2021
9
UK Small Business Overview Market Report 2021
2022-01-08T03:17:50+00:00
OX1050509
1495
146669
[{"name":"Business and Industrial","url":"https:\/\/store.mintel.com\/industries\/business-industrial"}]
Report
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“Small businesses, active across every market, are not homogenous and COVID-19 has impacted them to a widely varying extent. Sole traders in particular have seen turnover decline but in total…

UK Small Business Overview Market Report 2021

£ 1,495 (Excl.Tax)

Description

The UK Small Business Overview industry report identifies consumer attitudes towards small business owner statistics, regional differences and industry structure in the UK. This market report covers the small business owners landscape, market size, market forecast, market segmentation and industry trends for the Small Business Owners Overview market in the UK.

Current Market Landscape

Small business turnover rose in FY 2021, albeit by less than 1% compared with 3% growth in the previous year and a buoyant 9% in 2019. Despite the small turnover growth, this was in marked contrast to the 9.5% fall in revenues for large businesses. Small businesses now account for 36% of the entire economy.

Small business turnover rose in FY 2021, albeit by less than 1% compared with 3% growth in the previous year and a buoyant 9% in 2019. Despite the small turnover growth, this was in marked contrast to the 9.5% fall in revenues for large businesses. Small businesses now account for 36% of the entire economy.

Future Market Trends in Small Businesses 

Business ‘deaths’ are increasing greatly, with the number of casualties rising by a significant 46.7% between April and September 2021 compared with the previous year. However, the sector’s resilience, optimism and opportunism are typified by company start-ups simultaneously increasing by 15.6%.

Small businesses are famed for their flexibility, Brexit and now COVID-19 testing this to the full, with the sector’s outstanding feature being its ability to identify and develop products and services in line with market changes. From niche offerings, some of the businesses develop into medium and large companies or develop mainstream products. Technology has been a recent core opportunity, and attention is continuing to turn to products and services to help the zero-emissions target as climate change gains further attention.

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

Quickly understand

  • How COVID-19 has impacted the industry structure and different sectors.
  • How Brexit has impacted the sector and how small businesses cope with the changes.
  • 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 sector.

Expert analysis from a specialist in the field

This report, written by Terry Leggett, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Small businesses, active across every market, are not homogenous and COVID-19 has impacted them to a widely varying extent. Sole traders in particular have seen turnover decline but in total small businesses have very strongly outperformed the large businesses, testament to the hard work, ingenuity and flexibility of this hugely important part of the UK economy.

Terry Leggett - Research AnalystTerry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • 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 impact of COVID-19 on small businesses
      • Figure 2: Short, medium and long-term impact of COVID-19 on small business, 2021
    • The market
    • Market size
      • Figure 3: Turnover development of small businesses, 2016-21
    • Sole traders impacted the most strongly
      • Figure 4: Turnover analysis of small business, by size of company, 2016-21
    • Out-performed the large businesses
      • Figure 5: Comparison of turnover development of small businesses, medium businesses and enterprises, 2016-21
    • Every type of activity
      • Figure 6: Segmentation of small business turnover, by sector, 2021
      • Figure 7: Small business market share, by sector, 2021
    • The industry
    • A vast sector
      • Figure 8: Analysis of the small business sector, by number of companies, 2021
    • Diverse areas of activity
      • Figure 9: Number of small businesses, by activity, 2021
    • Across the regions
      • Figure 10: Number of small businesses, by region, 2021
    • Industry churn
      • Figure 11: Business births and deaths, 2017-21
  3. Issues and Insights

    • Is COVID-19 more severe for small businesses?
      • Figure 12: Comparison of revenue changes in 2021, by company size
    • Is climate change an opportunity for small businesses?
      • Figure 13: Generational differences in proportion reporting they are prepared to pay more for sustainable products, 2021
  4. Market Size and Performance

    • The impact of COVID-19 on small businesses
      • Figure 14: Short, medium and long-term impact of COVID-19 on small business, 2021
    • Small growth in the face of COVID-19
      • Figure 15: Turnover development of small businesses, 2016-21
    • The small business market share growth
      • Figure 16: Comparison of turnover development of small businesses, medium businesses and enterprises, 2016-21
      • Figure 17: Turnover analysis of small business, by size of company, 2016-21
  5. Market Segmentation by Private Sector

    • Areas of business
      • Figure 18: Market share of small businesses, by area of business, 2021
    • Private sector overview
      • Figure 19: Segmentation of small business turnover, by sector, 2021
      • Figure 20: Small business market share, by sector, 2021
    • Analysis by size of company
    • The role of the sole trader
      • Figure 21: Sole trader market share, by sector, 2021
    • Other micro-businesses
      • Figure 22: Micro-business market share, by sector, 2021
    • Other small businesses
      • Figure 23: Other small business market share, by sector, 2021
  6. Market Segmentation – Agriculture, Fishing and Forestry

