Number of SMEs in the construction sector breaks the one million mark

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The number of small businesses operating in the construction sector across the UK has increased by 32,000 in the last year, meaning there are now over one million, according to analysis of Government data by cloud accounting software provider, Clear Books

The latest set of Government business population estimates show that the number of construction companies with less than 50 employees has increased to over 1,005,290, up from 972,475 in 2016. The data also indicates that these same small businesses are responsible for turning over around £185bn a year, up from £172bn in 2016. The total turnover of all businesses operating in the construction sector reached £296.8bn in 2017, up from £271.9bn in 2016.

Commenting on the company’s analysis, Clear Books CEO Phil Sayers says:

“There are around 5.5 million small businesses in the UK and the fact that construction firms account for one million of them is indicative of how essential it is for policymakers to ensure small construction firms continue to thrive. Be it a family-run construction business or high-growth housebuilder, small businesses play a huge role in society, acting as vital job creators but also contributing a significant amount to overall economic activity. Their role as essential service providers and genuine hubs in local communities and further afield is hugely valuable. Policymakers must ensure that small businesses are supported – their success and survival, in equal measure, is absolutely essential.”

The analysis is based on the latest set of Government business population estimates for the UK, published on 30 November 2017. Business population estimates for the UK and regions provides the only official estimate of the total number of private sector businesses in the UK at the start of each year.

Clear Books recently launched Clear Books Micro – free software that allows business owners to keep their books within a cloud-based spreadsheet. In addition, accountants are able to submit a company’s VAT and MTD returns to HMRC directly through the platform, complying with the government’s ‘Making Tax Digital’ legislation.

As data is stored securely in the cloud, business owners and their accountants are able to access their books anytime, anywhere. Accountants are also able to instantly raise questions and flag issues as they appear, rather than waiting until year-end.

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