How can small businesses help the UK economy top Europe by 2030?

by Startacus Admin

How can small businesses help the UK economy top Europe by 2030?

It's been sometime since the UK's economy was seen as the leading player in Europe. Not only have the power of Western economies been somewhat watered down by the growth of countries like China and India, but the past decade has seen a number of changes within the West itself.

The Eurozone has been on a rollercoaster ride throughout the recession, having numerous effects on neighbouring economies. The initial strength which the common currency lent to the market was soon stunted by concerns over Greece and other borderline economies keen to join the currency.

With the recession finally slipping into the background and the Eurozone slow to direct itself toward recovery, the UK economy finally has the chance to regain the fiscal lead within Europe. 

In addition to government leads, it will be the job of small business to decide whether or not the UK seizes the opportunity – but how? 

A study by the Centre for Economics and Business Research predicts that the UK's economy will overtake Germany's by 2030. One of the pioneering reasons for the UK's success is believed to be an increase in population and a growth in the number of small and medium sized businesses operating in the country.

In addition to their long term benefit, it is the UK's small businesses which are expected to offer a helping hand to the economy in the short term. This is in part due to their innovation and ingenuity.

Through the financial crisis and recession, small businesses have been forced to adapt and evolve in new ways in order to function and succeed in an environment where resources were few and far between. A fine example of small business ingenuity in this regard can be seen in the realm of accounting.

Accounting has historically proved to be one of the larger expenses for smaller firms, putting extra pressure on them during the recession. Making use of online accounting software meant businesses were able to take matters into their own hands and reduce the financial strain they experienced. 

By accounting online, small businesses are able to pay close attention to their finances without requiring a dedicated team of professionals. Accountants can log-in and use the software with those running the business able to do the same, providing a far more transparent and simplistic system for financial management.

The use of cloud storage enables those with the relevant permissions to access key information from anywhere, at any time.

The ability to streamline the most important services in such a way that costs are reduced but productivity is not compromised epitomises the reasons for the success of small businesses in the UK. If small businesses are able to provide the jobs and growth required for a full scale recovery, then the pressure will be eased on governments and the requirement for harsh cuts on the public sector will be reduced. What better news could there be for businesses and the economy?

If you want more small business / accountancy themed post then click on this handy Startacus link! 

This is a guest post for Startacus.

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Published on: 18th January 2014