There are 2.17 million microbusinesses with fewer than nine employees across the UK, according to a study.
The survey by Direct Line for Business further reveals the South East of England and London is a hotbed for micro-entrepreneurship, with more than 700,000 of these businesses located in this region.
The analysis also reveals that, while one in five (18 per cent) micro-businesses across the UK operate on a turnover of less than £50,000, there are more than 23,500 micro-businesses 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 micro-businesses currently stands at £286,879, compared to the average turnover for small and medium-sized enterprises (SMEs) of £703,419.
London leads the way with more than 400,000 micro-businesses, accounting for 18 per cent of the UK total.
This also means that London has 47 micro-businesses per 1,000 people, representing the highest ratio in the UK.
London is followed by the South East (337,385 in total) and the East of England (216,700) as the UK’s micro-businesses hotspots, which have 38 and 36 micro-businesses for every 1,000 people respectively.
Nick Breton, head of Direct Line for Business says that Britain is a nation of entrepreneurs, as highlighted by the fact that there are nearly 34 micro-businesses 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 micro-businesses, as families in these areas are often seeking to gain extra sources of income by turning their hobbies into professions.’