Top 5 UK Small Business News Stories of the Month

Top 5 UK Small Business News Stories of the Month

As the UK slowly recovers from the pandemic slump, the UK Small Business sector continues to make headlines with innovation and perseverance.

Here are the top 5 UK small business news stories of the month.

1. UK Small Business Revenue Soars Amidst Pandemic

Small businesses in the UK are bouncing back from the pandemic slump, with many reporting higher revenues than pre-pandemic levels. The latest data from the SME Finance Monitor shows that small businesses are more optimistic about the future, with over half expecting to grow in the coming year.

The success of small businesses can be attributed to their ability to adapt to new circumstances amidst a constantly changing environment. For instance, many small businesses have switched to online sales and established new partnerships to reach their customers.

2. British Small Businesses Embrace ‘Buy Now, Pay Later’ Schemes

Small businesses are looking to boost their sales by offering “buy now, pay later” schemes to their customers. This new trend has caught on like wildfire in the UK since the pandemic and has cushioned the effects of COVID-19 on many small businesses’ finances.

The “buy now, pay later” financing model involves a customer paying a deposit to secure the goods or services and then paying the rest in instalments over a period of time. Customers who cannot afford to pay the total amount upfront find this financing model attractive, and it appears to be working in favour of many small businesses in the UK.

3. Small Businesses Selling on Amazon Report Increase in Sales

During the pandemic, many small businesses in the UK have found a home on Amazon’s online marketplace, with sellers reporting a surge in sales in June 2021. Indeed, Amazon’s global sales grew by 44% in Q1 2021, marking the biggest increase in its history.

The online marketplace appears to be a safe haven for small businesses struggling to attract customers in a volatile market. With its easy-to-use infrastructure and seller-friendly policies, Amazon has proven to be the preferred choice for many small businesses.

4. UK Small Business Owners Report A Boost in Mental Health Amidst Pandemic

While the pandemic has been tough on small businesses, it has also highlighted the resilience of their owners. According to a study by accounting software provider Xero, over three million small business owners feel their mental health has improved since the pandemic hit.

Small business owners reported feeling empowered by the opportunities to work flexibly, dedicating more time to their families, and enjoying the satisfaction of running and growing their business. Moreover, small business owners have been able to share their experiences, thoughts, and feelings with peers in the same predicament, fostering a sense of community.

5. Small Businesses Face Staff Shortage as COVID-19 Comes Under Control

As the UK fully emerges from the pandemic, many small businesses are struggling to attract new staff. The industries such as leisure, hospitality, and transport in particular have told the UK government that there are not enough workers to cater to their needs.

The shortage of workers can be linked to the impact of Brexit and the pandemic on the labour market, with many workers returning to their home countries due to restrictions. As the economy accelerates, this staff shortage may become more pronounced, leaving many businesses struggling to survive.

Conclusion

These top 5 UK small business news stories demonstrate the resilience and adaptability of small businesses amidst the pandemic. From soaring revenue to new financing models, small businesses have weathered the storm and are poised for growth in a post-pandemic world.

However, with staff shortages looming and uncertainty still present in the economy, small businesses must remain watchful and keep their fingers on the pulse to stay ahead of the curve.