After a promising start, 40 per cent of UK small businesses are planning to hire new employees
Britain’s economy saw its fastest annual growth rate on record in 2021 – rising by 7.5 per cent throughout the year. This comes after businesses throughout the UK showed great resolve by adapting to restrictions caused by the pandemic.
One of the most impressive sectors in the UK business scene is the small business sector. SMEs throughout the UK saw impressive growth throughout 2021 and have continued this momentum into 2022 with 56.2 per cent of SMEs reporting a rise in earnings in the last quarter of 2021 versus the same period of 2020. The small business eco-system is predicted to be a ‘boom’ sector throughout 2022 for UK business with UK SMEs looking to drive employment and investment numbers with 58 per cent of SMEs predicting an increase in revenue this quarter compared to last year.
“The UK small business sector is in an exciting time,” said Luke Davis, CEO of IW Capital. “SMEs have worked so hard throughout the last year, not just to survive but to prosper and with restrictions ending the small business sector looks set to revel in the opportunity to grow their businesses significantly throughout 2022.”
After a promising start to the year, 40 per cent of UK small- and medium-sized businesses are planning to hire, on average, six new employees as they look to continue to grow and progress their company.
Colin O’Flaherty, head of small business at Barclaycard Payments, said: “Small and medium-sized businesses have had a positive start to the year and it’s encouraging to see so many seeking to add to their workforce. SMEs are also remaining resilient by continuing to focus on areas within their control, such as by improving their operating models to overcome the hangover to supply chain disruption which peaked at the end of last year.
“The coming months will no doubt present continued challenges for British SMEs and the impact of rising costs will remain front of mind. Businesses will need to call on the same spirit for innovation and specialised support that has propelled them through the last two years.”
SME investing represents an exciting opportunity for UK investors, providing them with tax benefits and a realistic chance to maximise their returns. In 2021 there were a record 319,000 new businesses registered in the UK, with the number of small businesses in the UK now standing at 5.5 million, with recent research showing that two-thirds of the UK workforce want to start their own company. This shows a continued desire, caused by the pandemic, for individuals to start a business of their own in the UK.
With 16 per cent of UK investors looking to back start-ups and newly formed businesses it seems they will be given a platform to continue the success and progression of their companies throughout 2022. “SMEs are set to drive employment and investing throughout 2022 – with nearly half of UK SMEs looking to hire new employees after a promising start to 2022 and UK investors ready to back start-ups and newly formed businesses SMEs are ready to make 2022 an impressive year and grow as much as possible throughout the year,” said Luke.