UK small business sector could be set for a ‘boom’ in 2022
Britain’s economy saw its fastest annual growth rate on record in 2021 – rising by 7.5% throughout the year. This comes after businesses in the UK showed great resolve by adapting to the challenges caused by the Covid pandemic, with those in the small business sector demonstrating particular resilience.
One of the most impressive sectors in the UK business scene is the small business sector. SMEs throughout the UK experienced impressive growth throughout 2021 and have continued this momentum into 2022, with 56.2% of SMEs reporting a rise in earnings in the last quarter of 2021 compared to the same period of 2020. The UK’s small business eco-system is predicted to be a ‘boom’ sector throughout 2022, with UK SMEs looking to drive employment and investment. In addition, 58% of SMEs predict an increase in revenue this quarter compared to last year.
After a promising start to the year, 40% of UK small and medium-sized businesses are planning to hire, on average, six new employees before the end of March as they prepare to grow and progress their company.
SME investing presents 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, bringing the total number of small businesses in the UK to 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, driven by the pandemic, for individuals to start a business of their own in the UK.
SME investment provides an exciting, alternative investment prospect for investors that are looking to support the growth of small businesses, with 16% of UK investors already looking to back start-ups and newly formed businesses in 2022. This will provide UK SMEs with a platform to continue the success and progression of their companies throughout the year.
With UK SMEs set to drive employment and investment opportunities throughout the next 12 months, 2022 looks to be a landmark year for small businesses as they focus on maximising growth without the economic challenges of the pandemic.
To find out how IW Capital could maximise your investment opportunities, please contact the team today on 020 7015 2250, or email info@iwcapital.co.uk.