UK small business data in June suggests sales recovery, but jobs continue to decline
by Startacus Admin
Xero and AlphaBeta analysis reveals the latest trends and insight into the impact of COVID-19 on the UK's small business economy
Analysis released today by Xero, the global small business platform, and AlphaBeta(part of Accenture), reveals trends relating to the recovery of the UK’s small business economy following the impact of COVID-19, showing tentative improvements in revenue and payment times. Based on anonymised and aggregated data from hundreds of thousands of Xero customers in the UK, Xero’s Small Business Insights (SBI) showed signs of recovery, with small business revenue improving by 11 per cent in June.
The data shows the construction and manufacturing sectors saw the most revenue improvement in June, whilst the hospitality and arts and recreation sectors experienced the lowest revenue improvement.
Despite signs of recovery being seen in revenue figures, job losses have continued. Employment dropped another 4 per cent in June, most UK regions shed jobs, with the East Midlands and the North West experiencing the biggest drops in employment between March and June.
How the UK data compares internationally
The data shows the different stages of economic recovery between the UK, New Zealand and Australia - comparing how small businesses were impacted in each region.
New Zealand showed the strongest signs of recovery of the three countries so far, despite having the largest drop in revenue when lockdowns were introduced. Its revenues have rebounded strongly to now be similar to June 2019 levels.
Gary Turner, UK managing director of Xero, commented:
“This data suggests initial signs that the UK’s small business economy is starting to recover from the crisis. However, small businesses are yet to show signs of re-hiring in June, with many still subject to restricted trading conditions.
Despite some cautious signs of recovery, small businesses will need more guidance than ever as government support like the furlough scheme and bounce-back loans start to wind down. We’ll be working with our small business customers to help them navigate this next phase - ensuring they get the support they need both from their accountants and the government. ”
Xero has identified the key areas of Government support needed by small businesses in order to rebuild. The Roadmap to Recovery manifesto is part of Xero’s campaign to support small business recovery, and calls for the UK Government to meet the ‘levelling up’ agenda as part of its election promise.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
If you’re thinking about developing a property portfolio as a business, you’ll need to create a structured strategy - these basic tips will help you do just that
Coconut is “a smart accounting tool for self-employed people” enabling users to manage all of the financial admin aspects of their business in one place
If you're considering using digital marketing to grow your small business, these tips will show you how Facebook can help you do just that
If you're considering a Management Buyout (MBO) for your small business, these tips will tell you all you'll need to know
Latest findings of the CUEI revealed outlining the level of entrepreneurialism in the UK and the desires and barriers faced by those starting a business
If you're planning to use your car for your business, here are a few of the key factors you'll need to consider when choosing your insurance
The PhotoTech scaleup BOOM secures major investment to assist with its plans to rewrite the future of commercial photography
SenseCheck is a new platform to help B2B SMEs support each other and get feedback on their marketing plans
Actively recruiting or planning to recruit soon? Here are just a few of the reasons why DBS checks are a must for any hiring manager
The Milton Keynes-based startup that's disrupting the automotive industry with its innovative holographic technology
Published on: 29th July 2020
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- Coutts UK Entrepreneur Index reveals what drives entrepreneurs to start their own businesses 28th Oct 2020 Latest findings of the CUEI revealed outlining the level of entrepreneurialism in the UK and the desires and barriers faced by those starting a business
- BOOM, the PhotoTech scaleup closes a $7m A round 27th Oct 2020 The PhotoTech scaleup BOOM secures major investment to assist with its plans to rewrite the future of commercial photography
- Nova seeking ambitious founders for its co-foundery programme 15th Oct 2020 The lowdown on the Liverpool-based Nova programme that is on the hunt for ambitious, early-stage founders and teams from throughout the UK to be part of its next cohort
- Impact of COVID-19 on female-led businesses 13th Oct 2020 Resilience and Recovery, a new report from The Female Founders Forum is released outlining the impact of COVID-19 on female-founded, equity-backed businesses
