Latest research from Simply Business, one of the UK’s largest providers of small business insurance, based on analysis of over 350,000 new business insurance policies taken out across 2021 and 2022, identified the fastest growing small business sectors.

In the midst of a cost-of-living crisis, a new set of thriving small business industries are expected to experience significant growth after a surge in 2022.

KEY FINDINGS:

• The biggest increase came in the number of project managers – with a 71% rise in 2022
• Meanwhile, a rise in gift shops (21%), DJs (18%), and dance instructors (12%) reflect wider societal trends in creativity, consumption habits, and a continuation of people looking to turn their hobbies into successful side hustles
• Project managers, DJs, dance instructors and security guards are among the small business types expected to grow fastest in 2023 – as a new wave of entrepreneurs emerge from a year dominated by the cost-of-living crisis.

The findings come on the back of a recent survey of over 600 small business owners, commissioned by Simply Business, which revealed a quarter (26%) of SME owners are worried they simply won’t be able to pay their bills in 2023. As a result, 15% have no confidence in their business heading into 2023 which has left many looking at alternative ways to obtain a source of income.

Project managers were the fastest growing trade in 2022, with a 71% increase from 2021. With the Covid-19 pandemic changing the way people view work, it would seem many are setting up on their own to take advantage of flexible working hours.

Meanwhile, several new forms of entrepreneurship emerged in 2022, with the number of property managing agents increasing by 34%, plus security guards and electrical engineers rising by 22% and 20% respectively.

And could 2023 be the year where creativity flourishes as people turn their passions into business opportunities? There was an 18% rise in the number of DJs taking out policies in 2022, with gift shop owners (21%) and dance instructors (12%) also featuring in the top ten fastest growing small business sectors.

The number of cafe owners surged by 31% in 2022, while the number of food stalls (9%) also grew, building on the increased popularity of outdoor leisure, food stalls and outdoor dining, accelerated by Covid-19.

Alan Thomas, UK CEO at Simply Business, commented: “Small Businesses and the self-employed are vital to the UK economy, accounting for 99% of all British businesses – with most being impacted by the cost of living crisis.”

“Thankfully small business owners have shown resilience, innovation and creativity at every stage since the start of the pandemic in 2020. And as a wave of challenges persist – it’s incredibly encouraging to see this uplift in UK entrepreneurs leading the way when it comes to our recovery.”

“Put simply, our economy and communities need small businesses to bounce back, so it’s heartening to see a new wave of entrepreneurs seizing the opportunity to start up.”