A new research study conducted by Direct Line for Business has revealed that UK small businesses are thriving going into the new year and prove to be amongst some of the most resilient and adaptable businesses in the UK, despite aspects like large fluctuations in revenue, customer demands, and other uncertainties appearing not to being on their side. For us, this just proves the dedication of not only the small business owners themselves when faced with adversity, but the locals that continue to support them and actively choose them over big brands.
Direct Line for Business
Below are just a handful of the stats that have surfaced from this study by Direct Line for Business:
1.6 million small businesses say they double their revenue in some months
53 per cent of Small to Medium Sized Enterprises (SMEs) reported an increase in revenue in the past year
There has been a 23 per cent growth of VAT registered SMEs in the last five years
London is the UK’s small business birth capital, with almost a quarter of all new small firms formed in 2017 registered in the city
Direct Line for Business have also discovered that it is widely common for a small business’ revenue to either double or halve in certain months of the year. These large fluctuations can make managing a business and its cash flow quite difficult. These factors require businesses to be extremely flexible and willing to adapt depending on their constantly changing revenue.
One of the ways control is being re-established is by regulating employee numbers, by either increasing or recreasing these numbers in reponse to the revenue changes. 23% of small businesses have had to employ more staff because of this rapid expansion.
“Small company owners and operators are amongst the most resilient and adaptable business leaders in the UK. Fluctuating revenues and demand can be difficult to manage, but British SMEs continue to thrive. ”
Yet, these uncertainties are no match for the determination and passion of small business owners and entrepreneurs! In this past year, 53% of SMEs have had a increased revenue, with 3% experiencing a revenue increase of more than 50%!
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There has also been a 23% increase in VAT registered small businesses in the last 5 years, with now 2.7 million and counting operating in the UK! The number of microbusinesses (less than 10 employees) has also increased by 25%, with a current total of 2.4 million. London has continued to see the highest number of new small and start-up businesses, with 92,3000 registering in 2017, which accounts for almost 24% of all those formed in the UK.
It seems like now is a better time than any to push young and budding entrepreneurs to dream big and achieve their aspirations of starting up a business they get to call their own and be proud of!
Reference: https://www.directlineforbusiness.co.uk/small-business-insurance
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