The number of people setting up micro businesses has risen dramatically new figures have shown.
There are now a record-breaking 5.5 million companies in the UK with 99 per cent of these being SMEs according to new figures by the Department for Business, Energy and Industrial Strategy.
In 2000 there were 3.5 million SMEs rising to 4.5 million in 2010.
A large portion of the new businesses fall into the micro business category which means they employ less than 9 people.
At the start of the Brexit process it was widely predicted that small and medium sized businesses may be negatively affected by the UKs withdrawal from the EU. However, data from LinkedIn has indicated a five per cent increase in the number of micro businesses since the Brexit vote.
Work life balance, flexibility and freedom are all reasons for entrepreneurs wanting to take the leap into self-employment. It’s also predicted that the number of micro businesses may rise even further due to people being laid off by larger companies who are looking to streamline their workforce as a result of Brexit.
Head of Businesscomparison.com Philip Brennan comments:
“SMEs are crucial to the economy and, it would appear that rather than being put off by Brexit many entrepreneurs are taking the opportunity to start-up their own enterprises. This is very encouraging. What we do need now is adequate support for these businesses both in terms of Government legislation and funding. Bank of England statistics have revealed that lending to Britain’s private sector businesses by the largest UK banks fell by £536 million from December to January. It’s crucial that these micro businesses have access to the funds they need to sustain them and to grow. We don’t fully know what the impact of Brexit will be so it’s important for SMEs to be in as strong a position as possible as the process continues.”