AI could contribute up to £400bn to the UK economy by the end of the decade, according to a report released by Google.

The report noted that artificial intelligence could turbocharge productivity, which has been sluggish for many years. It also noted it could unlock new ways of working and help jobseekers get back to work.

Between 1974 and 2008, the UK’s productivity grew at an average rate of 2.3% a year, a much higher rate than the 0.5% growth between 2008 and 2020, according to National Institution of Economic and Social Research figures.

The economic boost brought by AI could be equivalent to an annual growth of 2.6%, creating £200bn in extra revenue for public services. This could overcome recent growth stagnation and improve macroeconomic conditions.

Whilst the news sounds positive, the implications for SMEs are not clearcut.

Where are our AI startups?

According to data from the Department of Science, Innovation and Technology (DSIT), 88% of the AI business population in the UK is made up of small (10-49 employees) or micro (1-9 employees) businesses.

However, despite representing a sizable majority of the AI business population, small and micro entities only make up 28% of AI’s economic contribution – 71% is generated by large firms.

This suggests funding and trust is skewed towards big established businesses that embody less investing risk.

“If AI is projected to bring billions to the UK economy, then why on earth aren’t our startups and SMEs getting the funding they need to take their business to the next level?,” questions Steven Mooney, CEO of FundMyPitch. “Time and time again reports show that UK entrepreneurs struggle to secure access to credible funding or even an independent valuation, in stark contrast to other markets.”

As a result, British startups with state-of-the-art AI products are having to look elsewhere for funding. Some have been bought out by US tech giants like Google or Microsoft, including Autonomy, DeepMind, and SwiftKey.

“A failure to get ahead of the game on AI will have disastrous consequences for the economy, so giving full financial backing to up-and-coming companies that are pioneering developments in this technology should be a top priority,” adds Mooney.

Making AI work for everyone

According to Salesforce research, only one in ten global workers have in-demand artificial intelligence skills. As AI continues to grow, employers need to think about upskilling their workforce.

“This shift is the most profound platform shift that any of us have lived through,” emphasises Debbie Weinstein, Google’s UK and Ireland Managing Director. “We are very conscious of the impact that this technology will have on people. Clearly there will be some jobs that will be lost, but also a whole new set of jobs that will be created.”

According to a Virgin Media study, data suggests that 21% of respondents said they needed digital skills to get a job with a higher salary and 31% believed they had been passed over for a promotion because of a lack of digital skills.

Paramjit Uppal, founder of AND Digital, says, “UK organisations are still failing to sufficiently upskill employees, and it is directly impacting business and wider economic growth.”

Democratising the growth of AI requires very conscious choices. Whilst AI can definitely boost productivity, it is paramount to spread out the gains by upskilling so that companies of all sizes can be part of the UK’s economic growth.

Chris Forbes, co-founder of Startups 100 regular Cheeky Panda, has been announced as guest judge for next year’s Startups 100 Index.

The eco-friendly entrepreneur is the first guest judge to be announced for this year’s list, which reopened for entries in April. In collaboration with the Startups’ panel of experts, Forbes will help to identify the winner of the Sustainability award from the list of the top 100.

The chosen company will be a UK startup which demonstrates outstanding evidence of prioritising the health of the planet as part of its mission statement.

Speaking to Startups about the announcement, and wearing his signature panda hat, Forbes tells us: “The Startups 100 has a history of finding those who have gone on to become big businesses. It’s great to now be a judge and to be able to participate from the other side.”

Who is Chris Forbes?

Cheeky Panda began as a two-man startup in 2016. It immediately impressed our judges with its innovative range of ultra-sustainable, low carbon, and healthy bamboo products.

We first featured the cheeky brand on the Startups 100 Index way back in 2017. Since then, having been listed in the index three more times, it was valued at a huge £75m in 2022.

Forbes and his co-founder/wife, Julia Chen, have grown the brand together over seven years from seed to shooting success.

“We’ve sold over 50 million units globally”, he says humbly, “and sales continue to grow by 70% year-on-year despite supply chain crisis and major inflation. And of course, we were certified as a B corporation.”

Now available in over 10,000 stores in the UK, the brand has entered what Forbes describes as ‘scale-up’ territory. The company has moved into international markets this year and has also hired an executive management team, readying for its next phase of growth.

It’s this success and experience that Forbes will bring to the judging table later this year to judge the Startups 100 sustainability category.

Green companies can often struggle to find the balance between purpose and profit – but Cheeky Panda is proof that one does not have to come at the expense of the other.

“The business model has to be sustainable as well,” he cautions. “The key to our success has been having good products, a good narrative around who we are, and having the right funding in place as well.”

Being sustainable in 2023: what does it mean?

Sustainability has been on every brand’s lips for the past decade, as more businesses join the fight against the climate crisis. Momentum has continued even throughout the cost of living crisis, with consumers seeking out “kind” firms even in the face of hiked prices.

Excitingly, Cheeky Panda announced a new partnership earlier this year. Joining paws with fellow panda-brand WWF, the business will donate a percentage of the sale on specific products to support the charity’s work to conserve endangered species.

“For consumers, it’s not just about what’s cheapest,” says Forbes. “People want to know what’s a good product, what’s good for me, and what’s good for the planet?”

Alongside this popularity, however, has burned another hot topic: greenwashing, or the act of making misleading claims about sustainability credentials.

2023 has so far been the year of greenwashing scandals, with companies like Ryanair and Unilever both facing scrutiny over unclear environmental claims. Terms like ‘plastic-free’ or ‘carbon neutral’, popular in many big brand marketing materials, have turned out to be false.

As awareness of the practice has heightened, consumer trust in the brands being praised for their sustainability has lowered. It’s a problem Forbes is hoping to fix when judging this year’s shortlist.

Forbes points to an awards ceremony he recently attended as an example, where a well-known aviation company was named one of the most sustainable companies. Forbes was incredulous.

“It was like, ‘how the heck did that happen’?” he recalls. “I think the judges on that award should not be judges.

“Seven years’ experience in a high-profile sustainable scale-up means I’ll spot the difference between people doing something because it’s the right thing to do, and those who are jumping on a bandwagon because they think they can sell purpose as a business person.”

Could you be the next Startups 100 sustainable champion?

Cheeky Panda has won over 30 business trophies in its seven year lifespan. Forbes himself won Entrepreneur for Good at last year’s Great British Entrepreneur Awards.

Startups asks: from his own experiences applying to business indexes and awards, what will he be looking for from this year’s entrants for green hero? Forbes has one word: data.

