The UK economy needs small businesses; when SMEs thrive, the UK economy survives (and grows).
In case you had any doubts, here is some data to highlight just how important your retail business is to the prosperity of the UK economy:
- The services industry (consulting, retail, hospitality) is the biggest contributor to the UK economy; in 2021 it generated £1.7tn in GVA, or 80% of the GVA total for the year (source: Commons Library)
- There were £421bn in retail sales in 2021 (source: Retail Economics)
- As of March 2022, 14% of jobs in the UK are in the retail/ wholesale sector
- The second highest percentage of SMEs are in the retail sector (more than 4/10), showing just how crucial the right sales strategy is to the success of the wider economy (source: Internet Retailing)
Whilst these numbers are enlightening, they only tell half of the story. SMEs, particularly in the retail sector, also create benefits for the business owners and consumers.
For those of us running an SME, we are:
- Driving innovation: getting our ideas out in to the world gives consumers more choice and pushes the boundaries of what else is possible in product development. Big businesses are often constrained by red tape, but SMEs can often go from idea to launch on a shorter timeframe to test the market.
- Creating financial success, on our own terms: we work independently, at times that work for us, allowing us time for other hobbies and pursuits alongside our work, which in turn leads to more creativity, increased work satisfaction and a better work-life balance.
- Living with purpose and feeling a sense of self-worth, doing a job that fulfils us.
- Creating jobs: when our business thrives, we can bring others in to the fold.
- Using a potential side hustle as supplementary income and/ or as a creative outlet, which benefits us financially and mentally.
For the all-important consumer, small retail businesses provide:
- A wider range of products and services
- A sense of pride in supporting a small business
- A personal touch (maybe a thank you note or a small freebie)
- Transparency around their working practices
- Choice- from cakes to jewellery, there is endless variety, and with reviews, customers are easily able to see what best fits their needs.
If you would like help with your small business during these challenging times, get in touch.