Business Finance News From United Kapital

UK's Businesses Benefitting From The Recession

Wednesday 5th of October 2011

High growth businesses make up around 7% of the UK's companies and make up a large proportion of jobs, having an annual employment growth of more than 20%. These kinds of businesses, say the experts, are the ones that have been particularly resilient during the recession and may have even benefitted from the economic downturn.

According to the statistics many of these businesses are based in urban surroundings such as cities like London, Liverpool and Birmingham and the main industries they are involved in include computing, hotel, retail, construction and manufacturing. Some areas of these industries are still booming despite the effects of the recession on the UK economy and businesses.

It is these kinds of businesses that have kept employment going throughout the recession. With many news networks reporting on a slump in employment numbers and growing numbers of people on benefits, it is not all doom and gloom.

In fact there are many other businesses that have continued to profit and even benefitted from the recession as well.

The first business that has seen a rise in sales since the recession is discount retailers such as pound stores. It makes sense that as budgets and household expenditure are cut; people look for cheaper ways to source their weekly shop. Pound stores have profited as they have used their initiative to offer higher quality goods so that the emphasis is both on quality and low price products, not just cheap goods. This gives them an all round appeal.

Another business benefiting from the recession is standard "evergreen" businesses. These include things like funeral parlours, solicitors, pharmacies or waste disposal companies. Because these services are always required no matter what the economy is doing, i.e. people continue to die, they continue to need their waste disposed of, and they continue to need drugs, they are able to continue business as usual without too much impact from the UK economy.

A third business sector which has benefitted from the recession is the more "sinful" areas such as gambling websites, cigarette makers, or wine distributers. As life gets tougher, these smaller, short term pleasures and the chance to win money to improve peoples' situations experience increased demand. More people will choose to smoke when times are tough, just as more people choose to drink or have a bet on a horse. This may seem counter-intuitive, but these sectors operate as businesses too which means that they need to make money just like any other industry.

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