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A new report has shown that the number of small businesses trading in the UK grew in 2015, and they now account for 99.3% of all UK businesses! kinex looks into these figures.
Figures from the Federation of Small Businesses (FSB) make it clear that small to medium sized enterprises (SMEs) are the lifeblood of the UK economy. As of the start of last year, there were a record 5.4 million private sector businesses in the UK, 99.9% of which were small to medium-sized companies.
British business creation rose to new heights in 2015. New data from Companies House, which handles company creation in the UK, shows that British entrepreneurs launched a record 608,110 start-ups last year; the fourth year UK business creation has broken records.
In a separate report by online SME resource is4profit, it was recently reported that small businesses now make up a staggering 99.8% of the UK economy. These figures also suggest that they generate 47% of British yearly turnover and SMEs now employ a considerable 60% of the UK’s workforce. A new report from Xero, which supplies online accountancy software to SMEs, looked into the factors which determine SME success.
Xero polled 1,300 UK-based small businesses, finding that over half (53%) believe that ‘optimism’ is the key to running a successful business. Tellingly, 36% of small companies questioned were optimistic about their future, but 77% said they have problems resolving various business issues. These included managing workers and clients (77%), handling cash flow (19%) and finding time to work on improving their venture (19%).
Commenting on this poll Xero UK Managing Director Gary Turner said: “Small businesses are significant economic drivers, improving their outlook lifts the entire economy.” Yet other data indicates that turning a fledgling start-up into a booming enterprise can be challenging.
Reporting on this story, is4profit noted that Office for National Statistics (ONS) figures show that 58% of UK businesses fail within their first five years. However the ONS’ data shows that as small businesses learn and become more confident these drop off rates go down significantly, indicating that the more experience SMEs have, the more likely they are to succeed long-term.
More and more, UK-based entrepreneurs are starting small businesses but they continue to face challenges that could prevent them from growing these ventures. If you’re looking to start your own business we’d suggest you think long-term and produce accurate financial forecasts, so you can manage cash flow effectively and create a thriving company.
kinex specialise in looking after you – Britain’s small businesses. We supply all the essential services you rely on at a price you like. And one bill makes the whole thing simple. You get a reliable partner and honest personal service from a team that’s keen to help.