Millions of people aspire to own their own company. It’s an excellent way to follow your dreams and forge your own route to success. Owning a small business, on the other hand, is no walk in the park. Whether you already operate a business or want to start one, these statistics will help you succeed.
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#1. Microbusinesses Account For 21% Of All Sales in the UK
Microbusinesses include anything from long-established family businesses to fresher start-ups with a lot of promise for expansion.
Micro firms, known as growth engines that account for 21% of UK sales, confront distinct hurdles owing to their size and capabilities.
Microbusiness entrepreneurs are frequently overworked and compelled to focus on managing and addressing short-term demands.
#2. Business Starts Were 24% Higher In Q4 2020 Compared to Q4 2019 & Greater Than Any Q4 Period in the Previous 4 Years
While the number of new businesses started to decline in Q2 2020 as the COVID-19 epidemic spread, they swiftly rebounded.
This was in contrast to the usual seasonality, which saw more new enterprises formed in the first half of the year, particularly in Q1, in keeping with the beginning of the financial year in April.
Industries such as business administration and support, retail, transportation as well as storage had the most growth in new firms.
#3. Micro Businesses Make Up 14.5% of UK GDP
Microbusinesses account for 14.5% of the UK GDP. This is just slightly less than the world average of 20.5%.
It reveals that one in every five micro-enterprises in the UK has a turnover of less than £50,000. More than 235,000 tiny enterprises generate a revenue of above £1 million and the average turnover of tiny enterprises in the UK is £286,879 pounds.
#4. There Has Been a 72% Growth in the Number of Businesses
Since 2000, the percentage of enterprises having workers has decreased from roughly a third to roughly a quarter. The rise in self-employment is to blame for the decrease in the number of employers as a percentage of all enterprises.
There will be 2.5 million more businesses in 2020 than there were in 2000, an increase of 72%.
#5. The Total Number of Businesses Increased by 1.9%
The entire business population increased by 113,000 people between 2019 and 2020.
#6. 59% of Businesses Are Sole Proprietorships, 34% Are Actively Trading Businesses, & 7% Are Conventional Partnerships
In 2020, the UK private sector business population consists of 3.5 million sole proprietorships (59%), 2.0 million actively trading corporations (34%), and 414,000 ordinary partnerships (7%).
#7. SMEs Account For 96% Of All Businesses
Micro-businesses have less than nine workers. In 2020, the UK had 5.7 million microbusinesses, accounting for 96% of all businesses.
Despite the fact that the great majority of enterprises in the UK employ less than ten people, they only account for 33% of employment and 21% of turnover.
#8. In Mid-March 2021, Education Businesses Were Trading at 61%
The education sector grew to 74% in late January and early February, then fell to 51% in early March, and is now at 61% in mid-March 2021. Coronavirus school closures and university breaks are most likely the reason for these changes.
#9. In 2019, There Were 60% More New Businesses Than in 2000
There were 390,000 business births in the UK in 2019, up 20,000 from the previous year. The number of new businesses created in the last five years has been significantly greater than in the previous five years.
There were 60% more business births in 2019 as compared to in the year 2000.
#10. From Late April to Mid-May 2021, the Percentage of Businesses That Are Presently Trading Stayed Constant At 83%
From late April to mid-May 2021, the percentage of enterprises that are presently trading stayed constant at 83%.
This contrasts with 84% of firms operating in mid-December 2020 (before additional coronavirus limitations were implemented) and 71% in early January 2021, when the countrywide lockdowns were announced.
#11.More Than 99% Of All Enterprises in the UK Are Small to Medium-Sized
Small and medium-sized businesses account for more than 99% of all firms in the UK which means they employ less than 250 people.
#12. The Share of Enterprises With 3 Months’ Financial Reserves Remained Steady At Around 27%
The percentage of enterprises with three months’ cash reserves or fewer remained steady at around 27% during most of 2020 (mid-June to late October).
However, the share of enterprises with three months’ financial reserves or fewer has climbed to over 31% since November 2020.
#13. 55% of Individuals Look for Reviews Prior to Making a Purchase
Before making a purchase, 55% of individuals will look for reviews and recommendations online, with 47% visiting the company website, 26% visiting the actual store, and 23% talking to friends and family.
#14. From January 2021 to Mid-March 2021, Turnover Has Decreased From 46% To 40%
In comparison to usual expectations for this time of year, the percentage of presently trading enterprises suffering a decline in turnover has dropped from 46% in January 2021 to 40% in mid-March 2021.
