Direct Line for Business has unveiled that there are approximately 2.17 million microbusinesses in the UK, each employing fewer than nine individuals. The South East of England and London emerge as hotspots for micro-entrepreneurship, boasting over 700,000 such businesses in these regions. An analysis suggests that up to one in thirty Britons could potentially be a microbusiness owner.
This study also reveals that, while 18% of microbusinesses in the UK operate with a turnover of less than £50,000, there are more than 23,500 microbusinesses with turnovers exceeding £1 million, emphasizing that success is not solely linked to business size. Currently, the average turnover for UK microbusinesses is £286,879, in contrast to SMEs with an average turnover of £703,419.
London leads the way with over 400,000 microbusinesses, accounting for 18% of the UK’s total. This translates to 47 microbusinesses per 1,000 people, the highest ratio in the UK. Following London, the South East hosts 337,385 microbusinesses, and the East of England is home to 216,700 microbusinesses. These regions have 38 and 36 microbusinesses for every 1,000 people, respectively.
Nick Breton, Head of Direct Line for Business, commented: “Britain is a nation of entrepreneurs, as evidenced by the presence of nearly 34 microbusinesses for every 1,000 people in the UK. These enterprises make up 89% of all companies across the UK, making a substantial contribution to the business economy. It’s not surprising to see that London and the South East account for more than a third of the nation’s microbusinesses, as families in these areas often explore additional sources of income by turning their hobbies into professions.”
