Small Businesses Now Make Up 99.8% of the British Economy
More than half of small enterprises claim optimism is key to running a successful business and is crucial to business survival
Small businesses now make up a staggering 99.8% of the British economy, according to a new report by Xero.
While generating 47% of the country’s revenue, the survey found that small to medium sized companies also employ 60% of the British work force.
Of the 1,300 small businesses surveyed, 53% said remaining optimistic was the key to running a successful enterprise.
While 36% were optimistic of their businesses future, 77% said they still had problems they’d like resolved including managing staff and clients (23%), cash flow management (19%) and having time to work on the business (19%).
The survey also highlighted figures from the Office of National Statistics which revealed that in spite of 58% of UK businesses closing before their fifth birthday, drop off rates significantly decline over time as businesses learn, become more resilient, adapt to challenges and build confidence.
Gary Turner, Xero UK managing director, said: “Small businesses are significant economic drivers, improving their outlook lifts the entire economy.”