Last Updated on: 22nd November 2023, 03:09 am
Direct Line for Business reveals there are 2.17 million microbusinesses with fewer than nine employees across the UK.
The South East of England and London is a hotbed for micro entrepreneurship, with over 700,000 of these businesses located in this region. Analysis reveals that up to one in thirty Britons could be a microbusiness owner2.
The analysis also revealed that, while one in five (18 per cent) microbusinesses across the UK operate on a turnover of less than £50,0003, there are more than 23,500 microbusinesses in the UK with a turnover of more than £1 million, showing that success is not necessarily tied to size. The average turnover of the UK’s microbusinesses currently stands at £286,879, compared to the average turnover for SMEs of £703,419.
London leads the way with more than 400,000 microbusinesses, accounting for 18 per cent of the UK total. This also means that London has 47 microbusinesses per 1,000 people – the highest ratio in the UK.London is followed by the South East (337,385 microbusinesses) and the East of England (216,700 microbusinesses) as the UK’s microbusinesses hotspots, which have 38 and 36 microbusinesses for every 1,000 people respectively.
Nick Breton, Head of Direct Line for Business said: “Britain is a nation of entrepreneurs, as highlighted by the fact that there are nearly 34 microbusinesses for every 1,000 people in the UK. These enterprises account for 89 per cent of all companies across the UK which is a huge contribution to the business economy.
“It is unsurprising to see that London and the South East account for more than a third of the nation’s microbusinesses, as families in these areas are often seeking to gain extra sources of income by turning their hobbies into professions.”