Online firms will lead the UK recovery

ONLINE businesses will be at the forefront of Britain’s efforts to recover from the economic disruption caused by Covid-19, International Trade Secretary Liz Truss has said.

In particular, she believes that the online sales and exports generated by small to medium-sized enterprises (SMES), will benefit from the free-trade deals being negotiated by the Government.

“Exports and e-commerce have been essential in keeping the economy going and will continue to be at the forefront as we expand our horizons,” she said. “Our e-commerce industry will benefit from the freetrade agreements we are negotiating, creating exciting new markets and opportunities for British businesses of all sizes and sectors.”

As an example of SMES that have been forced to embrace digital tools and online sales, the Department for International Trade highlighted food group Olly’s Olives, which has been increasingly selling its olives online. Meanwhile, bespoke leather bag maker Rutherfords has focused on online export orders.

SMES have been forced by the pandemic to adopt new technology and processes, as well as learn new skills, to enable them to stay in business.

According to research from software group Intuit Quickbooks, if the new skills and technology adoption persists , SME productivity would boost GDP by £4.1billion a year.

The research, carried out by Oxford Economics, found 86 per cent of SMES have changed the way they do business since Covid-19 hit, making greater use of digital tools.