Business News Round Up (07/07/2022)
Pandemic-born start-ups could contribute more than £20bn to UK economy
Start-ups founded during the pandemic are forecast to contribute more than £20bn to the UK economy, according to new data. A joint report from NatWest Group and CBI Economics has revealed that in the first year of the pandemic alone, around 800,00 new companies were registered in the UK, an increase of 22% from the prior year. The report also showed how start-ups born in the pandemic were forced to innovate with new technology and business practices to navigate the difficult period. The study found these companies were more likely to incorporate the use of new technologies and sustainable materials. “Pandemic-born businesses – led by ambitious, resilient entrepreneurs – have innovated in so many ways, and at such speed, giving me a great sense of optimism,” said Tony Danker, director-general of CBI. The study further highlighted the UK’s position as an entrepreneurial hub, finding that pre-pandemic, the number of new businesses created as a share of total firms was 13%, a higher figure than both the US and Germany. “A thriving economy is dependent on a flourishing entrepreneurial culture. As we come out of the pandemic, despite rising inflation and the cost-of-living crisis, now is a great time to start a business and become an entrepreneur,” said NatWest Group chief executive Alison Rose.
SMEs across the North boosted by £100m investment
The Northern economy has been boosted by over £100m according to figures released for investments made by FW Capital in the financial year ended 31st March 2022. Joanne Whitfield, North East fund director at FW Capital, said, “£100m of investment funding to the region’s businesses is testament to the thriving and passionate business owners we have in the North. Our aim is to support business growth and encourage job creation. “Loans totalling £35.5m were made directly by FW Capital which attracted co-investment of £69m from the private sector, underlining FW Capital’s long-term economic impact in the region. The investments have helped local businesses across the North to create and safeguard 1677 jobs – a 79 per cent increase from last year’s figures of 935. This growth has been delivered through the three funds FW Capital has under management. The NPIF – FW Capital Debt Finance has funded £88m with a focus on Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, and the Tees Valley. The North East Property Fund has invested £12m and a further £8m was invested through the Tees Valley Catalyst Fund (TVCF), which is managed on behalf of Tees Valley Business, the local growth hub for the Tees Valley and part of the Tees Valley Combined Authority. This fund helps businesses bid for new contracts by providing short-term loans.
https://bdaily.co.uk/articles/2022/07/06/smes-across-the-north-boosted-by-100m-investment
Coronavirus pandemic has led to more “micro-working” – study shows
The coronavirus pandemic has led to more people choosing to become “microworkers”, a new study shows. The use of digital platforms to get paid for short tasks such as coding, translation, surveys and identifying images has provided new opportunities for workers to participate in the labour market but has also exacerbated labour market inequalities, experts have said. A total of 36 per cent of those who took part in a new survey reported starting microwork during the pandemic. Several participants mentioned the Covid pandemic as a significant factor in their reason for starting microwork. Almost all of those who took part in the research – 95 per cent – earned below minimum wage for microwork and almost 2 in 3 earned less than £4 an hour. Half also had full-time work, 29 per cent were in part-time or casual work, and only 20 per cent were not engaged in any other paid work. Most of those who took part in the research wanted to earn extra income, and their microwork was in addition to other paid work. Researchers from the think tank Autonomy and the University of Exeter and the London School of Economics surveyed 1,189 UK-based workers on three major microwork platforms: Clickworker, Prolific and Amazon Mechanical Turk. They also carried out 17 in-depth interviews.
UK food exports to EU fells 19% in 15 months after Brexit, show figures
The value of food exports to the EU dropped by £2.4bn in the first 15 months after Brexit, according to analysis of HMRC data. However, overall exports, which were hit by the double whammy of Brexit red tape as well as decreased demand in hospitality due to the pandemic in 2021, recovered in the first three months of this year, the figures show. Data tracking exports since 1 January 2021, when the Brexit transition year ended, show UK food exports dropped by 19% to £10.4bn in the 15 months to 31 March 2022. This was down from £12.8bn in the previous 15 months, according to the review of the detailed commodity data by Hazlewoods chartered accountancy firm. The fall was driven by a decline in exports of perishable goods, from British strawberries to cheese. Fruit and vegetable exports took the greatest hit, down 44% from £1.5bn in the 15 months before Brexit to £847m in the 15 months after. Meat and fish exports fell 16%, from £3.5bn to £2.9bn, over the same period, while dairy exports also decreased 13% from £1.6bn to £1.4bn. Tightening custom requirements and long port delays mean many UK food producers are no longer able to send perishable goods to the EU. The increase in red tape and costs means it can be very difficult to make a profit exporting fresh produce.