2020
9
UK Small Business Overview Market Report 2020
2021-01-14T03:03:16+00:00
OX989670
1495
131864
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Report
en_GB
“Small businesses are active in virtually every sector of the UK economy and so some have been strongly impacted by COVID-19. However, the evidence is that during the first wave…

UK Small Business Overview Market Report 2020

£ 1,495 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Small Business market, including the behaviours, preferences and habits of the consumer.

While the widespread disruption of the COVID-19 saw a large impact on many businesses, small businesses were initially more resilient than medium or large businesses in the SME category. With small businesses making up 99% of all UK businesses, the diversity across virtually all areas of business gave them more protection against the harsher hit sectors such as hospitality.

The number of small businesses increased in 2020, growing by 7.4% in the first three quarters of the year. However, with lockdowns announced for January 2021, smaller businesses are predicted to hit harder in the second half of the year. While government support has helped to buoy SME businesses, small businesses may begin to suffer under economic pressures as that support is withdrawn throughout 2021.

Coming out of the pandemic, there will be new opportunities as we enter the recovery period. Market anomalies created by Brexit and the pandemic will give businesses new innovation, opportunities, with much of the predicted impact minimised thanks to Brexit trade agreements.

Read on to discover more details or take a look at all of our UK Industrial market research.

Quickly understand

  • Are small businesses more exposed to the COVID-19 impact?
  • The digital economy is levelling the playing field.

Covered in this report

Small Business Types: Agriculture, mining, manufacturing, construction, wholesale, retail, transport, accommodation, information, real estate, professional, administration, education, health, arts.

Expert analysis from a specialist in the field

Written by Terry Leggett, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Small businesses are active in virtually every sector of the UK economy and so some have been strongly impacted by COVID-19. However, the evidence is that during the first wave they performed better than the UK average, but equally they are expected to suffer to a greater extent in the aftermath of the second wave of infections.

Terry Leggett
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Impact of the January 2021 lockdown and the vaccination rollout
    • Economic and other assumptions
    • Covered in this Report
      • Figure 1: Definition of company sizes (number of staff and millions of euros for turnover or balance sheet)
  2. Executive Summary

    • Impact of COVID-19 on small businesses
      • Figure 2: Short, medium and long-term impact of COVID-19 on small businesses, 7 December 2020 and re-assessed 8 January 2021
    • The market
    • Market size
      • Figure 3: Turnover development of small businesses, 2015-20
    • Market share
      • Figure 4: Comparison of turnover development of small businesses, medium businesses and enterprises, 2015-20
      • Figure 5: Turnover analysis of small business, by size of company, 2015-20
    • Market sectors
      • Figure 6: Breakdown of small business turnover, by sector, 2020
      • Figure 7: Sector penetration by small businesses, by sector 2020
    • Regional activity
      • Figure 8: Regional breakdown of small business turnover in the private sector, by region, 2020
      • Figure 9: Economic penetration of regions by small businesses in the private sector, 2020
    • Companies and brands
    • A very fragmented sector
      • Figure 10: Analysis of the small business sector, by number of companies, 2020
      • Figure 11: Analysis of the small business sector, by employment, 2020 (000s employed)
      • Figure 12: Analysis of the small business sector, by turnover, 2020 (£ billion)
  3. Issues and Insights

    • Are small businesses more exposed to the COVID-19 impact?
    • The digital economy is levelling the playing field
  4. The Market – Key Takeaways

    • COVID-19 slows start-ups and increases deaths
    • 35% of the economy
    • A very diverse sector
    • London – the epicentre
  5. Market Size and Forecast

    • Holding up better than the average during COVID-19
      • Figure 13: Short, medium and long-term impact of COVID-19 on small businesses, 7 December 2020 and re-assessed 8 January 2021
    • Small business development
      • Figure 14: Turnover development of small businesses, 2015-20
    • Small business market share was growing
      • Figure 15: Comparison of turnover development of small businesses, medium businesses and enterprises, 2015-20
    • The role of the small business
      • Figure 16: The role of the small business, 2020
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 7 December 2020)
  6. Market Segmentation by Size of Company

