Recent figures released by Direct Line for Business revealed that there are nearly 2.2 million micro-businesses operating in the UK, suggesting that, “one in thirty Britons could be a microbusiness owner”.
Success is not necessarily tied to size
The analysis reveals that, despite the average turnover currently standing at £286,879, 23,500 businesses have a turnover of more than £1 million, stressing the importance that “success is not necessarily tied to size”. This philosophy presents an opportunity to businesses that can provide support services and invest in their growth.
With the figures demonstrating the potential that micro-businesses can possess, the need to offer them financial support has never been so important. A financial solution from LDF could provide those businesses on the lower end of the revenue scale with an alternative option to having to access funding via traditional means, freeing up their cash flow and maximising their potential for further development.
The top 12 UK regions for micro-businesses
The study highlights that London is top of the table with more than 400,000 micro-businesses, closely followed by the South East with 337,385. The East of England and the North West both follow with over 200,000 each. With London topping the table, and the North East on the lower end with just over 57,000, the figures equate to an average of 33.5 microbusinesses per 1000 people in the UK.
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."