The Impact of SMEs on the UK Economy
Report Segment: SME Contribution
Independent accommodation stock continues to be the largest sector in the market (58% independent: 42% branded hotels in 2008 – BHA Trends and Developments 2010 page 32.)
To understand how important small businesses are to the economy, it is worth reflecting on the following 2009 statistic from BERR:
Of the 1.7 million people working in hotels and restaurants, 45% are in companies with fewer than 50 employees. More surprisingly, just over 45% of the £74.5 billion turnover is also generated by these businesses.
Drilling down further one can see that micro businesses (employing less than 10 people) contribute a massive amount of employment and turnover for the sector as a whole – as the tables and figures below illustrate:
Micro businesses dominate the sector at every level. Over 80% of catering, bars, restaurants and non-hotel B&Bs are micro businesses. More than 50% of hotels are micro businesses.