    • Micro-companies leading the way
      • Figure 18: Turnover analysis of small business, by size of company, 2015-20
  7. Market Segmentation by Industry

    • Private sector dominates activity
    • Industrial overview
    • Small businesses
      • Figure 19: Breakdown of small business turnover, by sector, 2020
      • Figure 20: Sector penetration by small businesses, by sector 2020
    • The role of the sole trader
      • Figure 21: Sector penetration by sole traders, by sector 2020
    • Other micro-businesses
      • Figure 22: Sector penetration by other micro-businesses, by sector, 2020
    • Other small businesses
      • Figure 23: Sector penetration by other small businesses, by sector, 2020
    • Agriculture, forestry and fishing
    • The role of the small business
      • Figure 24: Breakdown of the agriculture, forestry and fishing sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 25: Births and deaths in the agriculture, forestry and fishing sector, 2017-20 third quarter (number)
    • Mining and quarrying, utilities and waste
    • The role of the small business
      • Figure 26: Breakdown of the mining and quarrying, utilities and waste sector turnover, by size of company, 2020 (£ billion)
    • Manufacturing
    • The role of the small business
      • Figure 27: Breakdown of the manufacturing sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 28: Births and deaths in the manufacturing sector, 2017-20 third quarter (number)
    • Construction
    • The role of the small business
      • Figure 29: Breakdown of the construction sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 30: Births and deaths in the construction sector, 2017-20 third quarter (number)
    • Wholesale and retail
    • The role of the small business
      • Figure 31: Breakdown of the wholesale and retail sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 32: Births and deaths in the motor trade, wholesale and retail sector, 2017-20 third quarter (number)
    • Transportation and storage
    • The role of the small business
      • Figure 33: Breakdown of the transportation and storage sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 34: Births and deaths in the transport and storage sector, 2017-20 third quarter (number)
    • Accommodation and food services
    • The role of the small business
      • Figure 35: Breakdown of the accommodation and food services sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 36: Births and deaths in the accommodation and food services sector, 2017-20 third quarter (number)
    • Information and communication
    • The role of the small business
      • Figure 37: Breakdown of the information and communication sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 38: Births and deaths in the information and communication sector, 2017-20 third quarter (number)
    • Financial and insurance activities
    • Real estate
    • The role of the small business
      • Figure 39: Breakdown of the real estate sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 40: Births and deaths in the real estate sector, 2017-20 third quarter (number)
    • Professional, scientific and technical activities
    • The role of the small business
      • Figure 41: Breakdown of the professional, scientific and technical sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 42: Births and deaths in the professional, scientific and technical sector, 2017-20 third quarter (number)
    • Administrative and support services
    • The role of the small business
      • Figure 43: Breakdown of the administrative and support services sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 44: Births and deaths in the administrative and support services sector, 2017-20 third quarter (number)
    • Education
    • The role of the small business
      • Figure 45: Breakdown of the education sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 46: Births and deaths in the education sector, 2017-20 third quarter (number)
    • Human health and social work activities
    • The role of the small business
      • Figure 47: Breakdown of the human health and social work sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 48: Births and deaths in the human health and social work sector, 2017-20 third quarter (number)
    • Arts, entertainment and recreation
    • The role of the small business
      • Figure 49: Breakdown of the arts, entertainment and recreation sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
      • Figure 50: Births and deaths in the arts, entertainment and recreation sector, 2017-20 third quarter (number)
    • Other service activities
    • The role of the small business
      • Figure 51: Breakdown of the other service activities sector turnover, by size of company, 2020 (£ billion)
    • Changes during 2020
  8. Market Segmentation by Region

