How small retailers are driving the UK economy

July was Independent Retailer Month – a chance to encourage people to shop locally, supporting the high street and the small retail business entrepreneurs trying to compete against multinational online retailers and reseller platforms. At Start Up Loans, we are delighted to be in a position to support small retail businesses, whether they have a presence on the high street, a pop-up shop, or are based online. Last year, 1,862 of the 11,502 loans Start Up Loans – went to retailers, providing approximately £21.5m of finance to small retail business.

In April this year, Start Up Loans expanded its eligibility criteria, we can now provide first loans to business owners who have been trading for up to five years, enabling us to support even more independent retailers than ever before.

Providing small retail businesses access to finance throughout the devolved UK Nations boosts the wider economy. For example, the Local Shop Report 2025 found that last year convenience stores generated almost £49bn in turnover, provided flexible local employment for over 443,000 people, and invested in excess of £900m. That is a major contribution to the UK economy from just one niche within the sector.

These are significant and impactful numbers and it is clear that a healthy small business retail sector – both online and bricks and mortar – creates jobs keeps high street units occupied, and the subsequent vibrancy that well-run shops add to our public spaces. This is what makes it so important for Start Up Loans to provide access to finance and for consumers and industry bodies to support local business, additionally the indirect economic value independent retailers add to funding vital public services should also be taken into account.

I asked the owners of some of the independent retailers Start Up Loans has helped about how their businesses support the wider community.

Laura Suominen from Ikigai in Lymington Spa told me that: “Independent retailers not only fulfil our shopping needs, but also create genuine human connection, strengthen local communities and offer experiences that larger brands simply cannot. Local purchases keep money within the local economy, supporting creativity and diversity and help to preserve and enrich the character and culture of streets and towns. To not support local independents would be to disconnect from experiences that keep us human.”

Claire Smith, owner, Woolley Baa Baa added: “Supporting independent retailers keeps money in the local economy and, because our supply chain is smaller, so is our carbon footprint. It strengthens our community, as our presence makes the town vibrant, supporting local charities and community projects. We offer an enhanced personalised and meaningful relationship with our customers.”

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