Many local businesses across the UK have been struggling to stay afloat in the last few years. According to the Office of National Statistics (ONS) there have been 345,000 business closures across the UK in 2022, and over 295,000 in 2023. Staggering numbers, right?
Here at Red Arrow Marketing we love supporting local businesses and seeing them succeed. In this article we are going to discuss why this happens, and give our suggestions on how to save your local business in 2025.
Understanding the Current UK Economic Climate
The UK economy has faced significant shifts in recent years. From Brexit adjustments to the ongoing cost-of-living crisis, inflationary pressures, and continuously rising energy bills, businesses of all sizes have been forced to adapt. While larger corporations may have the resources to withstand uncertainty, it’s local businesses that often feel the greatest strain. Yet, despite these challenges, local businesses remain a cornerstone of both national and regional economic growth.
The Role of Local Businesses in the Economy
Local businesses do more than just serve customers — they create jobs, foster innovation, and keep money circulating within the community. According to the Federation of Small Businesses (FSB), SMEs (small and medium-sized enterprises) account for over 99% of all UK businesses and contribute around half of private sector turnover.
At a national level, this means that local businesses drive GDP growth, support supply chains, and contribute to tax revenues. On a local level, they make our high streets vibrant, create employment for local residents, and encourage community loyalty. In short, without local businesses, the UK economy simply wouldn’t function.
Let’s have a look at two examples to put this in perspective.
Example 1: A Local Roofing Business
Imagine your local Joe, who started as a self-employed roofer, now has grown into a small business employing 3 roofers, 2 office staff, training 2 apprentices, investing in training, and sourcing materials from nearby suppliers.
Their impact doesn’t stop there — every roof repaired or installed helps protect the value of local homes and commercial properties, which in turn strengthens the housing market and supports property-related industries.
This ripple effect is powerful: a single roofing business supports not only its employees but also local merchants, suppliers, and customers.
Example 2: A Local Aesthetic Clinic
Now, take the example of a small aesthetic clinic with a shopfront in the high street. Beyond offering treatments, this business attracts footfall into the town centre, boosting nearby cafés, shops, and complementary services. It creates employment opportunities for beauty therapists, receptionists, and marketers, while also providing a service that keeps residents spending locally rather than travelling to larger cities.
Again, the local economy benefits directly and indirectly from this business staying open and thriving.
How Local Businesses Can Survive in the Current Climate
The rising cost of living has reduced consumer spending, meaning local businesses must work harder to attract and retain customers. Survival now depends on more than simply offering a good product or service — visibility, trust, and accessibility are crucial.
Customers are more likely to research online before spending money, compare reviews, and look for reassurance through digital presence. Businesses that don’t adapt risk losing ground to competitors who have invested in digital marketing, SEO, and online advertising.
Why Going Digital is the Way Forward
Local businesses cannot rely on word-of-mouth alone anymore. The reality is that customers are searching on Google, browsing social media, and reading reviews before deciding where to spend. That’s where professional digital marketing support comes in.
By making your business visible online, you’re not only reaching new customers but also building your brand and long-term loyalty. From ranking higher on search engines, to being visible on Google Maps, to creating a strong social media presence, the right marketing strategy can make the difference between a struggling business and one that thrives.
How Red Arrow Marketing Helps Local Businesses Win
At Red Arrow Marketing, we encourage people to open their own businesses, and we are here to help you start. We strongly believe that holding back from the dream of owning your own business is not only an opportunity missed, but also a huge loss to your local community.
We’ve worked with companies across multiple industries — from trades like roofing to customer-facing businesses like aesthetic clinics — ensuring their diaries stay full and their phones keep ringing.
In the last 15 years of us being in the digital marketing industry, many things have changed. We, as well as all the other businesses in the UK, had to learn and adapt to changes in the economy and huge shifts within the industry. We understand your individual unique concerns, and we are offering our expertise to guide you through your business journey.
Our expertise covers:
- SEO to help businesses rank higher on Google and other search engines.
- Website design & eCommerce development that converts visitors into customers.
- Social media management & PPC campaigns to drive instant visibility and create a narrative that speaks to your audience and communicates your brand values.
- Google Business Profile optimisation to capture local searches and demonstrate what other customers say about your products or services.
- Branding & strategy to stand out in competitive markets and gain loyalty from your target consumers.
What sets us apart is not just our experience but our commitment to integrity, transparency, and measurable results. We don’t just run campaigns; we become your marketing partner, tailoring strategies to align with your exact business goals.
Conclusion: The Future Belongs to Businesses Who Adapt
Local businesses are the backbone of the UK economy — but in today’s climate, survival requires adaptation. No matter if you’re a tradesperson, clinic owner, or shopfront retailer, the ability to be found online is now non-negotiable.
At Red Arrow Marketing, we’re here to ensure that your business not only survives but thrives, no matter the economic challenges.
Book your consultation today to talk about your challenges and aspirations. Let’s make your business the next local success story.
