The Impact of Britain's Micro Business Sector for all of us.

I so often start any post, blog or interview with a definition of micro business so that we’re clear about who and what we're talking about. Micro businesses are small businesses that have 0-9 employees. For the purposes of this article I’m also including sole traders and the self employed, although some figures don’t. In fact small business in the UK is defined as those enterprises with 10-49 employees.

What might be more surprising to some of you is that micros make up 96% of all the UK’s private business and accounts for about 5.2 million businesses and sole traders, making up around 24% of total business turnover. I think I’ve made the case early on what this sector of business has in terms of significance despite its lack of profile.

Over and above the headline figures however, there are multiple impacts and potential positives that benefit us all, whether we’re a micro owner or not. Exploring what the positive consequences of understanding, nurturing and supporting micro enterprise could go some significant way to unlocking Britain’s business potential as well as supporting the evolution of a demand for a new kind of working environment, two name a couple of business hot topics just now.

So what are these impacts and how do we know? Why should we care about tiny businesses over an above the obvious joys of an independent book shop or cafe?

1. Micro businesses can grow. So obvious, but in a world the fetishises big, it’s easy to forget that the vast majority of businesses start micro in size. Often founded by those who are already spotting a gap in the market, have outgrown the constraints of limited thinking in a big corporate or public sector role or who have an innovative outlook as a core setting, micro business often starts quite left of field, offering new solutions, better purpose or an agility that allows the flicker of innovation to grow. The figures, however, show us that support for micro business in the form of high quality resources, training & mentoring is scarce and often unaffordable. Founders will have buckets of knowledge and skills of course, but may not have run a business alone before, needing leadership support, trusted & experienced feedback and a new kind of personal resilience as they travel the inevitably rocky road of those early days. What we know from research is that leaders and founders achieve more and for longer if they have excellent peer support, community and quick access to valuable ideas, training & mentoring or coaching to develop thinking and help navigate their rapidly evolving steps. Imagine the impact for a national GDP if that help was universal.

2. Micro businesses can offer great working environments. Founders come in all forms of course, (& now for some sweeping statements to make a point) but are likely to have either experienced workplaces that haven’t let them reach their full potential, a work life that has drastically changed through ill health, redundancy or the inevitable post covid upheaval or are young. In my experience, this means that they are creating working patterns, environments and cultures that are way ahead of their larger, more mature counterparts. Understanding the real value of building teams of humans, with all the needs they have to function well, is often a priority as micro founders start to establish a little growth. Even for those that decide to stay as a one person business, while working with outsourced help, are ensuring that growth in turnover/profits/impact doesn’t come at the price of their own physical or mental health. This is revolutionary for society and for productivity and can’t be sidelined as a ‘nice to have’ anymore. Imagine what properly nurturing this kind of business could do in terms of revolutionising the UK workforce experience.

3. Micros can lead the sustainable way. Through necessity or desire, micros are efficient, focussed and avoid waste at all costs. Without the budget for mass marketing, they also know that standing out & delivering appreciable value, will have to come from some other source and that’s so often sustainability and purpose. With the luxury of starting a business from scratch, sustainable practices and clear missions can be built in from day one, developing strategy that places purpose, community & people above or alongside profit. As large businesses sometimes struggle with implementing rigorous sustainable practice in the face of rigid operational structures, micros are able to harness their natural agility to ensure that they lead the pack in terms of a truly impactful quadruple bottom line approach. Profit yes, people, definitely, planet of course and then a purpose that really matters to the founder, their community and customers.

4. Micros are community embedded. Regardless of whether a micro wants to stay local and small or wants to become an international superstar, they’re almost always embedded in community first. They will outsource or employ local people, maybe start out in a local setting or venue and will almost certainly have a community of supporters around them. This boot strapped, community led approach underpins, what are often, values based micros that may give back, provide flexible employment or breathe life into a high street or area. The impact of such an approach helps develop a different kind of business that can keep hold of their values throughout their growth trajectory, helping lead the way for perhaps an enriched business community as a whole. The impact for us all is that we have communities, city centres, high streets or rural outposts that thrive.

If you're a micro business owner looking for professional, trusted and high quality support in easy access, bite sized chunks, alongside a vibrant community of friendly folk that share your journey, then hop over to Simply Club and find out what we do and why we do it.