“The red flag that you look for when I see a green business is no data,” he states. “It’s very easy to create a story, but I actually want to understand what your impact is. If you’re saving carbon, plastic, or energy, how are you tracking and measuring that?”

Hanging proudly on the Cheeky Panda fridge are its own impressive statistics: Forbes reveals the firm has so far saved over 400,000 trees by people using its bamboo products. It has also reduced carbon by 32,000 tons from the tissue and hygiene category.

Alongside internal reporting, Forbes is also interested in external accreditation. For example, B Corp certification. For inspiration, he points to fellow Startups 100 alumni, Neat Home Ltd. as a company that’s doing it well.

The company makes plastic-free, replenishable cleaning products that are vegan and cruelty free. In two years, Neat estimates its refills have saved over 40 tonnes of plastic.

“When we started Cheeky Panda, sustainability wasn’t so high on the agenda,” Forbes comments. “Today, it seems to be something that everybody’s focused on. As a guest judge, I plan to dig into the weeds to spot anything that’s green-washy and find the brands that are truly exceptional.”

Are you an eco-friendly entrepreneur with a blossoming business? Apply to the Startups 100 for a chance to be named the top sustainable UK startup for 2024.

Average funding for AI startups has increased by 66% between 2021 and 2023, according to data from the Startups 100 Index.

In 2021, average funding for AI startups was £5,340,750. Despite the challenges presented by post-pandemic recovery and high inflation, funding rose to an average of £8,587,727 in 2023.

Startups 100 Index data also found that turnover revenue for AI startups rose by 77%, representing a huge increase from £1,222,512 in 2021 to £5,040,280 in 2023.

Now in its sixteenth year, the Startups 100 Index is the UK’s longest running ranking of the most innovative and disruptive startups in the market. Reflective of the startups landscape, the Startups 100 Index has seen the number of new AI enterprises ranking increase by 45% over the last two years.

As artificial intelligence becomes increasingly normalised, the data indicates startups are taking an active role in innovating the technology.

When compared to other sectors represented in the Startups 100 Index, AI has the second highest average funding. AI trails behind the tech sector, which in 2023 received an average funding of £10,643,376.71.

Nevertheless, the AI sector has grown at a faster rate than the tech sector. In the past two years of Startups 100 data, average funding in the tech sector only grew by 36.42%.

Competing for resources against the big guy

While the numbers spell good news for the future growth of AI startups, when compared against larger AI enterprises, the central role of startups in the AI revolution is not as clearcut.

According to data from the Department of Science, Innovation and Technology (DSIT), 88% of the AI business population in the UK is made up of small (10-49 employees) or micro (1-9 employees) businesses.

However, despite representing a sizable majority of the AI business population, small and micro entities only make up 28% of AI’s economic contribution. On the other hand, 71% is generated by large firms.

These stats alongside Startups 100 data suggest that while investors are placing more trust and money in AI startups, there is still a noticeable preference for larger and more established companies overall.

To understand this discrepancy, Startups spoke to Sprout.ai, an AI insurance claim company and a 2023 Startups 100 Index alumni.

“I don’t think that specifically AI is suffering from any funding problem,” says Roi Amir, CEO of Sprout.ai. “People want to invest in it and want to fund it but the challenge we have in the industry today across the board is there is generally less funding.”

“There are VCs and they have funds to deploy but the lack of stability and predictability makes them much more cautious and much more conservative,” explains Amir. “What we see is that the investment community in general becomes much more conservative, looking for measurable outcomes, and market proof points before investing.”

However, just like in politics, conservatism is not permanent. According to Amir, what the market is currently experiencing is a pendulum effect, going from high levels of investing before the pandemic to the more extreme conservatism of today. Eventually, it’s expected the market will correct itself and swing back to a balance where businesses find it easier to raise funds.

However, for Rafie Faruq, CEO of Genieai.co, an AI legal assistant and 2023 Startups 100 Index alumni, it’s not just a matter of the macroeconomic climate.

“I think a major issue is access to data,” explains Faruq. “Big businesses have strict data privacy requirements so if a startup is selling to a big business, they need to have information security systems like ISO 27001 or SOC 2, and that is difficult to obtain.”

Sales cycles also pose a challenge for startups. “To sell to big businesses is a year,” Faruq continues. “You have to go through information security, compliance, legal and a whole lot. And that’s why big businesses do better because they can just survive the painful sales cycles.”

However, despite the challenges posed by the macroeconomic climate and data access hurdles, Faruq confesses that VCs are still open to investing in startups.

Drawing the lines of AI policy

Besides funding, policy and regulation could have a big impact on how startups influence the future of AI technology.

The government presented its AI whitepaper back in April, which promised to avoid heavy-handed legislation. However, the UK is enmeshed in a policy race as it works to become a leading voice in the international AI conversation.

As the UK drafts regulations, SME experts say it’s crucial to democratise AI so that startups and small businesses can play a key role in developing the technology.

“We need to keep this space accessible, not a technobabble filled arena that only high-tech giants or corporate innovation teams can use,” emphasises National Chair for the Federation of Small Businesses (FSB) Martin McTague. “The small business community should be competitors, not spectators in the digital race.”

The AI industry contributed £3.7bn to the UK economy in 2022, and currently, over 50,000 people worldwide work in the AI industry. Any statutory regulations set in place by the government will be heavily consequential.

When talking to Startups, Faruq had just returned from an All-Party Parliamentary Group meeting. “There were, I think, no startups there and pretty much no machine learning engineers or academics. It was all policymakers and political scientists which was a bit worrying to me,” confesses Faruq.
“I think you need to hear the voice of people who are on the cutting edge of creating new products, new services, and then you need that pool to be diverse in terms of socio-economic background, gender diversity and every other form.”

Also key is access to funding. As Faruq points out, the existing grant programme for startups is bound by red tape.

SproutAI CEO Amir also notes the importance of revising regulations that exist around investments made by pension funds. “One of the challenges in the UK is that pension funds are not involved so much in supporting the tech ecosystem, so they’re not investing a lot in VC or in a private equity firm to support growth of companies,” he explains.

“If you look at it, compared to the £4 trillion that are in the pension funds, they’re investing less than £200 billion per year in growth, and the reason they’re doing that is that there is a lot of regulation and risk mitigation factors that force them to invest in very traditional and very secure assets.”

Therefore, Startups 100 data suggests that AI startups are performing a balancing act on two separate tightropes – the macroeconomic climate and the future regulations. The former is often largely unpredictable and cannot be controlled by one single actor. The latter, however, is up to the government and policy makers.

