The latest research reveals that some 43 percent of the small businesses claim that their performance is back to pre Covid levels, with 30 percent now performing even better. 40 percent are recovering, and only 5 percent are worried they will not be able to fully bounce back. Over half of small businesses have adapted to changing customer needs during the pandemic, including 28 percent who have launched brand new products and services and 11 percent who expanded into a new industry.
2022 looks set to be a pivotal year for small businesses, with recovery building into long term resilience. Here is a list of the five top small business trends, including the opportunities to make the most of.
Business trends in reconfiguration
The UK economy has recovered faster than predicted at the start of 2021, but the picture is varied in different sectors and regions. According to the Institute for Fiscal Studies (IFS) “a sustained and complete economic recovery remains far from secure”.
Research shows when and how business credit scores of different industries and regions suffered as a result of the pandemic, but also tracks the progress of their recovery. The level by which business credit scores have fallen and small businesses have been impacted has varied hugely, as too has the speed, pace and timing of the recovery in 2021.
Business trends towards the growth of the circular economy
The pandemic has accelerated retail’s transformation with many well known brands disappearing from the high street and smaller retailers launching online and digital hybrid stores. 2022 will see retailers continue to build new business models, driven by sustainability and changing consumer behaviour.
It is predicted that the circular economy will become a must have with consumers increasingly favouring second hand, reusable and recycled products. 49 percent of online adults in the UK prefer to buy environmentally sustainable products. This represents a huge opportunity for small businesses, especially with larger brands looking for new partners to help facilitate their transition.
Business trends in sustainability
Small and medium sized businesses make up 99.9 percent of the UK’s total business population, which means small businesses will be at the forefront of the green economy. To achieve the UK’s target of net zero by 2050, businesses will need to take action and reduce their carbon emissions. One way small businesses can become more sustainable is by getting their energy tariff right. To do this visit the Utility Bidder website to compare tariffs.
Putting sustainability at the heart of your business could help you navigate a range of challenges.
Switching to local suppliers could help you minimize the kind of supply chain issues and materials shortages we have seen in 2021. Innovative green products and services could help you access new sources of low carbon funding, together with new markets, partners and customers. Being able to demonstrate your sustainability credentials will be crucial as global brands and larger companies look to decarbonise their supply chains.