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Small Business Overview - UK - November 2018

“Over 99% of companies in the UK are small businesses. There are more than 5.7 million and they account for 34.5% of the overall economy, at £1,428.4 billion. They also account for 39% of all employment in the UK. In the last five years, their overall turnover growth has outperformed large corporates - at 19.4% compared with 14%, and their combined turnover is more than double medium-sized enterprises. However, they form a notoriously difficult sector for B2B marketers to target because of their disparity.”
– Terry Leggett, Senior Analyst

This Report looks at the following areas:

  • Brexit – more or less important to small businesses than multi-nationals?
  • How do potential suppliers reach small businesses?

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
        • Figure 1: Definition of company sizes (number of staff and millions of Euros for turnover or balance sheet)
    • Executive Summary

        • The market
          • Growth slowed in 2018
            • Figure 2: Turnover development of small businesses, 2014-18
          • Micro companies gain the fastest growth, but not in 2018
            • Figure 3: Turnover analysis of small businesses, by size of company, 2014-18
          • Wholesale/retail leads market segmentation
            • Figure 4: Breakdown of small business turnover, by sector, 2018
          • Small businesses have strongest penetration in agriculture
            • Figure 5: Sector penetration of small businesses, by sector, 2018
          • London the major market
            • Figure 6: Regional breakdown of small business turnover in the private sector, by region, 2018
          • Small businesses represent half the Northern Irish economy
            • Figure 7: Economic penetration of regions by small businesses, 2018
          • Legislation/regulation seen to be a bigger obstacle than Brexit
            • Figure 8: Identified obstacles to running an SME, first half 2018
          • Companies and brands
            • An important sector
              • Figure 9: The role of the small business, 2018
            • A disparate sector
              • Figure 10: Analysis of the small business sector, by number of companies, 2018
            • What we think
            • Issues and Insights

              • Brexit – more or less important to small businesses than multi-nationals?
                • The facts
                  • The implications
                    • How do potential suppliers reach small businesses?
                      • The facts
                        • The implications
                        • The Market – What You Need to Know

                          • Five-year growth faster than large companies, but slowing
                            • Growth inhibitors
                              • Figure 11: Identified obstacles to running an SME, first half 2018
                            • Technology leading new start-ups
                            • Market Size

                              • Constant growth of small businesses
                                • Figure 12: Turnover development of small businesses, 2014-18
                              • Faster growth than large businesses
                                • Figure 13: Comparison of turnover development of small businesses, and medium and large enterprises, 2014-18
                              • Growth expectations and obstacles
                                • The role of small businesses
                                  • Figure 14: The role of the small business, 2018
                              • Market Segmentation by Size of Company

                                • Sole traders, micro companies and other small businesses
                                  • Turnover
                                    • Figure 15: Turnover analysis of small businesses, by size of company, 2014-18
                                  • Lower employment by sole traders
                                    • Figure 16: Employment by small businesses, by size of company, 2014-18
                                • Market Segmentation by Industry

                                  • Overview
                                    • Small businesses
                                      • Figure 17: Breakdown of small business turnover, by sector, 2018
                                      • Figure 18: Sector penetration of small businesses, by sector, 2018
                                    • Sole traders
                                      • Figure 19: Sector penetration of sole traders, by sector, 2018
                                    • Other micro
                                      • Figure 20: Sector penetration of other micro companies, by sector, 2018
                                    • Other small businesses
                                      • Figure 21: Sector penetration of other small companies, by sector, 2018
                                    • Agriculture, forestry and fishing
                                      • Figure 22: Breakdown of the agriculture, forestry and fishing sector turnover, by size of company, 2018
                                    • Mining and quarrying, utilities and waste
                                      • Figure 23: Breakdown of the mining and quarrying, utilities and waste sector turnover, by size of company, 2018
                                    • Manufacturing
                                      • Figure 24: Breakdown of the manufacturing sector turnover, by size of company, 2018
                                    • Construction
                                      • Figure 25: Breakdown of the construction sector turnover, by size of company, 2018
                                    • Wholesale and retail
                                      • Figure 26: Breakdown of the wholesale and retail sector turnover, by size of company, 2018
                                    • Transportation and storage
                                      • Figure 27: Breakdown of the transportation and storage sector turnover, by size of company, 2018
                                    • Accommodation and food services
                                      • Figure 28: Breakdown of the accommodation and food services sector turnover, by size of company, 2018
                                    • Information and communication
                                      • Figure 29: Breakdown of the information and communication sector turnover, by size of company, 2018
                                    • Financial and insurance activities
                                      • Real estate activities
                                        • Figure 30: Breakdown of the real estate sector turnover, by size of company, 2018
                                      • Professional, scientific and technical activities
                                        • Figure 31: Breakdown of the professional, scientific and technical activities sector turnover, by size of company, 2018
                                      • Administrative and support services
                                        • Figure 32: Breakdown of the administrative and support services sector turnover, by size of company, 2018
                                      • Education
                                        • Figure 33: Breakdown of the education sector turnover, by size of company, 2018
                                      • Human health and social work activities
                                        • Figure 34: Breakdown of the human health and social work activities sector turnover, by size of company, 2018
                                      • Arts, entertainment and recreation
                                        • Figure 35: Breakdown of the arts, entertainment and recreation sector turnover, by size of company, 2018
                                      • Other service activities
                                        • Figure 36: Breakdown of the other service activities sector turnover, by size of company, 2018
                                    • Market Segmentation by Region