Giving startups a seat at the policymaking table will be key in transforming the UK into an AI powerhouse.

** Startups 100 data collected historical data from the 2021-2023 Startups 100 Index, representing a sample size of 200 startups in the UK.

The rivalry between giant tech personalities Elon Musk and Mark Zuckerberg has entered its most recent heated episode with the launch of Threads. For small businesses and startups with existing Twitter accounts, the same conversation will be playing out worldwide – open a Threads account and go all-in, or wait and see if it’s worth their time?

Plenty clearly haven’t waited around. Meta’s new text-based social media app gained 10 million users in its first seven hours. What Zuckerberg describes as a ‘friendly’ competitor to Twitter might not be so benevolent a rival.

Threads certainly has convenience going in its favour, as users can sign up in a few taps directly from their existing Instagram accounts.

Whether or not Threads will reign supreme – especially after Musk threatened to sue Meta over misappropriation of Twitter’s trade secrets and intellectual property – remains unclear.

Nevertheless, SMEs find themselves at a critical juncture. Sitting and waiting to jump onboard the new Meta social media app could cost them valuable brand building exposure and potential customers.

Is Threads the next big marketing opportunity for SMEs?

48% of SMEs who use social media as part of their marketing plan say it is essential to maintaining their business. Of those, 81% said they used Facebook, 67% Instagram, 57% Twitter, and 38% TikTok.

The stats support Zuckerberg’s ambitions for Threads. SMEs have a preference for Meta-branded social media, and considering how easy it is to migrate to Threads from Instagram, convenience will be a big factor for Threads’s early growth.

SMEs currently building their brands on Twitter might stray away from it, because of the volatility that Musk has brought to the platform.

Just last Saturday, Twitter began restricting how many tweets its users could read, narrowing it down to 1,000 tweets for unverified users. The move baffled advertising executives as it was a clear push for users to pay for Twitter verification status.

Wes Wilkes, CEO at Net-Worth NTWRK describes the launch of Threads as “another blow to the ever-decaying carcass of Twitter.”

“The Threads move from Meta may be the tipping point that illustrates the purchase of Twitter as the worst buy in history, as it is set to become a $44 billion echo chamber for Elon Musk,” explains the marketing specialist.

Musk’s leadership has become a divisive issue among users – the CEO only enjoys a 34% approval rating. Volatile decisions about how the platform is run makes it tough for advertisers to plan out their marketing campaigns in the medium and short term. Most importantly, it limits the reach emerging brands can have with their target audience.

Threads has emerged at an opportune moment, and has a respectable chance of becoming a new marketing platform thanks to a sizeable potential user base.

“Given its fast adoption and high-level integration with Instagram, Threads have reduced the barrier to entry and enabled brands to both replicate a pre-built profile and to some extent, follower base,” explains Joseph Black, Co-Founder of UniTaskr.

The frictionless launch of a Threads account and the dissatisfaction with Twitter, therefore, could mean Meta’s new app stands a chance to knit the next big social media platform.

Stitching together a marketing strategy on Threads

The main question to answer is whether Threads can capitalise on a deflated Twitter. The tweeting app might be volatile ground for advertisers, but brands won’t migrate to another platform that’s a no-man’s-land for marketing or customer engagement.

Instagram is predominantly used by brands for paid ad campaigns, working with influencers, and sharing highly polished posts and short videos. Threads could offer a way for brands to directly engage with customers in back-and-forth discussion.

“Whilst it’s too early to tell just how powerful Threads will become as a marketing channel, I’d home in on building a community or foundation on the platform in the interim and use this time to test new approaches,” reveals Black. “Adaptability towards this platform will be key.”

As they begin feeling their way on the new platform, SMEs can capitalise on users trying out Threads for the first time by raising brand awareness and repurposing existing content in fresh, Threads-like packaging.

Diversifying social media channels is key

Even if Twitter is challenged by Threads, there could be a good reason to keep a foot in both social media platforms. Just because a social media platform isn’t speeding ahead of the rest doesn’t mean opportunities won’t surface in future.

Every social media has its own identity. Whereas Twitter is all about the 24/7 news cycle and text-based banter, TikTok is about short, punchy, home-made videos that cut straight to the chase.

Each has their own value and inspires different techniques on reaching different demographics and target audiences. Therefore, when trying to approach Threads, brands should think about using new strategies and content to catch users’ attention and diversifying their marketing across various platforms.

Black believes Twitter is still a viable marketing option: “Twitter has a large user base and provides opportunities for businesses to engage with their audience in what was previously a fairly unique way,” he says. “Look at this as an opportunity to repurpose Twitter content for Threads in order to foster a new community.”

While Threads might be an alluring platform for many users, it would be wrong to assume that all of Twitter’s user base will automatically flock to Threads. Many will continue to use it for some time, and as long as Twitter has a sizeable population, it can still be a viable platform for brand building and marketing.

One third of company employees are considering doing part-time work alongside their main job, representing astonishing year-on-year growth in the UK’s freelancer economy.

The findings come from Aspire, a recruitment agency which conducts a quarterly survey of 900 workers to measure sentiment within the UK jobs market.

Last month, the Bank of England hiked interest rates to 5% – the thirteenth month in a row that rates have been raised – signalling the continuation of the cost of living crisis. Aspire found that 33.6% of workers plan to lean on their skills and knowledge to boost earnings.

The growth in candidates seeking freelance roles has tripled compared to the same period in 2022. Then, just one in ten (9.5%) candidates were considering freelancing or contracting as their next career move.

Unstable economy triggers employment anxieties

The Aspire survey shows that the number of candidates interested in this way of working has increased dramatically over the last 12 months, suggesting it is primarily being driven by the cost of living crisis.

Interest in becoming a freelancer grew from 9.5% to 31.3% by October last year, and sat at 33.6% by April this year.

For freelance workers – otherwise known as ‘multi-income individuals’ – starting a side hustle offers an opportunity to offset the impact of inflation, which has seen real wages fall at amongst the fastest rates in over 20 years.

Some workers reported feelings of low job security in the first quarter of 2023, due to mass layoffs across multiple sectors including retail and tech.

More than a third of UK workers have already admitted to lining up a ‘Plan B’ job in the face of mounting uncertainty about secure employment.

Freelancer boom reflects growing demand for flexible working

Freelancing offers individuals the opportunity to earn additional cash around their full-time work. Its growth in popularity can therefore be linked to the advent of remote and hybrid work that has brought greater work-life balance to many company employees.

