2022
9
UK Small Business Overview Market Report 2022
2023-01-06T03:02:37+00:00
OX1100573
1495
159140
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Report
en_GB
“Small businesses are highly diverse and collectively account for around a third of the UK economy and are active across virtually every industry. Some have ambitions to grow, while others…

UK Small Business Overview Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Small Business Overview Market Report examines the performance of small businesses across multiple industries, how small businesses compare against their larger competitors and how small businesses plan to increase their ESG efforts. This report covers the UK small business market share, market forecast, market segmentation and key trends in the small business market in 2022.

Current Small Business Market Landscape

The small business market is battling with increasingly difficult economic conditions across the economy. Inflation is eroding consumers spending power and rising energy costs are impacting both consumers and businesses. In the first three quarters of the year, company births are down nearly 6%, while the number of deaths is up by 9%.

Small Business Market Statistics & Trends

Technology, particularly the internet, has changed the potential reach of many small businesses. Cloud computing now allows small businesses to cost-effectively access sophisticated software to a far greater level than ever experienced before. This will be increasingly important as the small business market faces the broader economic issues of cost-of-living pressures and GDP contraction.

Small business market size

  • The 2022 financial year was very difficult for small businesses, the total turnover fell by 11%.
  • £2.8 billion turnover was derived from central and local government, where small companies only represented 1% of overall activity.

Small business market share

  • The private sector dominates small business activity, accounting for a highly significant 98%.
  • Small companies accounted for 34% share of all private sector activity.

 

Future Innovations in the Small Business Market

In the longer term, as the economy improves, enhanced technology will also become available through cloud computing which will provide scalable, cost-effective facilities that were previously the sole preserve of the largest companies, improving both capabilities and marketing sophistication for the small businesses market.

In addition, the gradual progressive developments towards sustainable and ESG issues across multiple industries will create opportunities for the small business market, both direct to consumers and as part of a supply chain for B2B businesses.

To discover more about the UK Small Business Overview Market Report 2022, read our UK B2B eCommerce Market Report 2022, or take a look at our Industrial Market Research Reports.

Quickly Understand

  • How COVID-19 impacted the small business market and how wider economic issues are now impacting small businesses.
  • How the small business market looks to ESG as an essential element of progression and how the varied types of small businesses perform in the even more varied sectors of commerce and industry.
  • How small businesses are performing in each industry sector and how that compares with their larger competitors.
  • The substantial regional differences in the small business market.
  • Explores the small business market share and size.

Covered in this Report

Products: Small and medium-sized enterprises in the UK.

Expert Analysis from a Specialist in the Industrial Sector

This report, written by Terry Leggett, a leading analyst in the industrial sector, delivers in-depth commentary and analysis to highlight current trends in the UK small business market and add expert context to the numbers.

Small businesses are highly diverse and collectively account for around a third of the UK economy and are active across virtually every industry. Some have ambitions to grow, while others are lifestyle businesses, but for most businesses their ability to reach a wider geographic area has been revolutionised by the internet offering both marketing and ecommerce opportunities. Now cloud computing is allowing them to access the latest highly sophisticated software, further equating the competitive playing field, with such technology previously the sole preserve of larger business with large financial resources.”

Terry Leggett - Senior Analyst

Terry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
      • Figure 1: Definition of company sizes (number of staff and millions of euros for turnover or balance sheet), 2021
  2. Executive Summary

    • The five-year outlook for small businesses
      • Figure 2: Small business outlook, 2022-27
    • The market
    • Market size
      • Figure 3: Turnover development of small businesses, 2016-22
    • Role in the economy
      • Figure 4: Market shares by business size, 2016-22
    • Market segmentation by size
      • Figure 5: Turnover analysis of small businesses, by size of company, 2016-22
    • Segmentation by industry sector
      • Figure 6: Segmentation of small business turnover, by sector, 2022
    • Market penetration
      • Figure 7: Small business market share, by sector, 2022
    • Industry structure
    • Industry composition
      • Figure 8: Analysis of the small business sector, by number of companies, 2022
    • Areas of activity
      • Figure 9: Number of small businesses, by activity, 2022
    • Regional activity
      • Figure 10: Number of small businesses, by region, 2022
    • Legal status
      • Figure 11: Composition of small businesses, by legal status, 2022 (number)
    • Business churn
      • Figure 12: Business births and deaths, 2017-22
  3. Issues and Insights

    • New challenges
      • Figure 13: Late payments being faced by small businesses , 2017-22 (average number of days)
    • What next?
  4. Market Size and Performance

    • COVID-19 takes its toll
      • Figure 14: Turnover development of small businesses, 2016-22
    • Taking the brunt of economic contraction
      • Figure 15: Market shares by business size, 2016-22
      • Figure 16: Turnover analysis of small businesses, by size of company, 2016-22
  5. Market Segmentation