    • The role of the small business
      • Figure 24: Breakdown of the agriculture, forestry and fishing sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 25: Segmentation of small business activity in agriculture, forestry and fishing, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 26: Company births and deaths in the agricultural sector, 2017-21
  7. Market Segmentation – Mining, quarrying, utilities and waste

    • The role of the small business
      • Figure 27: Breakdown of the mining, quarrying, utilities and waste sector turnover, by size of company, 2021 (£ billion)
    • The 2021 performance
  8. Market Segmentation – Manufacturing

    • The role of the small business
      • Figure 28: Breakdown of the manufacturing sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 29: Segmentation of small business activity in manufacturing, 2021 (£ billion)
      • Figure 30: Market penetration of small businesses in manufacturing, by sector, 2021
    • The 2021 performance
    • Industry churn
      • Figure 31: Company births and deaths in the manufacturing sector, 2017-21
  9. Market Segmentation – Construction

    • The role of the small business
      • Figure 32: Breakdown of the construction sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 33: Segmentation of small business activity in construction, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 34: Company births and deaths in the construction sector, 2017-21
  10. Market Segmentation – Wholesale and Retail

    • The role of the small business
      • Figure 35: Breakdown of the wholesale and retail sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 36: Segmentation of small business activity in wholesale and retail, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 37: Company births and deaths in the motor trades sector, 2017-21
      • Figure 38: Company births and deaths in the other wholesale sector, 2017-21
      • Figure 39: Company births and deaths in the other retail sector, 2017-21
  11. Market Segmentation – Transport and Storage

    • The role of the small business
      • Figure 40: Breakdown of the transport and storage sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 41: Segmentation of small business activity in transport and storage, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 42: Company births and deaths in the transport and storage sector, 2017-21
  12. Market Segmentation – Accommodation and Food Service

    • The role of the small business
      • Figure 43: Breakdown of the accommodation and food service sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 44: Segmentation of small business activity in accommodation and food service, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 45: Company births and deaths in the accommodation and food service sector, 2017-21
  13. Market Segmentation – Information and Communications

    • The role of the small business
      • Figure 46: Breakdown of the information and communications sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 47: Segmentation of small business activity in information and communications, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 48: Company births and deaths in the information and communications sector, 2017-21
  14. Market Segmentation – Real Estate

    • The role of the small business
      • Figure 49: Breakdown of the real estate sector turnover, by size of company, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 50: Company births and deaths in the real estate sector, 2017-21
  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 turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 52: Segmentation of small business activity in the professional, scientific and technical activities sector, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 53: Company births and deaths in the professional, scientific and technical activities sector, 2017-21
  16. Market Segmentation – Administrative and Support Services

    • The role of the small business
      • Figure 54: Breakdown of the administrative and support services sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 55: Segmentation of small business activity in the administrative and support services sector, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 56: Company births and deaths in the professional, scientific and technical activities sector, 2017-21
  17. Market Segmentation – Education

    • The role of the small business
      • Figure 57: Breakdown of the education sector turnover, by size of company, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 58: Company births and deaths in the education sector, 2017-21
  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 turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 60: Segmentation of small business activity in the human health and social services sector, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 61: Company births and deaths in the human health and social services sector, 2017-21
  19. Market Segmentation – Arts, Entertainment and Recreation

    • The role of the small business
      • Figure 62: Breakdown of the arts, entertainment and recreation sector turnover, by size of company, 2021 (£ billion)
    • Areas of activity
      • Figure 63: Segmentation of small business activity in the arts, entertainment and recreation sector, 2021 (£ billion)
    • The 2021 performance
    • Industry churn
      • Figure 64: Company births and deaths in the arts, entertainment and recreation sector, 2017-21
  20. Market Segmentation – Other Services

    • The role of the small business
      • Figure 65: Breakdown of the other services sector turnover, by size of company, 2021 (£ billion)
    • The 2021 performance
  21. Market Segmentation – Other

    • Central and local government
      • Figure 66: Breakdown of the central and local government sector turnover, by size of operator, 2021 (£ billion)
    • Non-profit sector
      • Figure 67: Breakdown of the non-profit sector turnover, by size of operator, 2021 (£ billion)
  22. Market Segmentation by Region