The freelancing ‘be your own boss’ mentality means people can choose when and where they work for full flexibility over their work arrangements. Office for National Statistics (ONS) data shows that most UK sole traders have ditched the office in favour of working from home.

This makes it of particular interest to younger workers, the group which shows the biggest preference for improved work-life balance.

This entrepreneurial attitude is good news for the UK economy in the short and long term, giving workers additional income now and a potentially viable and successful business in the future.

Terry Payne, Global Managing Director at Aspire, said: “Candidates turning to side hustles are finding ways to explore how their passions and personal interests can provide additional income, either to manage rising costs now or – excitingly – as the beginnings of a successful business in its own right.”

Nonetheless, employers should take note of the potential toll that a second job could have on employee health and wellbeing – particularly if it is being triggered by financial stress.

If a large number of staff members are turning to freelancing due to money troubles, this should provide impetus for business owners to reexamine their employee benefits and perks package to review how well it is supporting workers.

How to become a freelancer

Research by Yell shows that freelancing is the second most popular side hustle in the UK. Becoming a freelance copywriter or graphic designer are two of the most common avenues chosen by ambitious employees.

Freelancing can be rewarding but it can also be precarious. Half of contractors say they have considered quitting due to late payments from clients. Plus, unlike full-time employment, freelance work does not guarantee a steady stream of income each month.

Most people choose to freelance as a sole trader. One of the biggest advantages to sole trading is the lack of red tape. Typically, this structure means less paperwork and more privacy than limited companies (although you’ll still need to complete an annual tax return).

Regardless of business structure, you must register with HMRC by the deadline of 5 October after the end of your first tax year. There are other things to consider, such as setting your pricing structure, filling out self-assessment taxes, and sending invoices.

Need a good freelance business idea? Check out the top cheap small business ideas for an easy way to earn some extra pocket money this year.

NatWest has announced a strategic partnership with energy experts Perse and Absolar which aims to help businesses with their energy expenses and transition towards a greener future.

The high street bank is addressing energy usage reduction, cost-cutting, and decarbonisation as part of its climate change plan.

The journey to a greener UK

Research conducted by the bank has revealed that small and medium-sized enterprises (SMEs) in the UK have the potential to achieve half of the country’s carbon reduction targets. 

NatWest, in partnership with Perse, is taking proactive steps to guide businesses on their journey to achieve net-zero emissions. Through this collaboration, businesses gain access to personalised and free recommendations for reducing energy consumption. 

Perse has already enabled its customers to collectively save over £1 million and 4,000 tonnes of CO2 by optimising energy procurement, implementing simple operational adjustments, and identifying suitable low-carbon technologies.

Jane Lucy, co-founder and CEO of Perse, expressed her enthusiasm for the collaboration with NatWest, stating, “At Perse, we are proud to join forces with NatWest. Through this partnership, we look forward to empowering even more businesses to embrace sustainable practices and achieve their energy efficiency and financial goals.”

In addition, NatWest is pleased to announce a new alliance with Absolar, offering businesses the tools to explore the potential of adopting solar energy. 

Absolar’s cutting-edge technology remotely assesses the solar potential of commercial premises and provides estimates of potential savings through solar power usage. Typically, businesses receive comprehensive reports within 48 hours, allowing them to swiftly evaluate their options and access a directory of certified suppliers in their local area.

Nic Cory, Director at Absolar, also shared his excitement about partnering with NatWest, saying, “We are delighted to partner with NatWest in their commitment to helping businesses access the potential of solar energy. By highlighting the significant cost savings and environmental benefits together, we can accelerate the transition to a greener future and drive financial success for businesses.”

Conclusion

James Holian, Head of Business Banking at NatWest, does understand the pressures created by the cost of living crisis – and NatWest are well aware that for multiple small enterprises, staying afloat is the priority currently rather than going green. 

For example, Gillian Ferguson, owner of Twisted Empire Bakes in Stewarton, has been forced to cease trading. 

“I’ve just closed my business down. The cost of raw ingredients and energy were to blame, as they decimated my margins,” she explains. “I could have kept struggling on, but a combination of lockdowns, soaring inflation, and incompetence in the government made things too much of a struggle over the past few years, and I decided it’s no longer worth it.”

However, Hollan stresses the need for sustainability to go hand-in-hand with cost-saving. “As the UK’s biggest bank for business, we know that many business owners want their businesses to be more sustainable, but find it difficult to know where to start. That’s why we are proud to launch these new partnerships,” he explains, adding, “Through these, we look forward to giving businesses the tools they need, both to save money and to decarbonise their operations.”

See more: 

• UK brands that have gone into administration since COVID
• The UK areas most worried about the cost of living crisis

A recent study conducted by the British Business Bank has shown that there has been no improvement in the value of investment deals directed towards all-female founder teams over the past decade.

Despite a record high of 27% of deals going to teams with at least one female founder, all-female teams accounted for only 9% of deals in 2022 and received a mere 2% of funding, demonstrating no progress since 2011.

The report highlights the persistent lack of diversity in venture capital investment and presents actionable pathways to address the issue. It reveals that women, individuals from ethnic minority backgrounds, and those from lower socio-economic backgrounds face significant barriers in receiving venture capital investment compared to their male, white, or “elite” university-educated counterparts.

Progress is slow, but there is hope

In spite of the overall lack of improvement, there are some positive indicators of improving diversity in investment deals. The report shows that: 

• 13% of first-time equity deals were awarded to all-female teams in 2022
• 10% of those went to all-ethnic minority teams
• All-ethnic minority teams also received 19% of first-time investments 

Furthermore, founding teams with at least one ethnic minority founder accounted for 42% of the investment value of first time deals in 2022, a significant increase from 14% in 2013.

Navigating the path forward

In response to the report’s insights, gathered from 40 VC investors and 124 venture-backed businesses – The British Business Bank identified three key pathways aimed to enhance diversity in venture capital investment:

Promoting diversity at the top: increasing diversity within venture capital firms can lead to better investment decisions and foster a culture of inclusion for both diverse founding teams and venture capital staff. Diversifying leadership can help overcome biases that may exist within homogeneous groups.

Fostering inclusion in the investment pipeline: venture capital firms should actively seek out diverse founding teams and provide them with opportunities to secure funding. Networking events held during office hours, accommodating family care responsibilities, and engaging with accelerators are effective ways to identify high-potential business propositions from underrepresented groups.