    • Overview
      • Figure 52: Regional breakdown of small business turnover in the private sector, by region, 2020
      • Figure 53: economic penetration of regions by small businesses in the private sector, 2020
    • Sole traders
      • Figure 54: Regional breakdown of sole trader turnover in the private sector, by region, 2020
      • Figure 55: Economic penetration of regions by sole traders in the private sector, 2020
    • Other micro-businesses
      • Figure 56: Regional breakdown of other micro-business turnover in the private sector, by region, 2020
      • Figure 57: Economic penetration of regions by other micro-businesses in the private sector, 2020
    • Other small businesses
      • Figure 58: Regional breakdown of other small business turnover in the private sector, by region, 2020
      • Figure 59: economic penetration of regions by other small businesses in the private sector, 2020
    • The regions
    • North East
      • Figure 60: Breakdown of the North East turnover, by size of company, 2020 (£ billion)
    • North West
      • Figure 61: Breakdown of the North West turnover, by size of company, 2020 (£ billion)
    • Yorkshire and the Humber
      • Figure 62: Breakdown of the Yorkshire and the Humber turnover, by size of company, 2020 (£ billion)
    • East Midlands
      • Figure 63: Breakdown of the East Midlands turnover, by size of company, 2020 (£ billion)
    • West Midlands
      • Figure 64: Breakdown of the West Midlands turnover, by size of company, 2020 (£ billion)
    • East of England
      • Figure 65: Breakdown of the East of England turnover, by size of company, 2020 (£ billion)
    • London
      • Figure 66: Breakdown of the London turnover, by size of company, 2020 (£ billion)
    • South East
      • Figure 67: Breakdown of the South East turnover, by size of company, 2020 (£ billion)
    • South West
      • Figure 68: Breakdown of the South West turnover, by size of company, 2020 (£ billion)
    • Wales
      • Figure 69: Breakdown of the Wales turnover, by size of company, 2020 (£ billion)
    • Scotland
      • Figure 70: Breakdown of the Scotland turnover, by size of company, 2020 (£ billion)
    • Northern Ireland
      • Figure 71: Breakdown of the Northern Ireland turnover, by size of company, 2020 (£ billion)
  9. COVID-19 Related Market Drivers

    • General
    • Bank rate
    • The Coronavirus Job Retention Scheme
      • Figure 72: Number of furloughed employments, March-August 2020
      • Figure 73: Coronavirus Job Retention Scheme claims, at 31 August 2020
    • Financial support for SMEs
    • Term Funding Scheme
    • Asset Purchase Facility
    • Contingent Term Repo Facility
    • Coronavirus Business Interruption Loan Scheme
    • Support for innovative businesses
    • Bounce Back Loans
    • Support for UK employers
    • Grants for certain small enterprises
    • Financial support for the self-employed and for members of partnerships
    • Tax deferral and support for payment of tax
    • Business rates relief
    • VAT reduction
  10. Other Market Drivers

    • The Brexit implications
    • Finance
    • Supply chain and exports
    • Workforce implications
    • Innovation and investment
    • Data protection
    • Intellectual property
    • Business churn
      • Figure 74: Business births and deaths, 2012-19
    • Employment costs
    • National Minimum Wage and National Living Wage
      • Figure 75: Development of the NMW and NLW, 1999-2020 (£s per hour rate)
    • Apprenticeship Levy
    • Workplace pensions
      • Figure 76: Composition and progression of workplace pension contributions, 2012-20 (% of earnings)
  11. Industry Structure

    • Industry composition
      • Figure 77: Analysis of the small business sector, by number of companies, 2020
      • Figure 78: Analysis of the small business sector, by employment, 2020 (000s employed)
      • Figure 79: Analysis of the small business sector, by turnover, 2020 (£ billion)
    • Activities
      • Figure 80: Activity breakdown of small businesses, by sector, 2020
    • Regional activity
      • Figure 81: Regional breakdown of small businesses, by region, 2020
    • Legal status
      • Figure 82: Analysis of legal status of small businesses, 2020 (number)
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations

About the report

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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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