How Important are Small Businesses for the UK Economy?

This weekend on the 7th of December it will be Small Business Saturday!

So we’re taking a look at why small businesses are so important and some of the best ways to celebrate them, this Christmas and beyond!

UK Small Businesses and the Economy

Here in the UK, we are a nation of entrepreneurs and people who love to shop small! The impact of small businesses on the UK economy is absolutely massive, generating a turnover of £2.4 trillion in 2023!  (GOV.UK)

Image: Canva

Whilst it can sometimes feel like our high streets are dominated by giant chains and corporations, 99% of UK businesses are SMEs (small and medium sized enterprises), meaning we are small but mighty! 

Small Business Impact

The contributions of these businesses across all areas of the UK economy is incredibly significant and small businesses are the cornerstone of a thriving economy. As well as their contributions to GDP, small businesses employ around 16.7 million people in the UK, which is nearly two-thirds (61%) of the total workforce.  

These businesses are an incredibly valuable part of local and national communities too. Money spent on products from small businesses often goes further within the local economy than money spent in large corporations. Small business owners profits are likely to be spent locally, in restaurants & shops, creating a knock on effect for local growth. 

Community

Beyond the economic impact, there is much to be gained from shopping small for  your community, as well as the planet and the items you are choosing. 

Smaller business methods are often more sustainable as items typically are produced on a much smaller scale, with more consideration for workers and waste. Transportation impacts are likely to be lower, and small business owners are more likely to be mindful of their local community when it comes to quality, and waste.

Image: Y.O.U & Canva

Additionally, shopping small gives you the opportunity to find products you can’t find anywhere else. Small businesses pride themselves on the quality and design of their product, because their heart and soul has gone into it. So you get something unique and beautifully made, while supporting local people. Your local community is also much better represented in small business, as underrepresented groups who often face barriers in larger corporate worlds are better able to carve out their own opportunities in small business.

This also makes for fantastic customer service, something we pride ourselves on at Y.O.U Underwear! Small business owners are keen to build up relationships, listen to feedback, and offer information for their valued customers. 

Image: Y.O.U

How can you support small businesses?

While the most obvious way to support your favourite small businesses is to shop with them, there are other ways to help them thrive as well.

Leaving reviews online is a fantastic help for small businesses as it authenticates their product, encourages new customers, and provides feedback for future opportunities. Telling them in person will also often make someone's day! 

You can also follow and support them on social media, sign up to newsletters, spread the word among your friends and family, and explore local markets and events to discover new brands!

Y.O.U Underwear

Image: Y.O.U

Here at Y.O.U Underwear, we are incredibly proud of the progress we have made as a small business, and of the community we have built. 

Every purchase makes what we do worthwhile and nothing makes us happier than hearing how much you love your pants! 

Going up against large companies with huge budgets can sometimes feel daunting, but we believe strongly in what we do and we know that the Positive Pants community do too.

Our Favourite Small Businesses

We didn’t get here without our fantastic community and so we wanted to shine a spotlight on some of our favourite small businesses doing amazing things in the local community and beyond!

Black & Beech

An independent and female-led business creating beautiful and colourful products with a feminist message. Everything is produced sustainably and ethically by small independent suppliers with a portion of profits always donated to charities.

Image: Black & Beech

Neve's Bees

A dear friend of Y.O.U, we love Neve's Bees' sustainable skincare products, made free from chemicals by beekeepers Julie and her daughter Neve.

Image: Neve's Bees

  

 
Amy Surman

Find everything you need to start making your own jewellery, from beads to tools, as well as shopping beautiful handmade items. Expert maker Amy also runs brilliant in-person workshops as well as free tutorials on her website. 

Image: Amy Surman

 

Ducky Zebra

If you're looking for sustainable children's clothes then Ducky Zebra have got you covered with their range of colourful organic cotton clothing, designed to inspire confidence and kindness for kids. 

Image: Ducky Zebra

 

Herberowe

A lockdown project which soon developed into a full-time business from Sarah & Colin's Oxfordshire kitchen table, Herberowe create beautifully fragranced small-batch candles and diffusers from sustainable materials. Their scented wax tablets are a firm customer favourite in our Y.O.U Oxford shop!

Image: Herberowe

 

Elvis & Kresse

With a mission to rescue London's damaged fire hoses from landfill, Elvis & Kresse make stunning, high quality handcrafted accessories, while donating 50% of profits to charity.

Image: Elvis & Kresse

 

Y.O.U Underwear

Here at Y.O.U, sustainability and sharing are at the core of our small business. All our products are made from 95% organic cotton and for each item of underwear purchased, we donate a pair to one of our partner charities. 

Image: Y.O.U

Find out more about our Oxford shop journey here

Discover more sustainable businesses

And support female powered companies