Theta Global Advisors: 800,000 new SMEs in 2020
In 2020, the UK saw 800,000 more small to medium enterprises (SMEs) set up, according to research from Theta Global Advisors.
This increase included businesses starting up both prior to and during the COVID-19 pandemic.
The firm noted that during 2020, small businesses had to be agile, adapting to working from home and the need for flexible working.
The government has announced that corporation tax will rise from 19% to 25% on a sliding scale so as to support SMEs going forward, in addition to the development of Help to Grow schemes, and increases in public trust of small business.
Research collected by Theta found that 66% of Brits said that their trust in small businesses and service providers has grown during the pandemic.
More than a fifth (22%) of decision-makers are looking to hire more employees or consultants this year in order to grow.
A total of 19% of UK workers who work at a small business have won previously inaccessible, large clients and grown as a business through COVID-19.
More than a quarter (26%) of employees at small businesses feel they have been successful during COVID-19.
Chris Biggs, partner at Theta Global Advisors, said: “With companies adopting new policies and a substantial number of SMEs planning to expand in 2021, as well as the government’s support of these expansions with sliding corporate tax scales and Help to Grow schemes, it seems that as we saw over COVID-19, 2021 is an optimum time to be a small business.
“To small businesses, this is great news, with increased public support and new, large clients allowing them to change the landscape and culture in their industries previously dictated by corporate giants.
“In our concerns for what the future looks like for businesses with lockdowns, returning to offices, and economic recovery, we must not forget the success, innovation and resilience of small businesses in the UK.
“We need to continue to support these SMEs on their current growth trajectory as we return to a degree of normalcy.”