Moving online ‘saved 75% of UK’s smallest firms’

Almost half of micro businesses have admitted they would have shut if they hadn’t gone digital in the pandemic, a Lloyds Bank report reveals.

Nearly three-quarters of small firms that kept trading had to adapt to do so, with a fifth offering new products and services. More than 1.5million micro businesses ventured online for the first time, with those already there boosting their web trade. The report also found technology has enabled small firms to keep in touch with customers and helped to reduce their costs.

Portsmouth saw the biggest increase in new businesses in a city this year, with the number of new businesses increasing by 33%. Bradford was second with 32% and London third with 31%. Lowest growth out of 21 cities came from Cardiff with just 5%, according to analysis by Instant Offices.

John Williams, head of marketing at the office space broker, said: ”Despite uncertainty, we could see a record number of new companies launching as entrepreneurs emerge across the country.

“The pandemic has seen many new businesses having to pivot to survive. While the exact implications of Covid-19 on business and the economy is still uncertain, the UK entrepreneurial spirit endures.”

The news about successful testing of vaccines, one in Oxford, has led the FTSE 100 into strongly positive territory as investors get their confidence back.

Research by small and medium sized enterprises investment specialists IW Capital has found 44% of investors are now looking to back UK-based companies.

And 27% are looking to invest in sectors created by the crisis, such as PPE, social distancing equipment and virtual solutions.

IW Capital chief executive Luke Davis, said: “The success of these vaccines is a welcome sight for investors who now see an opportunity for growth. And it brings optimism for both investors and small businesses alike.”