    • Areas of business
      • Figure 17: Market share of small businesses, by area of business, 2022
    • Private sector overview
      • Figure 18: Segmentation of small business turnover, by sector, 2022
      • Figure 19: Small business market share, by sector, 2022
    • Analysis by size of company
    • The role of the sole trader
      • Figure 20: Sole trader market share, by sector, 2022
    • Other micro-businesses
      • Figure 21: Micro-business market share, by sector, 2022
    • Other small businesses
      • Figure 22: Other small business market share, by sector, 2022
  6. Market Segmentation – Agriculture, Fishing and Forestry

    • The role of the small business
      • Figure 23: Breakdown of the agriculture, forestry and fishing sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 24: Segmentation of small business activity in agriculture, forestry and fishing, 2022
    • Out-performing the market in 2022
    • Industry churn
      • Figure 25: Company births and deaths in the agricultural sector, 2017-22
  7. Market Segmentation – Mining, Quarrying, Utilities and Waste

    • The role of the small business
      • Figure 26: Breakdown of the mining, quarrying, utilities and waste sector’s turnover, by size of company, 2022 (£ billion)
    • The 2022 performance
  8. Market Segmentation – Manufacturing

    • The role of the small business
      • Figure 27: Breakdown of the manufacturing sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 28: Segmentation of small business activity in manufacturing, 2022 (£ billion)
      • Figure 29: Market penetration of small businesses in manufacturing, by sector, 2022
    • The 2022 performance
    • Industry churn
      • Figure 30: Company births and deaths in the manufacturing sector, 2017-22
  9. Market Segmentation – Construction

    • The role of the small business
      • Figure 31: Breakdown of the construction sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 32: Segmentation of small business activity in construction, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 33: Company births and deaths in the construction sector, 2017-22
  10. Market Segmentation – Wholesale and Retail

    • The role of the small business
      • Figure 34: Breakdown of the wholesale and retail sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 35: Segmentation of small business activity in wholesale and retail, 2022 (£ billion)
    • The 2022 performance
      • Figure 36: 2022 revenue changes in wholesale and retail, by company size and activity (% change)
    • Industry churn
      • Figure 37: Company births and deaths in the motor trades sector, 2017-22
      • Figure 38: Company births and deaths in the other wholesale sector, 2017-22
      • Figure 39: Company births and deaths in the other retail sector, 2017-22
  11. Market Segmentation – Transport and Storage

    • The role of the small business
      • Figure 40: Breakdown of the transport and storage sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 41: Segmentation of small business activity in transport and storage, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 42: Company births and deaths in the transport and storage sector, 2017-22
  12. Market Segmentation – Accommodation and Food Service

    • The role of the small business
      • Figure 43: Breakdown of the accommodation and food service sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 44: Segmentation of small business activity in accommodation and food service, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 45: Company births and deaths in the accommodation and food service sector, 2017-22
  13. Market Segmentation – Information and Communications

    • The role of the small business
      • Figure 46: Breakdown of the information and communications sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 47: Segmentation of small business activity in information and communications, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 48: Company births and deaths in the information and communications sector, 2017-22
  14. Market Segmentation – Real Estate

    • The role of the small business
      • Figure 49: Breakdown of the real estate sector’s turnover, by size of company, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 50: Company births and deaths in the real estate sector, 2017-22
  15. Market Segmentation – Professional, Scientific and Technical Activities

    • The role of the small business
      • Figure 51: Breakdown of the professional, scientific and technical activities sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 52: Segmentation of small business activity in the professional, scientific and technical activities sector, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 53: Company births and deaths in the professional, scientific and technical activities sector, 2017-22
  16. Market Segmentation – Administration and Support Services

    • The role of the small business
      • Figure 54: Breakdown of the administrative and support services sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 55: Segmentation of small business activity in the administrative and support services sector, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 56: Company births and deaths in the professional, scientific and technical activities sector, 2017-22
  17. Market Segmentation – Education

    • The role of the small business
      • Figure 57: Breakdown of the education sector turnover, by size of company, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 58: Company births and deaths in the education sector, 2017-22
  18. Market Segmentation – Human Health and Social Work

    • The role of the small business
      • Figure 59: Breakdown of the human health and social work sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 60: Segmentation of small business activity in the human health and social services sector, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 61: Company births and deaths in the human health and social services sector, 2017-22
  19. Market Segmentation – Arts, Entertainment and Recreation

    • The role of the small business
      • Figure 62: Breakdown of the arts, entertainment and recreation sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
      • Figure 63: Segmentation of small business activity in the arts, entertainment and recreation sector, 2022 (£ billion)
    • The 2022 performance
    • Industry churn
      • Figure 64: Company births and deaths in the arts, entertainment and recreation sector, 2017-22
  20. Market Segmentation – Other Services

    • The role of the small business
      • Figure 65: Breakdown of the other services sector’s turnover, by size of company, 2022 (£ billion)
    • Areas of activity
    • The 2022 performance
  21. Market Segmentation – Government