    • Overview
      • Figure 68: Regional breakdown of small business turnover in the private sector, by region, 2021
      • Figure 69: Market penetration of small companies, by region, 2021
    • Sole traders
      • Figure 70: Regional breakdown of sole traders’ turnover in the private sector, by region, 2021
      • Figure 71: Market penetration of sole traders, by region, 2021
    • Other micro-businesses
      • Figure 72: Regional breakdown of other micro-business turnover in the private sector, by region, 2021
      • Figure 73: Market penetration of other micro-businesses, by region, 2021
    • Other small businesses
      • Figure 74: Regional breakdown of other small business turnover in the private sector, by region, 2021
      • Figure 75: Market penetration of other small businesses, by region, 2021
    • Regions
    • North East
      • Figure 76: Breakdown of the North East turnover, by size of company, 2021 (£ billion)
      • Figure 77: Company births and deaths in the North East, 2017-21
    • North West
      • Figure 78: Breakdown of the North West turnover, by size of company, 2021 (£ billion)
      • Figure 79: Company births and deaths in the North West, 2017-21
    • Yorkshire and the Humber
      • Figure 80: Breakdown of the Yorkshire and the Humber turnover, by size of company, 2021 (£ billion)
      • Figure 81: Company births and deaths in Yorkshire and the Humber, 2017-21
    • East Midlands
      • Figure 82: Breakdown of the East Midlands turnover, by size of company, 2021 (£ billion)
      • Figure 83: Company births and deaths in the East Midlands, 2017-21
    • West Midlands
      • Figure 84: Breakdown of the West Midlands turnover, by size of company, 2021 (£ billion)
      • Figure 85: Company births and deaths in the West Midlands, 2017-21
    • East of England
      • Figure 86: Breakdown of the east of England turnover, by size of company, 2021 (£ billion)
      • Figure 87: Company births and deaths in the east of England, 2017-21
    • London
      • Figure 88: Breakdown of London, by size of company, 2021 (£ billion)
      • Figure 89: Company births and deaths in London, 2017-21
    • South East
      • Figure 90: Breakdown of the South East, by size of company, 2021 (£ billion)
      • Figure 91: Company births and deaths in the South East, 2017-21
    • South West
      • Figure 92: Breakdown of the South West, by size of company, 2021 (£ billion)
      • Figure 93: Company births and deaths in the South West, 2017-21
    • Wales
      • Figure 94: Breakdown of Wales, by size of company, 2021 (£ billion)
      • Figure 95: Company births and deaths in Wales, 2017-21
    • Scotland
      • Figure 96: Breakdown of Scotland turnover, by size of company, 2021 (£ billion)
      • Figure 97: Company births and deaths in Scotland, 2017-21
    • Northern Ireland
      • Figure 98: Breakdown of Northern Ireland turnover, by size of company, 2021 (£ billion)
      • Figure 99: Company births and deaths in Northern Ireland, 2017-21
  23. Market Drivers

    • The economy and COVID-19
    • Overview
      • Figure 100: Quarterly changes in UK GDP, 2015-21
      • Figure 101: Expected development of the UK economy, 2015-26
    • Small businesses
    • Uptake of COVID-19 financial assistance
    • The Coronavirus Job Retention Scheme
      • Figure 102: Number of furloughed employments, 2020-21
      • Figure 103: Number of furloughed staff in small businesses, by size of business, 2020-21
    • Coronavirus Business Interruption Loan Scheme
    • Bounce Back Loan Scheme
    • Future Fund Scheme
    • Recovery Loan Scheme
    • Financial support for the self-employed and for members of partnerships
    • Business rates relief
    • VAT reduction
    • Deferred VAT
    • Eat out to help out
    • Brexit impact on small business
      • Figure 104: Differences of Brexit impact regarding trading with EU, by company size, 2021 Q3
    • Employment cost impact on small business
      • Figure 105: Development of the NMW and NLW, 1999-2021 (£s per hour rate)
    • Apprenticeship Levy
    • Workplace pensions
      • Figure 106: Composition and progression of workplace pension contributions, 2012-20 (% of earnings)
  24. Industry Structure

    • Industry composition
      • Figure 107: Analysis of the small business sector, by number of companies, 2021
      • Figure 108: Analysis of the small business sector, by employment, 2021 (000s employed)
      • Figure 109: Analysis of the small business sector, by turnover, 2021 (£ billion)
    • Areas of activity
      • Figure 110: Number of small businesses, by activity, 2021
    • Regional activity
      • Figure 111: Number of small businesses, by region, 2021
    • Legal status
      • Figure 112: Composition of small businesses, by legal status, 2021 (number)
    • Business churn
      • Figure 113: Average employment level of business start-ups, 2017-20 (number)
      • Figure 114: Business births and deaths, 2017-21
  25. 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.

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*databooks not available with UK B2B Industry reports.

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