Catch up on the big issues with our weekly Small Business Bites. We cut through the noise to dig out the week’s stories that really matter to the UK’s small business owners. Here’s our roundup of things you need to know:
WhatsApp privacy policy changes
Popular messaging platform WhatsApp has announced that it is changing its privacy policy to allow businesses to message its billion-plus users. It will also start sharing more data with Facebook (which acquired WhatsApp in 2014) as a result of the changes.
Here’s what WhatsApp had to say: “We will explore ways for you and businesses to communicate with each other using WhatsApp, such as through order, transaction, and appointment information, delivery and shipping notifications, product and service updates, and marketing. For example, you may receive flight status information for upcoming travel, a receipt for something you purchased, or a notification when a delivery will be made. Messages you may receive containing marketing could include an offer for something that might interest you. We do not want you to have a spammy experience; as with all of your messages, you can manage these communications, and we will honor the choices you make.
“If you are an existing user, you can choose not to have your WhatsApp account information shared with Facebook to improve your Facebook ads and products experiences. Existing users who accept our updated Terms and Privacy Policy will have an additional 30 days to make this choice by going to Settings > Account.”
Shoppers continue to spend, despite Brexit
British Bankers’ Association (BBA) has released its High Street Banking statistics, which reflect the immediate period since the UK referendum. It shows that net mortgage borrowing and consumer credit annual growth are “identical” to the figures in June at 3% and 6% respectively.
However, house purchase approval numbers were some 19% lower than in July 2015, though in the first seven months of 2016 they were some 2% higher than in the same period of 2015.
Dr Rebecca Harding, BBA chief economist, wrote: “This month’s [July] BBA High Street Banking statistics are the first set of borrowing figures gathered since the EU referendum. The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum vote.
“We are also clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth.”
“Businesses also appear to be borrowing as usual: the upward trend that characterised the first few months of this year is continuing. June’s data looks like a blip, probably caused by pre-Brexit nervousness. But it is too early to tell how the data over the next few months will reflect the result of the decision to leave the EU.”
Survey reveals SMES do not feel supported by their banks
A YouGov poll has found that more than a quarter of small businesses (26 per cent) do not feel supported by their banks.It also revealed that some SMEs are confused about the notice periods on their business overdrafts.
The poll was commissioned by P2P finance specialist Nucleus Commercial Finance, whose CEO Chirag Shah said: “Unfortunately for SMEs, banks don’t need to give them any notice at all before removing their overdrafts – but they don’t often make this clear.”
Read more on this story at Smallbusiness.co.uk.
Business and Energy Secretary praises growth in automotive sector
The Society and Motor Manufacturers and Traders (SMMT) has released its monthly figures which show that for the year to date, car production is at its highest level since 2000, with more than one million cars already built this calendar year.
Over three-quarters of the cars built in the UK this year will be exported.
According to the official Government website, the automotive sector is comprised of nearly 3,000 businesses. Together they employ around 163,000 people, support a further 330,000 jobs indirectly and contribute £14.5 billion to the UK economy.
Business and Energy Secretary Greg Clark said: “Our automotive sector continues to go from strength to strength thanks to our highly-skilled workforce and long-term investment in new technology and innovation. This government’s comprehensive industrial strategy will build on that success, ensuring that we have the right infrastructure, skills and support in place for our world-leading industries as well as support for new emerging sectors to flourish.”
In other news
- Company Check’s annual Business Census will launch this autumn, asking thousands of businesses for their views and predictions for 2017 – sign up to our newsletter below to keep informed about when it launches.
