The sharing and rental economy is the UK’s fastest growing business sector, new research claims.
According to the report by O2 Business and the Centre of Economic and Business Research, the growth in the industry is driven by the rise of start-up companies inspired by the likes of Airbnb in the US which allow home owners to rent out space to travellers.
Examples of successful sharing economy companies in the UK include Under The Door Mat, a British version of Airbnb; Vrumi, which lets home owners rent rooms as workspaces, and Just Park, a mobile app for people to rent out car parking spaces on their drive.
Other UK industries experiencing strong growth fuelled by entrepreneurial activity are the environmental sector, boosted by increasing green regulations, and the technology industry with a large number of new firms in computer programming, scientific research and the manufacture of computer and electronic products.
Drinks manufacture also features in the top 10 as Britain enjoys a boom in craft beer and health drink start-ups
The UK’s top 10 growth industries:
- Rental and leasing activities
- Other professional, scientific and technical activities
- Activities of head offices; management consultancy activities
- Architectural and engineering activities; technical testing and analysis
- Office administrative, office support and other business support activities
- Publishing activities
- Manufacture of computer, electronic and optical products
- Computer programming, consultancy and related activities
- Manufacture of beverages
- Scientific research and development
As well as high growth industries, the report also identified the sectors most at risk.
The entertainment industry, including video, sound recording and music production, tops the list, impacted by increased competition from competing US brands.
Manufacturers also feature prominently, in particular companies manufacturing basic metals, and the retail trade sector is facing challenges due to increased e-commerce competition, especially specialised small retailers selling books, games and music, the report said.
The UK’s top 10 sectors in decline:
- Motion picture, video and television programme production, sound recording and music publishing
- Other manufacturing
- Postal and courier activities
- Water transport
- Wood and cork product manufacture, except furniture; manufacture of straw and plating materials
- Retail trade, except motor vehicles and motorcycles
- Manufacture of chemicals and chemical products
- Manufacture of basic metals
- Printing and reproduction of recorded media
- Programing and broadcasting activities
Ben Dowd, O2 Business director, said: “It’s encouraging to see the variety of growth industries in the UK, suggesting renewed economic confidence and a vibrant start-up scene.
“However, as the report shows, increased innovation and competition can result in some sectors struggling to cope with the pace of change.”
SOURCE: EnterpriseNation.com
