According to a recent index conducted by Shopify and Deloitte, entrepreneurs within Shopify’s ecosystem in the UK contributed significantly to the country’s economy in 2022. The data revealed that UK entrepreneurs generated £28.8 billion in business activity and contributed £14.3 billion to the country’s GDP. This success can be attributed to long-term investments in incentives and support structures, which have fostered entrepreneurship and facilitated economic growth.
One of the key findings of the index is that UK businesses experienced an 8 percent growth in exports, reaching £3.2 billion in the past year. This places the UK second only to the US in terms of export growth. Additionally, these entrepreneurs directly supported over 78,000 jobs and nearly 200,000 jobs in total. The significant contributions made by these businesses highlight the crucial role of small business growth and entrepreneurship in driving the UK economy forward.
The index also sheds light on the impact of digital entrepreneurship across the country. It reveals that 60 percent of entrepreneurs are based outside major cities, emphasizing the distributed nature of entrepreneurial activity in the UK. Furthermore, Europe dominates the rankings, with 11 out of the top 20 countries being from the continent. The US secured the top spot globally, followed by Lithuania and Romania.
Jack Kennedy, UK Economist at global hiring platform Indeed, highlighted the importance of job support provided by entrepreneurs. As the UK faces a softening labor market, fostering entrepreneurship becomes even more crucial for economic growth and job creation. Small business growth, driven by entrepreneurship, plays a pivotal role in sustaining the UK economy.
The success of UK entrepreneurs can be attributed to the long-term investments in incentives and support structures that have been put in place. Initiatives such as the British Business Bank’s Start Up Loans program and the recent expansion of investment reliefs by the UK Government have attracted and retained talented entrepreneurs. Additionally, investment in British export support, including efforts like the Export Academy, has facilitated the global expansion of UK businesses.
While the index highlights the positive contributions of UK entrepreneurs, it also indicates a 1 percent decline in GDP from the previous year. This decline emphasizes the ongoing need for continued support and investment to ensure the sustained growth of entrepreneurship and the overall economy.
In conclusion, UK entrepreneurs within Shopify’s ecosystem have made significant contributions to the country’s economy, generating £28.8 billion in business activity and supporting job creation. Despite a decline in GDP, the success can be attributed to long-term investments in incentives and support structures that have fostered entrepreneurship. Continued support and investment are crucial to sustain the growth of entrepreneurship and further boost the UK economy.