      • Figure 66: Breakdown of the central and local government sector’s turnover, by size of operator, 2022 (£ billion)
  22. Market Segmentation – Non-profit and Charity

      • Figure 67: Breakdown of the non-profit sector’s turnover, by size of operator, 2022 (£ billion)
  23. Market Segmentation by Region

    • Overview
      • Figure 68: Regional breakdown of small business turnover in the private sector, by region, 2022
      • Figure 69: Market penetration of small companies, by region, 2022
    • Sole traders
      • Figure 70: Regional breakdown of sole traders’ turnover in the private sector, by region, 2022
      • Figure 71: Market penetration of sole traders, by region, 2022
    • Other micro-businesses
      • Figure 72: Regional breakdown of other micro-businesses’ turnover in the private sector, by region, 2022
      • Figure 73: Market penetration of other micro-businesses, by region, 2022
    • Other small businesses
      • Figure 74: Regional breakdown of other small businesses’ turnover in the private sector, by region, 2022
      • Figure 75: Market penetration of other small businesses, by region, 2022
    • Regions
    • North East
      • Figure 76: Breakdown of North East turnover, by size of company, 2022 (£ billion)
      • Figure 77: Company births and deaths in the North East, 2017-22
    • North West
      • Figure 78: Breakdown of North West turnover, by size of company, 2022 (£ billion)
      • Figure 79: Company births and deaths in the North West, 2017-22
    • Yorkshire and the Humber
      • Figure 80: Breakdown of Yorkshire and the Humber turnover, by size of company, 2022 (£ billion)
      • Figure 81: Company births and deaths in Yorkshire and the Humber, 2017-22
    • East Midlands
      • Figure 82: Breakdown of East Midlands turnover, by size of company, 2022 (£ billion)
      • Figure 83: Company births and deaths in the East Midlands, 2017-22
    • West Midlands
      • Figure 84: Breakdown of West Midlands turnover, by size of company, 2022 (£ billion)
      • Figure 85: Company births and deaths in the West Midlands, 2017-22
    • East of England
      • Figure 86: Breakdown of East of England turnover, by size of company, 2022 (£ billion)
      • Figure 87: Company births and deaths in the East of England, 2017-22
    • London
      • Figure 88: Breakdown of London, by size of company, 2022 (£ billion)
      • Figure 89: Company births and deaths in London, 2017-22
    • South East
      • Figure 90: Breakdown of the South East, by size of company, 2022 (£ billion)
      • Figure 91: Company births and deaths in the South East, 2017-22
    • South West
      • Figure 92: Breakdown of the South West, by size of company, 2022 (£ billion)
      • Figure 93: Company births and deaths in the South West, 2017-22
    • Wales
      • Figure 94: Breakdown of Wales, by size of company, 2022 (£ billion)
      • Figure 95: Company births and deaths in Wales, 2017-22
    • Scotland
      • Figure 96: Breakdown of Scotland turnover, by size of company, 2022 (£ billion)
      • Figure 97: Company births and deaths in Scotland, 2017-22
    • Northern Ireland
      • Figure 98: Breakdown of Northern Ireland turnover, by size of company, 2022 (£ billion)
      • Figure 99: Company births and deaths in Northern Ireland, 2017-22
  24. Market Drivers

    • The economy
    • GDP
      • Figure 100: UK GDP, 2016-2022
    • Inflation, a problem for consumers and industry
    • …and despite government support, energy prices are still a major concern
    • High inflation and rising interest rates will weigh down the post-COVID-19 recovery
    • Consumer spending power will be curbed
    • Unemployment is at a near 50-year low
    • COVID-19’s impact on working practices
      • Figure 101: Proportion of workers working from home, hybrid working and travelling to work, 2021-22
    • Employee costs
    • National Minimum Wage and National Living Wage
      • Figure 102: Development of the NMW and NLW, 2016-22 (£s per hour)
      • Figure 103: Development of the real Living Wage, 2016-22 (£ per hour)
    • Apprenticeship Levy
    • Workplace pensions
      • Figure 104: Composition and progression of workplace pension contributions, 2012-22 (% of earnings)
  25. Industry Structure

    • Industry composition
      • Figure 105: Analysis of the small business sector, by number of companies, 2022
      • Figure 106: Analysis of the small business sector, by employment, 2022 (000s employed)
      • Figure 107: Analysis of the small business sector, by turnover, 2022 (£ billion)
    • Areas of activity
      • Figure 108: Number of small businesses, by activity, 2022
    • Regional activity
      • Figure 109: Number of small businesses, by region, 2022
    • Legal status
      • Figure 110: Composition of small businesses, by legal status, 2022 (number)
    • Business churn
      • Figure 111: Average employment level of business start-ups, 2017-21 (number)
      • Figure 112: Business births and deaths, 2017-22
  26. Appendix – Data Sources, Abbreviations and Supporting Information

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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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