Embracing transparency and accountability: venture capital firms must prioritise transparency and accountability to drive change and enhance diversity. Participating in industry-wide surveys, clearly communicating investment strategies, commitments to diversity and sharing ambitions to increase deals with underserved entrepreneurs are crucial steps.

Conclusion

The report highlights the need for increased access to investment for diverse founders. 

As Louis Taylor, CEO of the British Business Bank, emphasises: “The journey of raising venture capital can be challenging – but for under-served entrepreneurs, the barriers can be far higher and this needs to change.” 

Are you a woman seeking venture capital for your business? Check out our guide to the UK venture capitalist firms offering funding to female-founded startups in 2023.

52% of consumers are buying less as a result of the cost of living crisis according to an insights and analytics marketing company.

Deployteq polled over 2,000 consumers to track how their email marketing habits have changed as a result of a turbulent economic climate.

As wallets tighten, 28% of respondents are hunting for discounts and promotional codes in their inboxes, relying on customer loyalty programmes to maintain their spending habits.

This effort is more pointed amongst younger age groups. According to Deployteq, 33% of Gen Z and 33% of millennials actively hunt for discounts and promotional codes in their emails.

These numbers reflect the importance of finding ingenious ways to foster customer loyalty through perks. In fact, 74% of customers value discounts as a loyalty perk.

Becoming a customer magnet

Customer retention strategies, however, need to be strategically rolled out to land on both feet.

To Pauline Buil, Marketing Director for Deployteq, the key is data. “Data should be a central driver for brands and marketing teams, catering to customer desires to deliver greater customer experience, especially during a cost of living crisis where customer loyalty programs are vital for businesses.”

Data-led customer strategies can make it easier to personalise and target email promotions. Personalisation is increasingly becoming a constant demand from customers, as 37% of respondents felt frustrated when companies’ emails lacked knowledge about their previous purchases and tailored content.

In the race of customer retention, therefore, businesses relying on insights they gather from CRM and sales data are better placed to understand what buyers are looking for.

Could AI turbocharge personalisation and customer retention?

Personalising every individual email marketing campaign that goes out, however, would be incredibly time consuming. AI can turn this into a viable task in a matter of seconds.

As Simon Ward, CEO of Inspired Thinking Group, explains, “Data-driven insights are crucial to both marketing and retail, helping direct the use of automated technology to create personalised campaigns at a pace that truly engages customers and increases brand loyalty and business growth.”

Personalisation is particularly important with Gen Z, who tend to look beyond discounts for other value-add factors to become loyal to a brand. Understanding their values preference and personalising outreach, therefore, is key to retaining them as part of your customer base.

CRM systems that have adopted artificial intelligence can therefore be the difference between you and your competitor. The technology will help you roll out a larger number of marketing emails, as well as more personalised ones.

Einstein Analytics, a Salesforce Technology, is the world’s first generative AI for CRM. With the technology, small businesses can process customer data to better tailor marketing outreach.

As customers continue to find ways to cut price corners, enterprises that embrace AI will be better positioned to become customer magnets.

In the midst of the cost of living crisis, money worries are adding pressure to households across the nation. Now, research has identified the UK areas where financial concerns may be mounting fastest – giving small businesses in these regions extra incentive to be aware of their customers’ concerns.

Recent data from CMC Markets has shed light on the regions where these concerns are most pronounced, exposing the challenges faced not only by residents but also by small business owners in these locations. 

Amid these trying circumstances, the paramount concern for business owners has become how to sustain their livelihoods, retain an appeal to customers, and to keep trading through these tough times.

Ranking the regions with greatest financial worries

To calculate the UK regions indicating the greatest financial concerns, CMC Markets analysed Google Search trends at a local level. Topping the list is Wrexham, where there is an average of 7,767 monthly Google searches per 100K residents regarding financial help and advice. The residents of Wrexham display a particular interest in student finance help, surpassing other types of support.

Coming in second is Walsall, with 7,127 monthly searches per 100K residents for financial help. Among the sought-after terms in this area is “tax help near me,” indicating the pressing need for tax-related assistance.

Cardiff secures the third position on the list, as its residents conduct an average of 4,959 monthly searches per 100K population for financial support. The term “debt help” stands out as the most searched term in Cardiff, reflecting the area’s concern over managing debt and seeking viable solutions.

Swansea follows in fourth place, with 4,345 monthly searches per 100K residents. Similarly to Wrexham, Swansea residents prioritise financial assistance related to student finance, underlining the significance of this issue within the area.

In fifth place, Norwich residents demonstrate their financial worries by conducting 4,257 monthly searches per 100K population, with a particular focus on “how to get financial help”. 

Ranking sixth, Wigan residents exhibit an active search rate of 4,049 monthly searches per 100K individuals, with a strong emphasis on finding help to cover their bills. With energy bills still currently higher than ever, this highlights the pressing need for financial aid to maintain stability in the area.

Lincoln follows in seventh place, with residents conducting 3,792 monthly searches per 100K population for financial support. Their top searched term, “how to get financial aid,” indicates a desire for accessible resources to navigate financial challenges.

Liverpool secures the eighth spot, with residents conducting 3,690 monthly searches per 100K individuals for financial help. 

Mansfield and Bath complete the top ten, with 3,496 and 3,420 monthly searches per 100K residents, respectively. Mansfield residents exhibit a particular interest in “fixing credit scores,” while Bath residents seek guidance from financial advisors, demonstrating the demand for expert advice in these areas.

Things for UK small business owners to consider right now

The CMC Markets data gives a good indication of the financial strain households are under. For businesses, these are desperately hard times too. A huge number of businesses have gone into administration since COVID and the cost of living crisis.

