Small Businesses in the Construction Sector

The government website defines a business as small if they are producing a turnover of less than £10m. The construction sector employs an approximate 9% of the total UK workforce, which equates to 3.1 million people.

The latest data from the ONS website show that businesses in the construction & built environment sector classed as small businesses total a huge 99.1%. This is understandable due to the number of subcontractors working within this sector. The number of sole proprietors and partnerships operating within this percentage is approximately 59% of the total.

Here are 5 interesting statistics about SME’s in the UK construction sector:

1. There are approximately 353,000 companies operating in the construction sector with a turnover of less than £10 million, defining them as small businesses (Source: Office for National Statistics)
2. The construction sector employs around 3.1 million people in the UK, which is approximately 9% of the total UK workforce. (Source: Office for National Statistics)
3. The UK construction sector contributed £117 billion to the UK economy in 2020, which is equivalent to around 6% of the total Gross Value Added (GVA). (Source: Department for Business, Energy & Industrial Strategy)
4. Small businesses in the UK construction sector are leading the way in adopting digital technology, with 70% of small construction businesses using mobile or web-based apps for work-related purposes. (Source: Federation of Master Builders)
5. SME’s in the UK construction sector are more likely to hire apprentices than larger businesses, with 69% of small construction firms offering apprenticeships compared to 55% of medium-sized firms and 34% of large firms. (Source: Federation of Master Builders)