Catch up on the big issues with our weekly Small Business Bites. We cut through the noise to dig out the week’s stories which really matter to small business owners. The week’s been full of tech company takeovers, small business report releases and yes, of course, more political wrangling and Brexit discussions!
Monday
The big news of the day was the announcement that ARM Holdings, the biggest UK tech company you’d never heard of, was being sold to Japanese giant Softbank for a huge £24bn. It’s either a blow for British manufacturing or a vote of confidence for all those small business and startups looking to emulate ARM’s undoubted success – opinion was split down the middle from politicians and business press. Tech startups will no doubt be buoyed.
Softbank has promised to double the workforce at the 3,000-strong Cambridge headquarters as it looks to use ARMs sophisticated microchip technology expertise to capitalise on the growing market for the ‘Internet of Things’.
Tuesday
If you’re running your own business in the Capital but struggling to afford to live there, you’re not alone. That’s according to the Federation of Small Businesses (FSB), who released a report showing that London’s housing crisis has left to at least a quarter of small businesses either moving or considering leaving the city. The FSB’s 50,000 homes survey found that almost half (47%) of its members who were asked said they’d taken or considered taking action to help employees with living costs (see full report here). Do you work in London? Share your experiences by joining our community.
Still no escaping referendum news completely either – The Guardian also reported that ‘Brexit could revive small business manufacturing‘.
“The government has facilitated startup loans and seed funds are available – but for businesses to grow from SMEs to large businesses, there needs to be a clear plan. What we don’t need is a sudden and surprising cut to corporation tax when our rate is already globally competitive.”
Heidy Rehman, founder, Rose & Willard
Wednesday
No industry is safe from the march of the ‘millennials’ and their demand for digital disruption, it seems. Next to be hit, or transformed depending on your point of view, is small business insurance, at least that’s according to Morgan Stanley’s latest research to be reported by The Huffington Post. It forecast that 60% of US businesses will be owned by millennials or ‘Gen-Y’ by 2020, and the insurance industry is belatedly changing to suit this small business shift.
Thursday
In political news, Theresa May met President Hollande in Paris, who urged the UK to get on with Brexit talks as soon as possible. ITV reported that Paris is looking to ‘snap up’ financial trade from London if ‘new tariffs and red tape’ come about from a final deal. Small businesses who deal with London’s financial sector will be watching closely to see how negotiations pan out; either rejoicing or booking their Eurostar tickets.
Friday
Finally, Brexit has reportedly led to economic activity falling to a seven-year low in the UK economy. Markit’s Purchasing Manager’s Index (PMI), fell to 47.7 this month, lower than any time since April 2009. Any result below 50 suggests the economy is contracting.
On the same day, it was announced that the new Chancellor Phillip Hammond may ‘reset’ the UK’s economic policy when he delivers the Autumn Statement in November. With George Osborne’s previous pledge to eliminate the country’s budget deficit by 2020 already scrapped post-Brexit, this news could see changes made to the Government’s support for small business. Whether any changes are as dramatic as the PM’s recent reshuffle remains to be seen.
In other news
Dragon’s Den returns to our TV screens this Sunday as Peter, Deborah and co look for the next promising entrepreneurs to make them part with their cash. Who that might be became a little clearer this week after our research showed that food and drink businesses were more likely to secure backing in the Den than any other industry. Almost a fifth (17%) of all deals done during the last 14 series of the show went to startups in these areas, far above any other. There’s also been a distinct lack of funding given to tech or mobile app businesses. Read the research and analysis by companies who were successful in the Den in detail here.