Despite the economic challenges, there’s room for proactive and practical approaches for small business owners. Here are a few ways to navigate these customer concerns compassionately, while still finding a way forward for your business:

• Customer budgets are shrinking: as the cost of living rises, consumers may face constraints on their budgets, impacting their spending habits. This will be particularly hard if your business sells something considered a non-essential service. Business owners should remain sensitive to this reality and tailor their offerings to accommodate customers’ financial limitations.
• It’s time to tempt custom in innovative ways: to attract and retain customers despite the crisis, businesses must think outside the box. Offering limited-time promotions, loyalty programs, a freemium model or special bundles can be enticing strategies to entice potential buyers.
• Manage your overheads and cash flow: during this crisis, it’s essential to be mindful of potential reductions in revenue and the financial hurdles your business may face. Stay on top of your cash flow forecasts, as this will help you understand and plan for any potential financial shortfalls. Take a proactive approach by avoiding unnecessary expenses and exploring other possible cost-cutting measures. By doing so, you can better navigate the challenges and secure the financial stability of your business during these uncertain times.
• Don’t lose sight of staff wellbeing amid the cost of living crisis: try to remain mindful that your employees, too, are currently experiencing the brunt of the cost-of-living crisis. This can lead to heightened stress and mental health concerns. Business owners should proactively support their staff during these difficult times. If pay rises are not feasible, they can consider alternative benefits, such as flexible working arrangements or remote work options, to help employees cut commute costs and reduce financial strain.
• All in all, entrepreneurship will continue to thrive: In the face of adversity, the entrepreneurial spirit in the UK remains resilient and it’s widespread across the nation. In fact, the most entrepreneurial location in the UK was just recently revealed (and it’s not London!). Business owners should foster this spirit and look for opportunities within the crisis. Identifying market gaps, exploring new business models, and staying informed about government support schemes can help sustain and drive business growth.

Worried about starting a business in the current economy? We’ve articles on recession proof business ideas, plus 101+ small business ideas to start now.

Despite record numbers of female entrepreneurs starting a business in the UK last year, as well as outperforming men in indexes such as the Fortune 1000, the number of women applying to business awards is still less than half the number of men.

Using our unique data from the past three years, we analysed applications to the Startups 100 Index, the UK’s longest running index of the top 100 new businesses in the UK.

Our results paint a depressing picture when it comes to business awards. Businesses with a female founder make up, on average, 23.5% of business award applications. That’s less than half the number of male founder applicants (60%).

The figures suggest that confidence, not lack of opportunity, is the biggest barrier to female entrepreneur victory. Below, we examine the figures in further detail, as well as asking what awards providers can do to help close the UK’s Ego Gap.

More women are starting businesses in the UK – but far fewer are applying to awards

The number of women-led businesses has risen exponentially over the past few years. In part this is due to the advent of remote working, which has made starting a business more accessible, as well as cheaper, for budding entrepreneurs.

According to new data from GoDaddy, the number of women-led businesses surged by 11% between 2022 and 2023.

But while the number of women-led businesses rises, industry award shortlists continue to be dominated by male company owners.

Between 2021 and 2023, the amount of women applying to be featured on the Startups 100 Index grew by just 3%. Combined with the GoDaddy data, this represents a growth disparity of 8%.

Amelia Gammon is founder of bide planet. The company featured in the Startups 100 Index this year and Gammon appeared on Dragon’s Den in January.

Commenting on the challenges of being a female entrepreneur, Gammon says: “One of the biggest surprises I find as an entrepreneur is that it’s still an obstacle to be a woman. From personal branding workshops to investor pitching, it’s still a male-dominated area.”

Research suggests the UK’s gender funding gap could be putting off female applicants

One major deterrent for female entrepreneurs could be the investment funding gap. Earlier this year, we found that male-owned startups receive, on average, 6.2x as much funding as those founded by women.

This is a slight improvement on the previous year, when male founded companies received 7x more funding than women. However, the data still points to a stark gender inequality when it comes to raising early-stage finance.

External investment, like venture capital or angel funding, is often viewed as the biggest marker of success when it comes to launching a business. However, fewer deals being completed by women could be a factor in diminishing female entrepreneur confidence, making them less convinced of their ability to win an award.

Expert suggests imposter syndrome behind womens’ business awards phobia

Our analysis concludes that lack of self-belief, not lack of opportunity, appears to be the problem preventing women from applying to business awards. However, from our results, their fears are unfounded.

In fact, despite just 25% of women-led firms applying to the Startups 100 Index this year, a considerably higher proportion (33%) made it into the top 100 thanks to their impressive business ideas and growth stories.

So why are female business owners still reluctant to put themselves forward for the trophy?

Last year, Sahar Hashemi, co-founder of Buy Women Built, opined that the reason female entrepreneurs struggle to scale their company is a lack of self belief. “If you feel the statistics are against you, no one will ever try,” she told Startups.

To encourage more women entrepreneurs to feel the fear and do it anyway, plenty of initiatives, including  women-only awards and grants, have been established.

That includes the Two Chicks Future Female Entrepreneur, a mentorship programme now in its second iteration. The scheme is designed to offer the next wave of entrepreneurs business insights, mentoring and support from successful women in business.

Two Chicks co-founder Alla Ouvarova, explains: “Women are behind men when it comes to starting and scaling businesses, often because they lack the confidence and connections to do so, the same applies with women applying for jobs and awards!

“When women see others in a similar position starting businesses or receiving awards, it gives them the impetus to think that they can do it too. That’s why our scheme and others like it are very important.”

Reluctance to apply to awards is self-perpetuating cycle for female business owners

Ironically, applying to business awards could be the best way for women entrepreneurs to boost their credibility and confidence within the market.

Vitamin brand Nourished came sixth in the Startups 100 Index 2023. Founder, Melissa Snover holds the record for having raised £2m of seed finance – more than any other female-founded business in the UK.

Since appearing, the company has seen huge success, and even gone on to win the inaugural King’s Award. Snover tells us: “Appearing in the index has certainly validated our business as a market leading player within our industry, as well as raising our brand awareness.

“We were very grateful to have been listed amongst such impressive peers, and hope we can continue to be recognised by Startups 100.”

Startups 100 Index calls for more female applicants to close the Ego Gap this year

The Alison Rose Review of Female Entrepreneurship 2023 shows that women created a record number of 151,603 new companies last year.

Having highlighted the shortfall in the number of women applying to industry awards, we’re appealing to this flourishing UK female entrepreneur community to submit their businesses to next year’s Startups 100 Index.

We’re making our judging process more inclusive than ever, to ensure we celebrate the business owners with the most growth potential – not just the biggest cheque.

To do this, we’ve shifted the focus from funding and finance. Every entry will be judged according to five criteria:

💪 Strength of concept (is your idea unique?)

💡 Innovation (how is your idea disrupting the market?)

🏆 External validation (any significant achievements eg. notable partners or clients)

📏 Size of opportunity (what ambitions do you have in terms of scale-up?)

💰 Finance (how much revenue have you generated from what amount of funding?)

On average, our figures show that half of female-led companies are self-funded, compared to just 32% of male organisations.

Knowing how expensive it can be to launch a business from scratch, the Startups 100 is completely free to enter.  We won’t charge a penny for you to submit your application, so you don’t have to worry about breaking the bank to access the wealth of benefits the index offers.

