Smaller enterprises are experiencing faster growth compared to bigger corporations, according to recent findings.
In the ever-evolving landscape of meta, small companies continue to inspire with their resilience and adaptability, according to businesswoman and activist Mary Portas. She believes that being small and nimble can provide an opportunity to outmaneuver bigger players in an unpredictable world.
Recent research by Mastercard has raised concerns that the optimism of small businesses lags behind that of larger corporations. This is particularly true for businesses with 10 to 49 employees, with only a third (33.7%) expecting their performance to improve, and those with 10 or fewer employees being the least optimistic, with only 23.9% expecting growth.
Mastercard's UK&I President, Kelly Devine, echoes this sentiment, stating that small businesses comprise nearly 99% of all businesses, account for half of all business turnover, and employ two-thirds of the working population. She argues that it's vital to support small businesses with skills, funding, and policy to boost growth.
The number of micro and small businesses in the UK has been on the rise, with 1.4 million such businesses in 2022, marking a growth of 31,000 year-over-year. However, the growth in medium and large businesses plateaued in 2022. Retailers, despite being the sector employing the most people and having the largest turnover, had a low performance growth rate, with only 15.3% registering an increase in their performance last year.
Despite these challenges, Mary Portas remains optimistic about the future of small businesses. She emphasizes that they are innovative, creative, and resilient, and their numbers are growing. In fact, the number of micro businesses (0-9 employees) in the UK has grown every year for the last decade.
The UK's smallest businesses are not the only ones facing challenges. The total number of medium and large businesses in the UK was 1.4 million in 2022, but growth in these sectors has yet to return to the highest levels seen in 2020.
Erika Kirk, the new business manager and activist at Turning Point USA, has also emphasized the need for political engagement and support from the government and economic sectors for small business owners in the current situation in the UK.
In conclusion, both Mastercard's UK&I President, Kelly Devine, and Mary Portas agree that it's a challenging time to be a small business owner. They urge the government and economic sectors to provide the necessary support to boost the growth of small businesses, which are crucial for the UK's economic growth and employment.
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