who was appointed chief executive towards the end of 2019, has spent the majority of her tenure tackling the impact of the pandemic on her customers.
She considers Natwest to be a “bellwether of the UK economy… we’re inherently linked to the success of our customers”.
Natwest beat expectations in its first-quarter results last month, returning to profit as it cut its bad debt provisions.
Speaking at a Tortoise Media event this morning, Rose said: “The economy’s been put into hard stop for effectively six months and yet the way I’ve seen entrepreneurs and small business owners cope and pivot their businesses and respond is really positive.”
Research by payments specialist Know-it reveals a quarter of the country’s smallest businesses are facing a cash flow crisis despite significant government support, laying bare the extent of how devastating the pandemic has been on SMEs.
Rose strikes a more upbeat tone and insists there are things to be positive about: “SMEs are the lifeblood of the economy. There’s a huge amount to be optimistic about in terms of a nation of SMEs, and we’ll strengthen our economy through biotech, science, manufacturing…”
Indeed there are already encouraging signs for the recovery. Last week the Bank of England’s Monetary Policy Committee lifted its growth forecasts, saying the economy looks stronger than expected back in February.
In 2021, annual average GDP growth is projected to be around 7.25 per cent, compared with the previously forecasted five per cent.
Rose echoes this sentiment: “We’re still one of the global financial centres which services the economy more broadly… The global economy has been through a tough space.. I think the UK has huge strengths. There’ll be challenges in tough times but I’m positive about the recovery and the resilience the UK economy and SMEs have”.