Are you a new business owner with a bold and brilliant idea? Apply now to the Startups 100 Index 2024 to be in with a chance of being named one of the most exciting new startups in the UK.

The rising cost of living is giving today’s graduates unrealistic wage expectations, causing difficulties for recruiters hiring for entry-level positions.

According to the UK Job Market Report by smarter job search engine Adzuna, vacancies are rising across all employment types except for graduate roles, which are instead falling.

Earlier this year, Startups found that UK graduates want a £30,000 annual wage for their job – around £5,000 more than the real, average starting salary.

Recruiters now say that the higher pay stipulations from students have become unaffordable for businesses, many of whom have paused hiring in the face of mounting economic uncertainty.

UK graduates face greater competition for job opportunities

Job adverts for graduate roles have dropped considerably year-on-year, as hiring managers appear to shun university leavers.

Adzuna analysis shows that the number of advertised graduate roles at the beginning of 2023 was 8.3% down when compared to December.

Over the past five months, this figure has continued falling, month-on-month, to total a drop of 20.8% in the number of vacancies for university leavers. Compared to the same period last year, the number of advertised graduate vacancies 12,983 is now 11.6% lower.

Available graduate roles are also taking almost 40 days to fill, on average – among the longest of any hiring demographic.

With an estimated 570,000 UK students set to graduate this year, around 44 people will be vying for every available opportunity in summer 2023 (compared to 36 applicants per role a year ago).

Graduates push for financial support to survive cost of living crisis

Generation Z staff members – those aged between 16-24 and the cohort leaving university this year – have borne the brunt of the financial stress caused by today’s inflationary environment.

Research by money.co.uk shows that one in eight people in this age bracket are ‘severely suffering’ over money concerns; the most of all groups analysed.

Emily Stock is Talent Partner at MVF Global, a tech company based in London. Stock says that the company has cut back on hiring as a result of the economic slowdown.

However, she has noticed that student leavers are chasing much larger salary offers, banking on a starting wage of “over £30,000”. As she sees it, the pressure from young employees for a pay increase is not without cause.

“There is more demand on entry level roles to be present in the office for initial training and upskilling,” she tells Startups.“This makes monthly travel costs much more than senior roles which tend to be hybrid or remote. The cost of living crisis has definitely also had an effect.”

The cost of travelling into work is a big concern amongst graduate workers. Earlier this year, our survey into employee attitudes to a four-day week discovered that 26% of Gen Z respondents wanted a shortened work week as a way to reduce commuting expenses.

Businesses are reacting to the trend. Average annual uni leaver salaries have been steadily increasing over the past 12 months. In May, the figure hit £27,802 – a spike of 6.62% compared to last year and over double the average increase across all pay packets.

Why businesses must not shy away from hiring graduates

The Adzuna findings suggest there is less urgency among employers to fill graduate roles. Given there are lots of candidates out there, business leaders may feel that hiring for junior roles is less important than recruiting for mid or senior positions.

More applications per role can also mean a higher workload for employers to process applications to find the best candidates.

Nonetheless, most business owners will recognise that avoiding hiring for entry-level roles is not a sustainable model. Gen Zers are the future of the workplace. The UK’s growing population means that by 2025, the group will account for 27% of the workforce.

Not to hire them would also jeopardise one of the most important people management strategies: succession planning. The process involves finding and developing future leaders or C-Suite executives, as well as more specialist individuals, from your existing manpower.

If a company does not invest in training and developing young, home-grown talent, managers will create a ticking time bomb for their long-term recruitment strategy. When the dreaded day comes that an indispensable employee hands in their notice, there will be no internal replacement.

How to attract and retain talent without overspending

Most bosses would love to hand new recruits a giant pay cheque if it would secure their long-term loyalty. If only it were that simple.

In reality, the majority of small businesses are in no position to be handing out party favours. Months of crippling overheads, labour shortages, and stagnant economic growth have battered SME cash forecasts.

Businesses have already raised wages to peak levels. In fact, May saw average advertised salaries rise by 3.3%, nearing the highest level since Adzuna records began.

So how can business owners find a compromise between meeting inflated graduate demands, without tanking cash reserves?

Stock recommends investing in organisational culture to create a work environment where young people feel supported, and where company values reflect their personal beliefs.

“I see many young job seekers looking for roles in businesses that have a fun, collaborative, startup culture. In fact, a lot of companies are now trying to replicate this to attract more graduates,” she assesses.

Learning and development (L&D) initiatives are one incentive that workers have said would keep them satisfied in their current job role. For the business case, L&D programmes are also an excellent way to shape and nurture talent for future scale-up.

Other measures, like offering a cycle to work discount scheme, can help to lift financial pressure on employees during the difficult months ahead – without risking SME budgets.

Next up: learn about 50+ benefits and perks businesses can use to boost job adverts.

Last month, employee engagement rates in the UK were uncovered to be amongst the lowest in the world. Now, research has revealed that levels are so low, a significant number of workers would prefer for their manager to be replaced by an AI tool.

Business Name Generator surveyed 1,000 company employees in the UK to examine what’s frustrating today’s workers. The results show that, on average, 26% of respondents think a robot would be better at performing managerial tasks over their current boss.

The same report found that UK employees feel like their work is not being recognised by senior leaders, with 14% of respondents naming being underappreciated as their biggest workplace gripe.

The results reflect a worrying trend in the UK business landscape. As human interaction becomes more infrequent, it seems that leadership skills like communication, leadership, and teamwork are being forgotten, opening the workplace up to conflict.

Lack of appreciation is the biggest pet peeve UK employees have with their boss

Earlier this year, we reported that 80% of workers in the UK don’t believe AI will replace them in the workplace, despite rapid adoption of the technology across all industries in 2023.

Nonetheless, Business Name Generator’s research finds that 18% are hoping that the technology will take over one role: their manager’s.

From micromanaging to favouritism, the report discovered there are a number of common complaints that UK employees have with supervisors. Topping the list of grievances was a feeling of being underappreciated, followed by lack of empathy (12%) and favouritism (12%).

As a result of the economic slowdown, and a fall in real wages, many staff members are feeling undervalued for their efforts.

A third of respondents to the Business Name Generator survey believed a robot boss would be fairer in making unbiased decisions, suggesting that some respondents feel they may be being overlooked in place of other colleagues.

Younger workers feel least connected to their bosses

The Business Name Generator research also highlights a difference in generational attitudes to managers’ replacement by AI.

