40% of UK small businesses planning to hire new employees before the end of March
Britain’s economy saw its fastest annual growth rate on record in 2021 – rising by 7.5% throughout the year. This comes after businesses throughout the UK showed great resolve by adapting to restrictions caused by the Covid pandemic.
This is according to a new report from leading private equity house IW Capital, which analysed the small business sector throughout 2022.
According to the report, one of the most impressive sectors in the UK business scene is the small business sector. SMEs throughout the UK saw impressive growth throughout 2021 and have continued this momentum into 2022 with 56.2% of SMEs reporting a rise in earnings in the last quarter of 2021 versus the same period of 2020.
The small business eco-system is also predicted to be a ‘boom’ sector throughout 2022 for UK business with UK SMEs looking to drive employment and investment numbers with 58% of SMEs predicting an increase in revenue this quarter compared to last year.
After a promising start to the year, 40% of UK small and medium-sized businesses are planning to hire, on average, six new employees before the end of March as they look to continue to grow and progress their company.
SME investing represents an exciting opportunity for UK investors, providing them with tax benefits and a realistic chance to maximise their returns. In 2021, there were a record 319,000 new businesses registered in the UK, with the number of small businesses in the UK now standing at 5.5 million, with recent research showing that two-thirds of the UK workforce want to start their own company. This shows a continued desire, caused by the pandemic, for individuals to start a business of their own in the UK.
With 16% of UK investors looking to back start-ups and newly formed businesses, it also seems they will be given a platform to continue the success and progression of their companies throughout 2022.
Luke Davis, CEO of IW Capital discusses the report’s findings: “The UK small business sector is in an exciting time. SMEs have worked so hard throughout the last year, not just to survive but to prosper, and with restrictions ending, the small business sector looks set to revel in the opportunity to grow their businesses significantly throughout 2022.
“SMEs are set to drive employment and investing throughout 2022 – with nearly half of UK SMEs looking to hire new employees after a promising start to 2022 and UK investors ready to back start-ups and newly formed businesses, SMEs are ready to make 2022 an impressive year and grow as much as possible throughout the year.
“The EIS could also be an important trend throughout 2022. The EIS can be said to offer a win-win situation for both investors and small businesses – providing SMEs with much-needed investment to provide them with a platform to grow, whilst providing investors with tax reliefs to incentivise this investment. Small businesses and SMEs throughout the UK have benefitted enormously from the EIS in the last 25 years, fuelling growth and job creation at an impressive scale.”