Are we entering a golden age for SMEs?

With the announcement from the government that Plan B restrictions are set to end on January the 26th, along with the easing of supply chain issues globally, it seems that SMEs around the UK could finally be offered some good news. These welcome developments come shortly after the recent reports that showed that London beat New York to win the crown of being the best city in the world for a young entrepreneur – with 115 entrepreneurs in the Forbes Under 30s list being based in the capital, the UK also ranked second in the most popular countries list with 14% of Forbes Under 30 entrepreneurs being based in the UK.

In 2021 there were a record 319,000 new businesses registered in the UK, with the number of retailers in the UK increasing 15% – 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.

Small businesses and SMEs being run by young entrepreneurs have adapted in amazing ways in the UK not just to survive, but to flourish, they are now more versatile, robust, and ready for the future. With 16% of UK investors looking to back start-ups and newly formed businesses it seems they will be given a platform to continue the success and progression of their companies. The community and investors are ready to back small businesses and small businesses are ready to maximise this exciting opportunity.

The SMEs in the UK have worked incredibly hard to navigate the challenging business environment over the past year caused by the emergence of the Omicron Covid strain mixed with the severe issues in the global supply chain. However, with Plan B coming to an end, combined with the easing of the global supply chain issues, 2022 could spell the start of a truly golden age for SMEs moving forward.

Luke Davis, CEO of IW Capital discusses:

“This past year was certainly a challenging one for small business owners. They had to be ready to adapt and change their business in order to combat the volatile business environment. They did this in an extremely impressive way and not only survived but thrived through a tough year.

“Now, the sun is beginning to shine, although challenges still exist. The ending of the Plan B restrictions, along with the easing of the global supply chain issues will be momentous for SMEs throughout the UK. It will alleviate a great deal of stress, meaning they can focus on growing and progressing their business internally and have the opportunity to provide less focus to the external issues.

“Small businesses and SMEs throughout the UK have, in many cases, pivoted and grown throughout the past two years which has been truly inspiring to see. SMEs and the individuals that run them are incredibly inventive and versatile with their companies and making sure they are at the forefront of the UK business scene. It is therefore hugely encouraging to see that consumer and investors alike are recognising that SMEs have now become an indispensable part of the UK economy.

“There is a huge amount of ambition and talent throughout the UK small business ecosystem, and it is exciting times for SMEs, both from an investing and business standpoint. At IW Capital we are always searching and looking to invest in small businesses in their growth journey to provide them with the opportunity to thrive and succeed. It’s great to see the shift from the UK public to have the desire to choose small businesses which paints an optimistic picture for the coming months which are normally crucial for businesses”