                                      • Overview
                                        • Small businesses
                                          • Figure 37: Regional breakdown of small business turnover in the private sector, by region, 2018
                                          • Figure 38: Economic penetration of regions by small businesses, 2018
                                        • Sole traders
                                          • Figure 39: Economic penetration of regions by sole traders, 2018
                                        • Other micro businesses
                                          • Figure 40: Economic penetration of regions by other micro companies, 2018
                                        • Other small businesses
                                          • Figure 41: Economic penetration of regions by other small companies, 2018
                                        • North East
                                          • Figure 42: Breakdown of the North East Economy, by size of company, 2018
                                        • North West
                                          • Figure 43: Breakdown of the North West economy, by size of company, 2018
                                        • Yorkshire and the Humber
                                          • Figure 44: Breakdown of the Yorkshire and the Humber economy, by size of company, 2018
                                        • East Midlands
                                          • Figure 45: Breakdown of the East Midlands economy, by size of company, 2018
                                        • West Midlands
                                          • Figure 46: Breakdown of the West Midlands economy, by size of company, 2018
                                        • East of England
                                          • Figure 47: Breakdown of the East of England economy, by size of company, 2018
                                        • London
                                          • Figure 48: Breakdown of the London economy, by size of company, 2018
                                        • South East
                                          • Figure 49: Breakdown of the South East economy, by size of company, 2018
                                        • South West
                                          • Figure 50: Breakdown of the South West economy, by size of company, 2018
                                        • Wales
                                          • Figure 51: Breakdown of the Wales economy, by size of company, 2018
                                        • Scotland
                                          • Figure 52: Breakdown of the Scotland economy, by size of company, 2018
                                        • Northern Ireland
                                          • Figure 53: Breakdown of the Scotland economy, by size of company, 2018
                                      • Success Factors for Small Businesses

                                        • General factors
                                          • Why companies fail
                                          • The Impact of the Economy

                                              • GDP
                                                • Figure 54: GDP overall quarterly development, Q4 2016-Q2 2018
                                                • Figure 55: GDP quarterly development, by sector, 2004-18
                                                • Figure 56: Forecast GDP development, 2017-22
                                            • Market Trends

                                              • Business churn
                                                • Figure 57: Business births and deaths, 2012-16
                                              • Legislative pressures on margins
                                                • Living wage
                                                  • Figure 58: National living wage rates, 2016-18
                                                • The Apprenticeship Levy
                                                  • Workplace pensions
                                                      • Figure 59: Composition and progression of workplace pension contributions, 2012-19 (% of earnings)
                                                    • Business rates
                                                    • Market Drivers

                                                      • Brexit
                                                        • Figure 60: Specific SME Brexit concerns, 2018
                                                        • Figure 61: Brexit seen as a major obstacle to success, by size of company
                                                        • Figure 62: Brexit seen as a major obstacle to success, by innovation capacity and international trading activity
                                                      • Access to finance
                                                        • Small business grants
                                                          • The internet
                                                            • Figure 63: Worldwide internet usage, by region 2010-17 (millions and %)
                                                            • Figure 64: Proportion of businesses with internet access in the UK, by size of company, 2012-16 (%)
                                                            • Figure 65: Proportion of businesses with Internet access and type of connection, by number of employees, 2012-16 (%)
                                                            • Figure 66: Proportion of businesses by maximum contracted internet connection speed, by number of employees, 2012-16 (%)
                                                          • Serviced offices
                                                              • Figure 67: Market for serviced offices, 2013-17 actual and 2018-23 forecast
                                                          • Industry Structure

                                                              • Figure 68: Analysis of the small business sector, by number of companies, 2018
                                                              • Figure 69: Analysis of the small business sector, by employment, 2018 (000s employed)
                                                              • Figure 70: Analysis of the small business sector, by turnover, 2018 (£ billion)
                                                              • Figure 71: Activity breakdown of small businesses, by sector, 2018
                                                              • Figure 72: Regional breakdown of small businesses, by region, 2018
                                                              • Figure 73: Analysis of the legal status of the small business sector, by number of companies, 2018
                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                              • Abbreviations
                                                                • Methodology

                                                                Small Business Overview - UK - November 2018

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