In a recent report, it was shown that the COVID-19 pandemic unleashed a huge wave of entrepreneurialism around the country. Individuals took advantage of technology and flexible working to start a new business.
"Online retail saw the biggest growth with 98,000 new businesses!"
This has been the biggest growth sector for a number of years as people take artisan hobbies and turn them into businesses. The pandemic supercharged this trend.
Recruitment is seeing a big rise in new businesses too. The red hot jobs market means an 11% growth in the last year in just recruitment businesses that spring up to meet demand from both businesses looking for staff and individuals looking to move jobs.
It's surprising that there is so much growth in new businesses. You'd think that with the economic gloom hanging over the country, there would be a downward trend as people want to be secure in their employment, but the facts so the complete opposite. This is a sign of long-term optimism throughout the country and I certainly applaud it.
However, a number of these new businesses may fail in the coming months as self-funding runs out and they're not making the profit they need to sustain themselves. New businesses can grow strongly out of a recession, but you have to get the finances right, and listening to your accountant is incredibly important.
"There is a need for a higher level of financing to help these businesses scale up!"
Banks are likely to pull in their lending if we're heading into recession so it really is vital the Government offers the same level of support to small businesses as they are to individuals.
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) may play a big part in the future of the small business community in the United Kingdom.
Liz Truss knows that small businesses drive the economy forward, so I look forward to seeing what support she and Kwasi Kwarteng will announce in the Autumn Statement.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about funding for small businesses or if you have an idea for a business of your own, it may be a great idea to give me a call on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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