UK productivity lagging behind G7 nations
The output among UK workers was more than 15% lower than the average for the G7 nations in 2016, new data shows.
While employment is at an all-time high across Britain, figures from the Office for National Statistics show that workers in the USA produced 26.5% more on average.
Those in France and Germany were also more productive, by 11.5% and 8.5% respectively, while only Japan had a lower output per worker.
The figures showcase how difficult it can be for small businesses to ensure they are getting value for their operational outlays.
In terms of output per hour worked, Germany and France lead the way with productivity levels 25.6% and 22.3% greater in those two countries than in the UK.
The UK also lags behind the US and Italy, where the figures were 21.8% higher and 9% greater respectively.
It is claimed the UK economy could grow by 25% if productivity matched that of Germany, which would provide a huge boost to businesses of all sizes.
However, productivity growth across the G7 is slow, and even though the UK is above the G7 average in that regard, it still means businesses are struggling.
Start-ups can help to boost the UK and their numbers continue to grow – more than 5.5 million now operate on UK shores – but they also need to be managed effectively.
Research from Ormsby Street claims that more than nine in ten firms survive their first year in operation, although that figure drops to four in ten after five years.
While cash flow and late payments are major factors that result in business insolvency or the need for financial measures, productivity is also key as small firms need to do whatever is possible to stay ahead of their competition.
Those that do experience a reversal in fortunes may wish to consider undertaking an independent business review in order to develop more practical approaches to business.
By Phil Smith