One in three respondents aged 18-24 say they would be happy to have a robot boss, compared to just 12% of people over the age of 55.

This group’s comfort with machine supervision could be a result of their coming of working age during the pandemic. Having joined the workforce as remote and hybrid work became the norm, they are used to missing out on face-to-face interaction.

That said, young workers’ discontent with management could be a self-perpetuating cycle. Research shows that 74% of business leaders believe Gen Z is more difficult to work with than any other generation.

Employees think robots display better emotional intelligence than managers

Respondents did also express concerns about having an AI boss. Just under half of employees said they would struggle to see a robot as an authoritative figure, while 43% admitted they would feel scared to have AI software monitoring their performance.

Surprisingly, however, over one in five (22%) admit they’d feel more comfortable talking about their frustrations at work to a robot over their boss. One in four also expressed a belief that a robot boss would help to reduce ‘workplace drama’.

Ironically enough, this suggests that today’s employees view machines as better at managing the ‘human’ elements in the workplace, such as conflict resolution.

Soft skills training could be key to fixing engagement crisis

While it might be easy for managers to feel frustrated by the Business Name Generator report, it does provide important insights that managers can use to develop an engagement strategy for the workforce. Chiefly, the problem of collaboration in today’s online world.

The sudden arrival of virtual meetings and online messaging has blindsided managers, leaving them struggling to implement the human side of their role through a screen.

There is a real threat that employee grumbles could grow into resignations. According to a study by Work Human, unappreciated workers are twice as likely to quit, upping the ante at a time when staff turnover is already at a record rate.

Simple measures such as educating staff members on the importance of teamwork, and investing more in learning and development programs for line managers, could give bosses the toolset they need to rebuild their professional rapport with reports.

According to Reward Gateway, 72% believe they would feel more satisfied at work if they were simply thanked for their hard work.

Leaders who put time and effort into fostering meaningful relationships, and communicate the challenges openly, will ensure employees feel more supported and valued by leaders – boosting staff morale. Now let’s see a machine do that.

More on this topic: how to improve employee engagement in the modern workplace.

Small businesses have been warned not to neglect environmental and social commitments during the current downturn, as research shows consumers are doubling down on ethical consumption.

Management consultancy Baringa polled 1,002 consumers in the UK to explore what motivated their purchasing habits. 79% of respondents said that, in the context of the current economic downturn, they are more likely to purchase from companies they consider “kind”.

Despite the cost of living crisis hitting consumer wallets hard, it seems that cost is no longer the main factor that shoppers use to make a purchasing decision. Only 6% of UK respondents reported they would now choose a product or service on price alone.

A Baringa expert is now urging small business owners to review their Environmental, Social, and Governance (ESG) reporting and credentials, to ensure they do not sacrifice long-term customer relationships for short-term cash flow preservation.

‘Kindness’ named biggest consumer driver

The challenge of managing cash flow during a recession has seen many companies forced to make difficult decisions.

Some SMEs have had to raise prices to counteract the rising cost of raw materials. Or, at the very least, reevaluate their pricing strategies. Others have opted to make redundancies in order to keep staffing overheads down.

None of these are easy decisions for managers. However, in the age of the internet, people are quick to make moral judgements on firms. Business owners must be careful that their thinking is communicated sensitively to consumers, who are becoming more aware of, and strategic with, their spending power.

Of all UK respondents that Baringa surveyed, 50% reported they were more likely to buy from a company they considered to have a “kind” organisational culture, because they wanted these firms to succeed during the economic downturn.

Similarly, 48% of UK consumers said they had considered the behaviour of a company or its leadership while making a purchase.

Guy Dent, Partner at Baringa, states that smart companies should respond to the research by planning a review of the ethics of their actions. “They should do this for self-interested reasons,” he claims. “Unkind firms will be increasingly punished by consumers.”

As evidence, Dent points to the growing popularity of ethical company structures, such as B Corporations, which have grown exponentially since the first UK B Corp appeared in 2015.

“Put together this means a heightened awareness of ethical issues when making purchases,” he says. “And this awareness will persist even in the face of a recession.”

Ethical employment named top concern for consumers

In the face of growing strike action amongst UK employees, who are campaigning for better treatment and working conditions, it’s not surprising that respondents said the biggest offence a company could commit was employee exploitation.

80% of respondents reported they would avoid buying from a company who had recently laid off large numbers of staff. 40% claim they would do so even if this decision cost them more.

Likewise 54% of UK respondents said they would accept higher costs to avoid firms who were known to have treated their staff poorly. Almost the same number (53%) would pay more to avoid firms who treated their suppliers badly.

Commenting on the findings Dent advises recession-hit companies that efforts put into reputation and ethics should be seen as an investment, not as luxury spend.

“If you ditch your environmental and social commitments, lower your customer service standards, switch to unscrupulous suppliers, or cut staff in a manner that is unfair, you risk improving your balance sheet today only to damage your sales tomorrow,” he warns.

Being purpose-led can bring benefits to companies, not just their customers. Read more in our guide on how to use CSR to improve staff morale.

Younger generations use spending power to supercharge ethical firms

The shift in consumer behaviour towards favouring kindness may be due to the incoming “woke generation” of young buyers.

Back in 2018, a McKinsey report described Gen Z consumers as a group who will “mobilise themselves for a variety of causes [and] make decisions and relate to institutions in a highly analytical way.”

Post-pandemic, this trend has not faded. According to Baringa, Corporate Social Responsibility (CSR) activities had the greatest influence over purchase decisions amongst Gen Z respondents.

Baringa found that, of the cohort of economically-active “Gen Z” (people aged between 16 and 24) consumers in the UK, 62% refused to buy a product or service in the last two years because the company was unkind. Just over 2 in 5 of those aged 45-54 said the same.

Companies should use these learnings to maximise the impact of their ESG policies. For example, by publishing any social or green credentials on platforms such as TikTok, which 40% of young people now use as their main search engine.

Communicating any time or money spent on CSR commitments to consumers will help to translate the expenditure into higher engagement and, ultimately, greater profit.

This is not just a smart way to survive a recession – it will also put you in a greater position for growth once the UK economy begins to improve.

Sanjay Lobo is founder of onHand, an on-demand app for volunteering that featured in the Startups 100 Index earlier this year.

Lobo says, “at the end of the day, CSR should feed into all business decisions. Ultimately businesses who set this up from the outset are likely to set themselves up for success.”

Learn about the companies championing kindness:

• Kind Bag
• Grubby
• Beam
• Bide Planet