Enterprising Nation: one in 30 Britons a microbusiness owner?
Research from Direct Line for Business finds that there are nearly 2.2 million microbusinesses across the UK
- Nearly 2.2 million microbusinesses across the UK
- London home to nearly one in five of the UK’s microbusinesses
London, 08 June 2016: New analysis from Direct Line for Business1 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 business 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.
Table One: Regional breakdowns of the UK’s microbusinesses
|
Region |
Number of microbusinesses |
Share of the UK’s microbusinesses |
Microbusinesses per 1,000 people |
|
London |
400,710 |
18.4% |
46.9 |
|
South East |
337,385 |
15.5% |
38.0 |
|
East of England |
216,700 |
10.0% |
36.0 |
|
North West |
207,190 |
9.5% |
29.0 |
|
South West |
195,890 |
9.0% |
36.1 |
|
West Midlands |
168,905 |
7.8% |
29.6 |
|
Yorkshire and The Humber |
150,585 |
6.9% |
28.1 |
|
Scotland |
147,300 |
6.8% |
27.5 |
|
East Midlands |
145,200 |
6.7% |
31.3 |
|
Wales |
86,840 |
4.0% |
28.1 |
|
Northern Ireland |
59,600 |
2.7% |
32.4 |
|
North East |
57,050 |
2.6% |
21.8 |
|
UK Total |
2,173,355 |
100% |
33.6 |
Source: Analysis by Direct Line for Business
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.”
For further details on Direct Line for Business Insurance, visit https://www.directlineforbusiness.co.uk/small-business-insurance/
Notes to editors
1 Direct Line for Businesses’ analysis of ONS data covering the counts of micro employment size band classification (0-9 employees) enterprises, broken down by country and region for 2015
2 Working on mid-2014 population estimates for the UK population standing at 64,596,752, meaning that 2,173,355 microbusinesses represent one business per 29.7 individuals
3 Direct Line for Business analysis of ONS data covering the Count of VAT and/or PAYE based Enterprises in the United Kingdom by specified Employment and Turnover Size bands as of March 2015
For further information please contact:
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Antonia Green
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Direct Line for Business
Jade Trimbee
PR Manager
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01372 839 452
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07825 315 931
Email: jade.trimbee@directlinegroup.co.uk
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