#15. Furloughed Employees Rise to 19%
Furloughed employees grew from 11% in early December 2020 to 19% in mid-March 2021. The last time this level was reached was in late July 2020, when coronavirus restrictions were being eased following the UK’s first national shutdown.
#16. Over a Third of UK Turnover (Excluding Financial Services) Is Generated by Retail Enterprises
Service industries employed 79% of the workforce and contributed to 71% of overall turnover. In 2020, the retail industry alone employed 18% of the workforce and generated 35% of total revenue.
#17. Decrease Turnover of 80% For Accommodation Industry & 69% In the Food & Beverage Service in Mid-March 2021
The percentage of businesses experiencing a decrease in turnover has dropped from 86% in early January 2021 to 80% in mid-March 2021. In the food and beverage service activities industry it dropped from 80% in early January 2021 to 69% in mid-March 2021
#18. The Accommodation & Foodservice Industry Had the Highest Decrease in Turnover at 72%
With 72% of firms reporting a decline in turnover, the accommodation and food service activities industry had the greatest percentage of enterprises suffering a fall in turnover.
#19. At Least 99.5% of the Population Is Employed by SMEs
In each of the major industry sectors, SMEs account for at least 99.5% of the total population and are thus distributed similarly to the general business population.
#20. 45.7% Of the UK’s Corporate Companies Are Limited With 1 Employee
Limited enterprises with one employee account for 45.7% of the UK’s 1.97 million corporate businesses.
#21. Wales & the North East Had the Highest Percentage of CVs, at 5%
The biggest coefficients of variations are in Wales (5%) and the North East, showing that estimates of private sector firm numbers are less trustworthy than elsewhere, albeit still very exact.
#22. Large Companies Have a Turnover Rate of 48%
Large firms (defined as those with more than 250 workers) account for 0.1% of enterprises but 39% of employment and 48% of turnover.
#23. The Number of Enterprises in the UK Increased by 2%
Between 2019 and 2020, the number of enterprises in the United Kingdom increased by 2%. Wales saw the greatest drop in the number of firms between 2019 and 2020, with a 6% drop.
The North West witnessed a 3% drop, while Yorkshire and the Humber experienced a 1% drop.
#24. 45% of Private-Sector Enterprises Have VAT or PAYE Registered
There are 2.6 million private sector firms that are VAT or PAYE registered, accounting for 45% of the projected total population.
#25. Business Turnover for Manufacturing Industry Is 20%
Manufacturing was the second-largest industry in terms of major business turnover, accounting for 20% of the total.
#26. 18% Of Actively Trading Businesses’ Employees Returned From Furlough
In late April to early May 2021, 18% of actively trading enterprises’ personnel returned from furlough. They returned either totally or partially to remote working or the regular workplace.
#27. 70% Of Businesses in the Arts, Entertainment & Recreation Industry Reported Lower-Than-Average Turnover
70% of enterprises in the arts, entertainment, and leisure sector said that their turnover is lower than usual for this time of year.
#28. Soft Skills Need Increased by 34%, While Basic Digital Skills by 25% In the Education Business
At 34% and 25%, respectively, the education industry (private sector and higher education enterprises alone) reported the biggest rise in demand for soft skills and basic digital abilities.
Location & Industries
#29. The Information & Communication Sector Had the Highest Percentage of Employees Working Remotely
They had 81% of their workforces working remotely. This includes the information and communication industry and the professional, scientific, and technical activities industry
#30. 35% Of the UK Business Population in London & the South East Are in Private Sector Businesses
The South East (932,000) and London (1.1 million) had the most private sector enterprises, accounting for 35% of the UK company population, while the North East had the fewest, with just 163,000 private sector firms.
#31. 15% Of All SMEs Come From the Professional, Scientific & Technical Sector
Professional, Scientific, and Technical Activities accounted for 15% of all SMEs, while the Wholesale and Retail Trade and Repair sector represented for 9%.
#32. 38% Increase on Paperwork Needed for Exporting
There’s a 38% increase on paperwork that’s needed for exporting and an increase of 45% for Importing. The primary problem for present trade businesses when it comes to exporting and importing is increased paperwork, at 38% and 45% respectively.
