New customers drive revenue for UK SMEs
Small businesses are receiving vital support from their customer base, with a study from Opinium on behalf of American Express, reporting that more than half (55%) of small businesses reported seeing a rise in new customers purchasing from their business over the past six months. The study showed that 52% of small businesses believe customers are choosing to shop with them to support them through the challenging trading period that is driven by ongoing cost and supply chain pressures.
Similarly, a study from IW Capital found that 58% of Brits plan to shop more at their local high street this year, providing essential support for the impressive small business sector in the UK. SMEs continue to be vital for the growth of the UK business landscape, accounting for 99.9% of the UK business population, three-fifths of employment and nearly half of turnover in the UK private sector.
With small businesses acting as the heartbeat of local communities, shoppers are not the only ones showing support. A study from IW Capital found that 16% of UK investors are looking to back start-ups and newly formed businesses. In fact, from an investment standpoint, the small business sector could be one of the most interesting sectors in the UK business ecosystem. UK SMEs have battled various obstacles over the past few years to register impressive growth throughout 2022 which is set to continue this summer with the support of loyal customers. Small business owners continue to demonstrate elicit optimism for the months ahead, with two-thirds (66%) of SMEs saying they are expecting sales to grow over the next year.