10 Intriguing Facts About UK Small Businesses
As the heartbeat of UK’s economy, small businesses have always been a formidable force. The innovative solutions that they bring to the table and the entrepreneurial spirit that they uphold make them a vital segment of the global market. Want to know more? Check out these 10 intriguing facts about UK small businesses:
- There are over 5.9 million small businesses in the UK –
As of 2022, there are over 5.9 million small businesses in the UK, which account for 99.3% of all UK businesses. This figure has been on the rise for the past decade.
- Small businesses employ over 16.8 million people in the UK –
Small businesses are responsible for creating most jobs within the country. 16.8 million people are employed by UK small businesses, making them an indispensable part of the country’s economy.
- 89% of small businesses are sole traders –
According to the UK’s government data, around 89% of small businesses are sole traders. This statistic indicates the importance of entrepreneurship in the UK’s economy, with a majority of small businesses being led by ambitious entrepreneurs.
- UK small businesses make up nearly half of total UK revenue –
Small businesses in the UK generated £2.3 trillion in revenue in 2022, which equals almost half of the country’s total revenue. This statistic proves the immense impact of small businesses on the country’s economy.
- Small online businesses generated £33.3 billion in 2022 –
The e-commerce revolution has dramatically impacted small businesses, especially those that operate online. As of 2022, small online businesses generated £33.3 billion in sales, which is expected to increase significantly with new digitisation trends.
- Almost half of small businesses are operated from home –
A significant proportion of UK small businesses are run from home, with 49% being operated from a residential property. This trend is increasing due to the flexibility it offers and increasing digitisation.
- 20% of small businesses fail within the first year of operation –
Starting a small business can be risky, and data shows that only 80% of startups survive their first year. However, this statistic is still an all-time high compared to previous years.
- The number of small businesses has increased by 66% since 2000 –
Over the past two decades, the number of small businesses in the UK has increased by 66%, which is a testament to the innovative spirit of the country.
- Women make up 40% of small business owners in the UK –
Female entrepreneurs have been on the rise in recent years, with women making up 40% of small business owners in the UK. An encouraging trend for gender equality in business.
- London has the highest number of small businesses in the UK –
Unsurprisingly, the UK capital boasts the highest number of small businesses in the country. Around 26.7% of all small businesses in the UK are based in London.
In conclusion, small businesses continue to be a crucial part of the UK economy, playing an essential role in creating jobs and generating revenue. These ten intriguing facts about UK small businesses highlight the entrepreneurial spirit of the country and the continuing evolution of the small business landscape.
If you’d like to find out more insightful facts about small businesses or require any other business support, our team would love to help! Get in touch:
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