Future Facts Of UK Businesses: Thriving Yet More Challenges To Conquer!

  • Home / Business / Future Facts Of…
future facts Of UK businesses

Future Facts Of UK Businesses: Thriving Yet More Challenges To Conquer!

With a hunch and doubt, the UK is one of the global business hubs every entrepreneur dreams to start a business over there. It is the 7th best country to kick start business and the abode of the world’s best financial city, LONDON lets get to know more about future facts Of UK businesses. Though, COVID-19 and Brexit squeezed and rewritten the UK economy profoundly in the last two years.

So, if you are keenly interested to find out how UK business will thrive back via new trading rapport with the EU and how businesses from diverse sectors employ strategic foresight to fight back, consider reading the blog further down.

UK Businesses to Acquire New & Divergent Ways to Survive

With the upheavals in public health, mere shrink in GDP (nearly 15%), straining relationships with UK neighbors, and mayhem in UK politics directly or indirectly impacted SMEs in the UK market one of the future facts Of UK businesses. The way UK’s economic backbone has been rampaged due to COVID-19; nothing had been done since the Great Frost of 1709. But, businesses need to survive. Thus, businesses tend to attain new and divergent ways to survive, such as,

  • Adopting e-commerce solutions
  • Accelerating the process of digitalization
  • The shift from office work to remote working
  • Getting adapted to the new EU trading regulations

No one knows how long the strategies would work, but every business dramatically focuses on strategic foresight to hone agility and surpass the UK economic turmoil after COVID-19 and Brexit.

Case Study 1

“See the movements and acceleration of internet sales on the contrary of the retail property market in the past decade. The average income has seen no dramatic volatility while the vacancy rate has been relatively low till the beginning of 2020 when the COVID-19 pandemic started and the online sales significantly increased.”

future facts Of UK businesses
UK Retail Property Market vs Online sales, 2010 to 2020.
Source: CoStar and ONS.”

Adoption of Technology! Is It the Same for Every UK Business!

Every business has to face challenges after the uncouth COVID-19 wave. It was not easy to cope with the challenges the post-COVID situation imposed on businesses. Adoption board spectrum technology including videoconferencing, digitalized way of customer interaction, venturing into cyber-security, and/or switching to cloud-based applications are not the same for all businesses regardless of sectors or sizes. Thus, while several firms have been racing ahead,   others remained behind due to the inability of spending or adopt advanced technology.

Case study 2

For the first time, the November survey also asked businesses how they expect Covid to affect them over 2022 and beyond. Both sales and employment were expected to largely recover by then, with the impact on sales expected to be +0.25%, and on employment -0.5%. The investment was expected to be 3% lower by 2022 and beyond. This is in contrast to the DMP survey responses concerning the UK’s decision to leave the EU, where businesses continued to expect a larger reduction in sales over the long term even if a trade agreement is reached.

Businesses reported that the various measures (social distancing, hand washing, masks, and other measures) to control the spread of Covid were expected to increase the cost of running a business over the next year. In November, businesses reported that their average unit costs were around 7% higher in 2020 Q4 due to Covid and that they expected this impact to persist into next year (Chart 1). By 2021 Q2, costs were expected to still be 5% higher than they would otherwise have been, and they were expected to still be around 2% higher in 2022 and beyond.

In the November survey, businesses in recreational services, accommodation and food, and transport and storage reported the largest expected declines in sales in 2020 Q4, of 49%, 29%, and 27% respectively. Businesses in these industries also reported the largest reductions in their capacity to produce goods and services as a consequence of measures to contain Covid.

Data from the November DMP survey

New Trading Relationship between UK & EU thru Challenges & Opportunities 

Not in all ways Brexit has impacted the UK economy badly. When there are challenges for a few UK businesses, opportunities also are subject to consideration on the other side. The impact of the new trading rapport between the UK and EU is certainly industry specific. While businesses need to export products from the EU, face a sudden rise in cost and customs duty; businesses who are doing exports of the same products can cater to the UK market demand and earn higher than before.

Incorporating Strategies for Better Business & Agility in Performance

Businesses cannot be expected to go well if there is no change in strategic moves and rigid approaches. The post-pandemic economic situation made businesses understand the importance of revamping business strategies to lead in the competitive UK market. Crucial strategic changes like pivotal moves, granularity, and agile options in transformations should be adopted and implemented by businesses to respond to the immediate market dynamics is one of the future facts Of UK businesses.

Putting It Altogether,

With no fallacy, it can be considered that the UK market is about to face a new era of business post-pandemic and Brexit. Businesses that are ready to adopt sector-specific strategies and abilities can cope well and experience growth undoubtedly.

The rules are inevitable for businesses that are housed in London, the financial hub of the UK. Adopting agility to the business frame is a smart move. But, you cannot ignore the power of digitalization that most of the businesses in the UK tend to adopt after pandemic blues. Here comes SK Web World UK, one of the best PPC services in London. We can make your business thriving and enticing to consumers with quantitative results.

Contact us and earn the benefits of sponsored ads runners and let your business get the storms of eyes on digital platforms. We bet you would reach out to your targeted audiences at a pace and see your business grow in multi-folds. Call us now!

Write a Comment

Your email address will not be published.