The Entrepreneurial Spirit of the UK
Since the Covid-19 pandemic arrived in the UK in early 2019, it’s fair to say it’s been a challenging time for businesses of all sizes. Whether you’re an established SME or a budding entrepreneur the issues involved with running a business, caused by the pandemic and the UK’s separation from the EU, have been all too apparent.
For starters, how about inflation rising to more than double the Bank of England’s target? This will inevitably lead to a cost in borrowing meaning that SMEs with company credit cards and existing loans will be forced to spend more on interest payments. Although this is far from good news, in isolation it would be manageable, however businesses must also plan for upcoming increases in corporation tax and the National Living Wage which will further cut into their spending power.
Perhaps though, most concerningly, energy prices are also on the rise ramping up the pressure still further and hampering growth opportunities. That’s even led to some small businesses choosing to keep their offices closed with staff continuing to work from home in order to cut costs where they can, as SMEs do not benefit from the current price cap in the same way as consumers do.
Rising costs are one side of the coin but as the various impacts of Brexit have begun to bite, other issues have come to light. Labour shortages across the board are leading to more time spent trying to recruit the right people. Transport problems due to freight capacity, a shortage of transport workers and post-Brexit logistical challenges are, at best, slowing goods production and deliveries down and, at worst, leading to a lack of availability of certain materials and a hike in prices for raw materials. The UK’s supply chain is creaking and causing much consternation for SMEs who simply want to build, grow and contribute to the economic recovery.
This made us think that surely, in light of everything that has happened in the last two years, the number of new businesses being formed will have taken a huge tumble and the entrepreneurial spirit that the UK is famed for will be on the wane? We were keen to find out and, interestingly, the exact opposite of what you might expect to have happened, has happened.
Growth and opportunity are soaring, so read on to discover which areas in the UK have seen the most new businesses being formed, which business sectors were thriving in 2021 and what the demand is for certain trades and businesses in the UK and where the opportunities lie.