#33. Trade Percentage Has Increased to 75%
The current trade percentage has grown significantly from 71% in early January 2021 to 75% in late March 2021, which is close to the level witnessed in July 2020.
#34. In All Industries, 5% Of Active Trade Firms Sent Products From the UK to Northern Ireland & 2% From Northern Ireland to the UK
In the previous 12 months, 5% of actively trading enterprises in all industries shipped items from the UK to Northern Ireland, and 2% from Northern Ireland to the UK.
#35. 22% Increase in Demand for Digital Skills
Many industries indicated a 22% greater need for advanced digital capabilities. These include water supply, sewerage, waste management, and remediation activities industries, as well as the information and communication industries.
#36. The UK Has the 4th Highest Global Number of Microbusinesses per Capita
According to the Vistaprint Global Micro-Business Impact Report, the UK has the fourth-largest number of microbusinesses per capita in the world, with 81 microbusinesses per 1,000 people.
Despite the fact that there are so many of these types of enterprises in the UK, they contribute less to gross value added and total employment levels than micro-businesses in other countries.
#37. 86% of Businesses in Northern Ireland Are Now Trading
86% of enterprises that are presently trading and have shipped products from the UK to Northern Ireland in the last 12 months said that the major route they utilised was from the United Kingdom to Northern Ireland.
#38. Exports and Imports Were Done by 12% Of Actively Trading Businesses
12% of actively trading enterprises had both imported and exported in the previous year and reported how their exporting compared to usual expectations for this time of year.
#39. The UK Is Home to 8,000 Large Businesses
There are 8,000 large companies in the UK with more than 250 people employed in each.
#40. London Has the Most Businesses per 10,000 Adult Residents
The city with the most enterprises per 10,000 adults is London with 1,593. Other parts of England including the South East of England (1,257), the South West of England (1,214), and the East of England had high rates.
The UK country has the lowest business density rate. It’s 744 lower than the North East of England. In comparison to the UK average, Wales (807), Scotland (815), and Northern Ireland (990) all had low business density rates.
#41. 19% Number of Businesses Increase for Northern Ireland & 11% For East Midlands & Scotland
Northern Ireland saw the greatest rise in the number of businesses, with 19%. Both the East Midlands and Scotland witnessed an 11% increase.
#42. 8% Of Businesses Test Their Employees for Coronavirus on a Regular Basis
In late March 2021, 8% of firms presently trading provided regular coronavirus testing to their workers, and of those firms, 25% of the workers received regular coronavirus testing, equating to 2% of the workforce of firms presently trading.
#43. Currently, the Accommodation & Food Service Activities Industry Is Trading at 46%
The accommodation and food service activities industry is trading at 46%. That’s fewer than half of the industry.
#44. More Than Half of the Companies Have Cash Reserves
More than half of enterprises in the other service activities category have cash buffers of three months or less.
#45. Sole Proprietorships Increased by 28%
Between 2000 and 2020, the number of sole proprietorships climbed by 783,000 (+28%) while the number of businesses by 757,000 (+60%).
#46. The Number of SMEs Has Risen by 73%
Since 2000, the number of SMEs has expanded by 2.5 million (+73%), with 301,000 SMEs employing more people (+27%).
#47. Only 17% Of Businesses Are Currently Trading
With 17% of enterprises presently trading, the other service activities category has the lowest amount of enterprises.
Businesses in the hairdressing and other beauty treatment activities industry were the driving force behind this, most likely as a result of enforced closures due to COVID-19 limitations.
#48. Since Mid-January, the Hotel & Food Service Activities Business Has Expanded by 12%
The percentage of enterprises now trading in the hotel and food service activities industry has gradually increased by 12% since mid-January 2021.
#49. In Early January 2021, Education Businesses Decreased by 66%
The businesses working with education (private sector alone) have fluctuated throughout time, decreasing to 66% in early January 2021.
#50. More Than Half of Businesses in the Other Service Industry Had 3 Months’ Cash Reserves in Late March 2021
In late March 2021, half of companies in the other service activities industry, which includes hairdressing and other beauty treatment operations, had cash reserves of three months or less. In early January 2021, the figure was 45%.
The Coronavirus pandemic has significantly influenced businesses all over the world and in the UK we’ve seen some interesting shifts. Small businesses seem to be sprouting up all around which is at least one positive trend. The service industry, on the other hand, isn’t cheering as hard, their industry has been one of the hardest hit.