Business News Round Up (28/11/2023)
GoDaddy study reveals ‘huge’ impact made by microbusinesses to local economies
Microbusinesses generate new jobs, raise income, and significantly increase GDP in their local communities, according to a ‘landmark’ report that pinpoints the tangible economic benefits that entrepreneurs bring to their local areas. The findings come from Venture Forward, an annual international research initiative by GoDaddy and additional analysis from economics consultancy Frontier Economics. In what is believed to be the first study of its kind in the United Kingdom, the results demonstrate the significant economic impact that start-ups can have on their communities. Venture Forward maps the concentration of digital microbusinesses, typically defined as having 10 employees or fewer, with a unique domain and active website, against local population sizes to assign every constituency in Britain a Microbusiness Density figure, which measures the number of microbusinesses per 100 people in each constituency.
UK retains tech crown amid decline in funding
Britain remains the key European destination for investment in technology companies, although other countries are making up ground, according to new analysis. Following a surge in capital spending in 2021, investment worldwide has dipped this year, says the latest annual State of European Tech report by Atomico. UK investment is forecast to fall by almost half to $12.7 billion, compared with $24.7bn last year and $36bn in 2021. Other countries are also feeling the squeeze with France expected to suffer a 40% fall to $7.9bn and Germany looking at a 26% decline to $7.8bn. The biggest concern among respondents to Atomico’s survey was access to capital, while the conflicts in Ukraine and the Middle East have added to the uncertainty. Among those that are continuing to benefit from funding are companies operating in artificial intelligence.
https://dailybusinessgroup.co.uk/2023/11/uk-retains-tech-crown-amid-decline-in-funding/
CBI calls for green investment plan and end to short-termism
The Confederation of British Industry (CBI) has called for a new green investment plan and an end to short-termism, ahead of an expected general election next year. “With global instability showing little signs of abating, businesses across the UK are facing a myriad of challenges ahead of the next election,” said its director general Rain Newton-Smith. “The UK economy needs to shift gears from short-term shock absorption to taking the long-term decisions needed to unlock its true potential.” Among the CBI’s requests for the next UK Government is a new net zero investment plan, something that has been echoed by major businesses and charities. The government should put in place “ambitious but certain policy commitments”, the CBI said in a new report. It comes weeks after Prime Minister Rishi Sunak rowed back on a series of pledges the government had made which were designed to help decarbonise the UK.
https://www.insider.co.uk/news/cbi-calls-green-investment-plan-31544370
Tech leaders debate UK’s skills crisis in Parliament
UK tech chiefs gathered in Parliament last night to discuss the country’s chronic skills crisis with MPs, business leaders and government policy makers. Speaking at the Parliament Street think tank’s Digital Skills Summit on Monday night, the panel of experts debated the role businesses should play plugging the skills gap and encouraging more young people to enter the world of tech. “Embracing data transformation, machine learning, and artificial intelligence is not just a nice to have; it’s a societal imperative and will be the differentiator in the job market,” said Daniel Haville, founder, BI:PROCSI. “To harness the full potential of these technologies, there is an urgent need for a collective effort to redefine education and workforce strategies, ensuring that every citizen has the tools to navigate the complexities of the digital landscape and contribute meaningfully to the nation’s technological advancement, directly impacting the UK’s digital economy.”
https://businesscloud.co.uk/news/tech-leaders-debate-uks-skills-crisis-in-parliament/