Two-fifths of small businesses (43%) report that their performance is back to pre-pandemic levels, with nearly a third (30%) stating they are performing better than they were in February 2020.
The research from Enterprise Nation and Starling Bank reveals that while 40% of businesses are yet to bounce back, more (43%) say they are recovering and just 5% are concerned they won鈥檛 reach pre-pandemic performance.
More than 810,000 new businesses were founded in the 海角视频 between March 2020 and March 2021, the for creation on record, according to data from Companies House. Although the rate of business failure was high during the period, with 437,790 businesses having to shutter their doors, this was by far outstripped by new business formation. In Q1 2021 alone, 211,368 new businesses were registered with Companies House.
鈥楾he Great British Bounceback鈥 has been driven by businesses' continued entrepreneurialism; more than half (53%) adapted their company鈥檚 services and activities during the pandemic and more than a quarter (28%) launched entirely new products and services in line with changing customer needs. One in 10 small businesses (11%) expanded into a new industry, while 5% even decided to start a new business altogether.
The majority (65%) of those surveyed predict that 2022 will be a year of strong performance. Amid continued labour shortages, supply chain issues and rising material costs creating a challenging business environment, only 3% of small businesses report that they aren鈥檛 resilient. In fact, two thirds (65%) are optimistic for 2022, with the same amount confident they鈥檒l increase their turnover.
When asked about their strategy for the year ahead, small businesses indicated that they will build on the valuable lessons of the pandemic. Some 60% said they planned to develop new services in 2022, while 45% said they would be investing in technology and 42% said that employee training would be a top priority.
Keshia Sakarah, owner of Caribe restaurant in London and a Starling Bank business customer said: 鈥淚 started Caribe just before the pandemic began - it really tested my business. By engaging with my local community on social channels, and pivoting to digital ordering and delivery, we鈥檝e had more customers than ever before. I鈥檓 excited for 2022 and whilst I know I鈥檒l still face challenges, I鈥檓 confident that with creative and entrepreneurial thinking, Caribe will continue to thrive.鈥
Symmie Swil, Head of SME Banking at Starling Bank, said: 鈥淥ur customers are innovating at speed, they鈥檙e resilient, and are excited about the opportunities to thrive in a changing environment. Like our customers, Starling adapted our business to meet changing demands, and we will continue innovating to support the evolving needs of our entrepreneurial customers.鈥
Emma Jones, Founder of Enterprise Nation, said: 鈥淪mall businesses haven鈥檛 just bounced back this year - they鈥檝e bounced forward. As we enter the new year with continued uncertainty, it鈥檚 encouraging to see so many businesses confident about what鈥檚 in store.鈥
To help small businesses take flight in 2022, Starling Bank partnered with business expert Della Hudson for a series of Flying Lessons, which can be found .
