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Hospitality and Tourism

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.

comparemicros