According to a new rating by Shopify of the effect of entrepreneur on their country’s total economy, the UK ranks second among the G7 economies and fourth overall.
The results were published for the first time in the Shopify Entrepreneurship Index, an analysis that offers information and rankings for 40 nations worldwide. It was carried out in collaboration with Deloitte utilizing data from Shopify ecosystem entrepreneurs and augmented with information from the World Bank, OECD, and the International Monetary Fund.
According to the index, business owners in the UK increased exported goods by 8% in the previous year to a worth over £3.2 billion, supporting nearly 200,000 employment here, will produce £28.8 billion in business activity in 2022, and will have an impact on the economy of £14.3 billion.
The index’s study also reveals that small and medium-sized businesses (SMEs) in the UK have defied trends in other economic sectors. In terms of economic effect and entrepreneurship, the UK now holds the fourth and second positions in the G7 economies.
In terms of export growth, UK companies were second only to those in the USA. This comes after statistics from Shopify was made public, which revealed that from Black Friday through Cyber Monday of 2022, retailers in London acquired the most products globally, with one in four (24%) of UK retailers’ sales taking place outside of the country. This is odd because holidays like this are not typically observed in the UK, however it demonstrates the determination of UK businesspeople to seize every chance that comes their way.
Additional data indicates that advancements in digital technology and infrastructure have additionally aided regional economies throughout the UK in leveling up, in addition to the steady increase of sales and exports in London.
The location is not anymore a barrier to growth as 60% of entrepreneurs are now headquartered outside of large cities and metropolitan areas.
The UK’s prosperity may also be partly ascribed to encouragement and assistance systems for the country’s entrepreneurs. Some UK businesses have been able to attract and keep talent thanks to programs like the Start Up Funding program of the British Commercial Banks and the recent increase of investment reliefs by the UK Government. Investment in British exporting assistance, such as that provided by the Export Academy, has additionally enabled UK companies to explore foreign markets.
Despite the positive assessment, there was a 1% decrease from the same time frame the previous year in the influence of regional entrepreneurs on the UK’s gross domestic product (GDP), which is frequently used by a government to gauge the health of its economy.
Therefore, if the UK authority continues to disregard and dismiss UK entrepreneurship, there is a risk that the UK could lag behind other countries in our G7 position (i.e., our standing as one of the world’s most advanced economies).
This was made clear by the Spring Budget for 2023’s disregard for SMEs.
Reassessing the advantages for UK SMEs to go digital is thought to be necessary for the UK to stay competitive in order to lessen this.
The government’s Electronic Trade Documents Bill, in particular, might help UK SMEs reduce barriers to exporting to the rest of the world by digitizing UK exports.
Despite the difficult economic scenario we’re in, Deann Evans, Director of EMEA Expansion, says it’s excellent to see the UK standing fourth overall. To sustain the UK’s position as a leader among the G7 economies, however, provisions must be made as other countries strengthen their support ecosystems.
Evans stated, “From the Shopify ecosystem, the Shopify Entrepreneurship Index will act as a barometer on the condition of global entrepreneurship. “Providing lawmakers with the information they need to inform their choices on how to best support entrepreneurial growth.”
Evans also contributed her ecommerce industry knowledge to the 2023 Ventures 100 ecommerce awards judging panel. Applications for the 2024 index are now being accepted, and this is a great chance for you to introduce and promote your company to new audiences.