Got Capital

09/05/2023

TikTok Shop is back, this time on Beta! Can it overcome past challenges and become a game-changer for UK SMEs?

Dive into our latest article to learn more about the opportunities and hurdles facing TikTok's renewed social commerce venture: https://insights.gotcapital.co.uk/tiktok-shop-social-commerce-comeback/

TikTok renews attempt at social commerce with the TikTok Shop on Beta in the UK. Can it now offer new opportunities for SMEs?

20/04/2023

In March, company bankruptcies hit record high levels in England & Wales, since The Insolvency Service started producing monthly records three years ago.

Corporate insolvencies spiked last month, with 2,457 businesses going to the wall.

These figures represent a 16% increase, compared to March 2022. Moreover, when compared to March 2019 (pre-pandemic), company insolvencies have surged by a staggering 55%.

Continue reading:

Company insolvency spikes for businesses in England and Wales, with 2,457 businesses going bust in March 2023, highlighting the need for...

30/03/2023

Amid a grueling cost of living crisis and high inflation, January 2023 presented economic commentators with reason to be positive, as inflation levels dropped to 10.1% in the UK.

This marked the third successive month of price inflation falling; a trend that all were hoping would continue for many more months.

However, the Office for National Statistics (ONS) reported a rise in inflation for February 2023, as the Consumer Price Index (CPI) shot up to 10.4%.

The figures indicate further tumultuous times ahead for businesses and consumers alike.

Currently food inflation is at a 45-year high, energy support for businesses has been slashed, and the Chancellor’s recent Spring Budget chronically under-delivered for SMEs.

Continue reading: https://insights.gotcapital.co.uk/unexpected-rise-in-inflation-compounds-pressure-on-british-businesses/

The Office for National Statistics (ONS) reported a rise in inflation for February 2023, as the Consumer Price Index (CPI) shot up to 10.4%.

27/03/2023

On April 1st, 2023, the Energy Bills Discount Scheme will come into effect, marking the retirement of the Energy Bill Relief Scheme.

Unfortunately for small businesses, the new scheme does not equate to new savings, as the Energy Bills Discount Scheme has been capped at £5.5bn of available support.

By comparison, the outgoing Energy Bill Relief Scheme had provided as much as £18bn to non-domestic energy consumers.

Continue reading: https://insights.gotcapital.co.uk/explained-the-energy-bills-discount-scheme/

On April 1st, 2023, the Energy Bills Discount Scheme will come into effect, marking the retirement of the Energy Bill Relief Scheme, which...

20/03/2023

"Plans to revamp UK bank capital rules risk a 25 per cent cut in lending to small businesses, threatening jobs and economic growth, a new study has warned.

The Bank of England’s Prudential Regulation Authority announced the controversial plans to overhaul the capital treatment for small business lending in December, as part of broader proposals to introduce the final package of Basel rules in the UK.

The small print of the package includes removing a favourable treatment for SME loans, known as the “SME supporting factor”, that was introduced across the EU in 2014, when the UK was still a member of the bloc, in favour of what regulators call a more “risk-based” approach.

The BoE proposals also include a quirk that makes lending backed by property to small businesses more expensive than an unsecured loan, because the capital charges on property-backed loans are so high."

https://www.ft.com/content/df202198-30b0-476c-b032-43588671ea35

Report estimates proposal to remove favourable treatment for small companies could affect quarter of loans

08/03/2023

06/03/2023

According to a Bank of England (BoE) survey, British businesses are once again expected to raise their prices, in the face of high inflation and a cost of living crisis.

However, survey results reveal that price increases are only due to rise by 5.4%, representing the slightest increase since February 2022.

Continue reading: https://insights.gotcapital.co.uk/british-businesses-plan-the-smallest-price-rises-in-a-year/

According to a Bank of England (BoE) survey, British businesses are once again expected to raise their prices, in the face of high inflation.

02/03/2023

SMEs and startups are to have access to intellectual property (IP) insurance, following CFC’s launch of policies which have been specifically designed for small businesses.

Legal proceedings – resulting from intellectual property ownership disputes and infringements – can prove costly and time consuming, with many businesses lacking the necessary resources to fight such claims in court.

Intellectual property insurance seeks to level the playing field for small businesses, equipping them with the resources and knowhow to fight potential claims.

Continue reading: https://insights.gotcapital.co.uk/intellectual-property-insurance-for-smes-and-startups/

SMEs and startups are to have access to intellectual property (IP) insurance, following the launch of policies designed for small businesses.

28/02/2023

Amid economic turmoil, high inflation, a cost of living crisis, and the most challenging business conditions for over a decade, 2022 actually saw record numbers of new company registrations in the UK.

Data from the Office of National Statistics (ONS) reveal that 784,762 businesses were registered with Companies House last year.

This represents an increase of almost 30,000 new business registrations, when compared to 2021 figures.

However, it’s not all rainbows and butterflies for the UK business landscape, as the rate of company insolvencies continue to rise, paired with an ever-growing presence of ‘Zombie Companies’.

Continue reading: https://insights.gotcapital.co.uk/company-registrations-on-the-rise-in-the-uk/

Amid the most challenging business conditions for over a decade, 2022 actually saw record numbers of new company registrations in the UK.

21/02/2023

New banking regulations are set to increase the cost of SME lending by a third, with capital requirements for banks due to rise.

Following the financial crisis in 2007-09, Basel banking regulations – an internationally agreed set of measures developed by the Basel Committee on Banking Supervision, alongside leading central banks – had been devised to strengthen oversight and risk management for financial institutions.

At the core of these regulations are requirements for banks to keep specifically mandated levels of reserve capital.

Continue reading: https://insights.gotcapital.co.uk/banking-rules-could-further-limit-small-business-lending/

New banking regulations are set to increase the cost of small business lending by a third, with capital requirements for banks due to rise.

20/02/2023

According to analysis from the Centre for Retail Research (CRR), there have been 14,874 retail job losses in the UK since January 2023, as the realities of the economic environment continue to bite businesses.

Large retail chains, defined as those with 10 or more stores, account for the majority of the recent job losses.

Continue reading: https://insights.gotcapital.co.uk/uks-retail-sector-devastated-with-15000-jobs-axed-in-january/

There have been 14,874 cuts to retail sector jobs in the UK since January 2023, as the realities of the economic climate continue to bite.

13/02/2023

Median base pay is expected to rise by 5% in 2023, signalling the largest average salary increase in a decade.

According to the latest Labour Market Outlook Survey, projected pay increases for UK employees is set for a new record high, based upon the CIPD’s quarterly employment barometer.

However, expected pay increases still fall below the rate of inflation, meaning that employees will continue to feel the pinch from the cost of living crisis.

Moreover, the 5% increase to median pay only applies to the private sector, with public sector employees anticipated to receive a measly 2% uplift on their salaries.

Continue reading: https://insights.gotcapital.co.uk/median-pay-expected-to-rise-to-a-new-record-of-5/