Why supporting small businesses is so important.
Here's some facts about small business in the UK that you might not know.
99.9% of all businesses are classed as small to medium-sized enterprises, employing between 1 and 249 employees.
• 0.6% are medium-sized businesses (50 – 259 employees)
• Less than 4% are small businesses (10 – 49 employees)
• 96% are microbusinesses (0 – 9 employees) (https://www.smeloans.co.uk/blog/micro-business-statistics-uk/)
That leaves a miniscule 0.01% of all businesses as large businesses!
Why is this important I hear you shout?
“SMEs account for three fifths of the employment and around half of turnover in the UK private sector.” (https://www.fsb.org.uk/uk-small-business-statistics.html)
More than half of the UK’s economy is supported by small businesses.
Great, what’s your point?
Many small businesses promote the fact that when you buy from them, they do a happy dance, which is true. We all get a YIPPEEEE moment when our phone makes a Chaching notification. BUT more than that, you are actually supporting our country more than you probably know!
“Big tech companies like Apple Inc. and Alphabet Inc.’s Google have used such royalty payments to lower their tax burden, according to a report from the U.K. think tank TaxWatch. Companies can reduce profits in higher-taxed jurisdictions by having those subsidiaries pay royalties to another corporate body that technically holds the intellectual property and is based in a lower-tax state like Ireland.” (https://www.bloomberg.com/news/articles/2021-03-06/u-k-takes-step-that-may-impact-tax-loophole-favored-by-big-tech)
You’ve probably seen it in the news, massive tech giants (but not only tech companies) have managed to dodge paying A LOT of tax thanks to our tax laws. Thankfully, there is talk about this being changed so that no one misses out BUT that’s going to take a while to come in.
Small businesses in the UK have to pay tax on every penny over £1000 they’ve made and the tax man is strict, let me tell you! Although you hear, sometimes, that a sole trader has managed to con the tax man out of thousands of pounds these stories are few and far between. Plus our tax returns are thorough and small businesses have to show EVERYTHING so there is no hiding.
When you buy from a small business, you are not only helping to pay someone’s mortgage or send their kids to a sports club, you are actually investing in the UK economy too. Without our small businesses and sole traders our economy would collapse. These big businesses may employ thousands of people but they can’t employ all of us?
There are, of course, so many more benefits to buying from small and micro businesses such as the personalised service, you can put a face to the businesses, you’re investing in the local area and so many more things.
I think the “happy dance” phrase associated with small businesses has been used so much that people actually forget the wider impact of buying from small businesses and that’s the point of this blog. Small business owners and micro business owners like myself are more than just a happy dance meme.
I would love to be able to compete, price wise, advertising wise and scalability wise with the likes of Amazon BUT as a one woman show I don’t have that capability. But what I can tell you is… I pay my tax, I buy from other small businesses and I really am passionate about the service you’ll receive as a customer.
So next time you’re in the market for something, and if you’re budget allows, support a small business because they really do so much more for you than you’ll ever know.