Micro-businesses are increasingly important to economy – research reveals

Micro-businesses are establishing themselves as an increasingly important part of the UK economy, according to new research which reveals that the UK is the fourth most micro-business dense country in the world.

Here in the UK, we have 81 micro-businesses per thousand people, only narrowly behind, Indonesia, the USA and the Czech Republic, who come out on top with 81 micro-businesses per thousand residents.

The Global Micro-Business Impact Report, conducted by Vistaprint, looks at the impact that micro-businesses are having on the world’s economy and combines their findings with the latest data from the European Commission and the Organisation for Economic Co-operation and Development (OECD).

According to the report, the 10 most micro-business dense countries are:

  1. Czech Republic (89*)
  2. Indonesia (86*)
  3. United States of America (86*)
  4. United Kingdom (81*)
  5. Portugal (72*)
  6. Slovakia (69*)
  7. Iceland (68*)
  8. Liechtenstein (67*)
  9. Sweden (66*)
  10. Paraguay (62*)

*Number per 1000 people

The results are perhaps surprising; although the UK appears to be a nation of entrepreneurs, this does not translate into hard cash and profits, with micro-businesses contributing less to Gross Added Value (GVA) than their international counterparts.

In the UK micro businesses account for 20.4 per cent of the UK economy, which is measured in GVA. Compare this with Norway, which achieves a GVA of 38.1 per cent.

UK micro-businesses also employ less workers than in some other countries, providing jobs for 17.3 per cent of the British workforce, compared with Australia which employs 44.5 per cent and Spain narrowly behind them at 21.1 per cent.