How SMEs power the UK’s economy

How SMEs power the UK’s economy

When we think about businesses powering the UK’s economy, we often think of the big corporations providing jobs for thousands of employees. But did you know that SMEs are just as important?

In fact, at the start of 2020 there were 5.94 million small businesses (with 0 to 49 employees), 99.3% of the total business in the UK, meaning that SMEs account for 99.9% of the business population (6.0 million businesses). As a result, SMEs account for three-fifths of the employment available nationally.

And what’s more, SMEs turn over more than £1.6 trillion each year! So the bottom line is that small businesses have a huge impact on the economy as a whole.

Although it’s not always easy to keep going as a small business, especially in a pandemic.

How has Covid hit small businesses?

Although small businesses are essential to the economy, unfortunately Covid-19 posed a huge challenge to SMEs nationally. This combined with the challenges of Brexit has meant a turbulent year for many.

In fact, as a result of the dire circumstances many SMEs have faced, a record 250,000 small firms are set to close. And as we wave goodbye to the smaller firms, we also have to wave goodbye to jobs too.

If you’re a small business owner wondering how to stay afloat in difficult times, all is not lost. To help SMEs like yourself, we’ve put together our top tips to stay you stay afloat.

Top tips for small businesses

  1. Keep organised

It goes without saying, but those who fail to prepare are preparing to fail. In uncertain times especially, business leaders need to be organised and in touch with everything that’s going on externally.

By staying organised, you can make sure you’re on target to complete all the tasks necessary for success and ensure nothing falls by the wayside.

  1. Consider outside investment

Sometimes, you’ll need a little helping hand. Whether it’s stumping up the cash to purchase stock or expand your business premises to offer a new service, sometimes you need a little extra cash.

In fact, many small businesses choose to opt for business loans to help them expand. If you’ve properly researched your options and are able to make the repayments, they can be a great way to get things off the ground.

  1. Understand your risks

Although not many of us had “worldwide pandemic” down on our risks sheet at the start of 2020, actually assessing the risks to your business and the potential rewards can be a great strategy.

Try to ask yourself what the potential benefits of would be with that risk, compared to the downsides.

If the potential benefits outweigh the downsides – go for it!

  1. Get creative

In a world where competition is rife, it pays to get creative. To stand out from the crowd, think about how you could get creative with your approach. After all, you may just discover something groundbreaking!

The bottom line

The bottom line is that it’s not easy for small businesses, but their survival is crucial to the UK economy.

If your business is on shaky ground, then it’s important not to give up! Whether you look to mix up the way you do things or seek external financial support, help is available for those who require it.

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