A recent report by insurance group RSA has found that the number of micro businesses in the UK has grown by 43% since 2000.
Micro firms are defined as businesses employing less than ten employees.
The research found:
- 1.4 million new micro firms have launched since 2000
- micro firms are the only size category to have increased their proportion of UK businesses since 2000
- zero-employee firms are the fastest growing business size
- zero-employee firms have increased 21% since the recession
- 75% of UK businesses were zero-employee firms in 2013.
Unfortunately, however, the study also found that the number of high-growth businesses has fallen by 20% since 2005. ‘High-growth’ means an average 20% annual growth in employment over 3 consecutive years.
The study reveals:
- medium-sized firms are more likely to have become small (16.5%) than large (3.6%) between 2008 and 2011
- high-growth firms accounted for 5.8% of UK businesses (estimate)
- all regions except London saw decreasing numbers of high-growth firms
- Wales saw the largest reduction, where the proportion of high- growth firms fell by a half
- high-growth businesses in Scotland fell by a third.
Overall the surge in micro entities is good news for the economy with Britain proving to be a great place to start a business, and although the reduction in high growth firms is disappointing it is perhaps not surprising after a long period of recession.
At Burgis & Bullock we have dedicated teams focusing on micro and small businesses as well as larger clients, and we have direct access to funding streams through CW Clearing House and the CWLEP as well as being able to provide ‘hands-on’ assistance to all growing businesses through the UK Growth Voucher scheme. Contact us today on 0845 177 5500 or use our online form for a free evaluation of your needs.