{"id":1317,"date":"2024-06-28T12:42:20","date_gmt":"2024-06-28T12:42:20","guid":{"rendered":"https:\/\/omg.one\/blog\/?p=1317"},"modified":"2024-11-18T19:45:45","modified_gmt":"2024-11-18T19:45:45","slug":"uk-small-business-statistics","status":"publish","type":"post","link":"https:\/\/omg.one\/blog\/uk-small-business-statistics\/","title":{"rendered":"UK Small Business Statistics: Numbers, Trends and Insights"},"content":{"rendered":"\n<p>In almost any country small businesses are the backbone of the economy. They are an important part of the business landscape and crucial to the existence of the middle class in society.<\/p>\n\n\n\n<p>How many small businesses are in the United Kingdom? What is their average turnover? What are the most popular sectors? Answers to these and many other questions can be found in our analysis of the UK small business market.<\/p>\n\n\n\n<p>In this article, we have collected interesting statistics and facts that demonstrate the importance of this class of entrepreneurs.<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-7adc183d\"><h2 class=\"uagb-heading-text\">99% of businesses in the UK are SMEs<\/h2><\/div>\n\n\n\n<p>Did you know that 99 percent of businesses in the UK are SMEs? They bring jobs, wealth and tax income to the country.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>According to the Business population estimates for the UK and regions 2023, there are 5.51 million SMEs, which make up 99.9% of UK private sector businesses.&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1137\" height=\"709\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/number_of_smb_uk.jpg\" alt=\"Number of small businesses in the UK\" class=\"wp-image-1331\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/number_of_smb_uk.jpg 1137w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number_of_smb_uk-300x187.jpg 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number_of_smb_uk-1024x639.jpg 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number_of_smb_uk-768x479.jpg 768w\" sizes=\"(max-width: 1137px) 100vw, 1137px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-21aecef0\"><h2 class=\"uagb-heading-text\">Average turnover of micro and small businesses <\/h2><\/div>\n\n\n\n<p>Micro businesses with 1-9 employees reported an average turnover of \u00a3446,872 per year, while small companies with 10 or more employees reported an average turnover of \u00a32,802,670 in 2022.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1440\" height=\"544\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-turnover.png\" alt=\"UK small business turnover statistics\" class=\"wp-image-1319\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-turnover.png 1440w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-turnover-300x113.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-turnover-1024x387.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-turnover-768x290.png 768w\" sizes=\"(max-width: 1440px) 100vw, 1440px\" \/><figcaption class=\"wp-element-caption\"><em>How much do small businesses in the United Kingdom earn a year? Source: <a href=\"https:\/\/www.nimblefins.co.uk\/business-insurance\/small-business-insurance-uk\/small-business-statistics-uk\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Nimblefins<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">53% of UK business turnover is generated by SMEs<\/h2>\n\n\n\n<p>SMEs account for over half (53%) of UK business turnover and three fifths (61%) of private sector employment.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"686\" height=\"818\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/best-uk-cities-for-biz.jpg\" alt=\"Best UK cities for business\" class=\"wp-image-1320\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/best-uk-cities-for-biz.jpg 686w, https:\/\/omg.one\/blog\/wp-content\/uploads\/best-uk-cities-for-biz-252x300.jpg 252w\" sizes=\"(max-width: 686px) 100vw, 686px\" \/><figcaption class=\"wp-element-caption\"><em>The Top-10 best UK cities to start a small business, source: <a href=\"https:\/\/bionic.co.uk\/blog\/how-to-start-a-small-business\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bionik.co.ua<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Small business number is growing<\/h2>\n\n\n\n<p>The growth in the UK&#8217;s small business population has been driven by a 68% increase in very small businesses with no employees.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1388\" height=\"1066\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population.png\" alt=\"Chart by Merchant Savvy\" class=\"wp-image-1323\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population.png 1388w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-300x230.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1024x786.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-768x590.png 768w\" sizes=\"(max-width: 1388px) 100vw, 1388px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Micro-business survival rate<\/h2>\n\n\n\n<p>According to the UK government, micro-businesses with fewer than 9 employees closed at the highest rate &#8211; 11.3%. Larger small businesses have a better survival rate, with only 3.4% closing annually.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>SME employers cited market competition (46%), red tape (43%) and taxation (40%) as the main barriers to growth.<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">How many SMEs in the UK?<\/h2>\n\n\n\n<p>The number of UK SMEs was highest at the beginning of 2020:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1662\" height=\"990\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes.png\" alt=\"UK Small Business Statistics: Numbers, Trends and Insights\" class=\"wp-image-1321\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes.png 1662w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes-300x179.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes-1024x610.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes-768x457.png 768w, https:\/\/omg.one\/blog\/wp-content\/uploads\/number-of-smes-1536x915.png 1536w\" sizes=\"(max-width: 1662px) 100vw, 1662px\" \/><figcaption class=\"wp-element-caption\"><em>Number of SMEs in the UK, 2014-2023, chart: <a href=\"https:\/\/www.finder.com\/uk\/business-banking\/small-business-statistics\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">FinderUK<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">UK SMEs by regions<\/h2>\n\n\n\n<p>London is the region with the most SMEs in the UK.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1678\" height=\"1122\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions.png\" alt=\"Small business in the UK by regions\" class=\"wp-image-1325\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions.png 1678w, https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions-300x201.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions-1024x685.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions-768x514.png 768w, https:\/\/omg.one\/blog\/wp-content\/uploads\/sme-by-regions-1536x1027.png 1536w\" sizes=\"(max-width: 1678px) 100vw, 1678px\" \/><figcaption class=\"wp-element-caption\"><em>Number of SMEs by UK region, 2023, source: Finder.com<\/em><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">20% of SMEs choose to work remotely<\/h2>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>By the end of May 2024, about one in five (19%) companies said they either use or intend to use increased home work as a permanent business model in the future.<\/p>\n<cite><em>Business Insights and Conditions Survey (BICS) Team<\/em><\/cite><\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1388\" height=\"1066\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1.png\" alt=\"Businesses population in the United Kingdom\" class=\"wp-image-1326\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1.png 1388w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1-300x230.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1-1024x786.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-population-1-768x590.png 768w\" sizes=\"(max-width: 1388px) 100vw, 1388px\" \/><figcaption class=\"wp-element-caption\"><em>UK Businesses population, employment &amp; turnover by business size, source: <a href=\"https:\/\/www.merchantsavvy.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Merchant Savvy<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Business Openings vs Business Closures<\/h2>\n\n\n\n<p>During these 2 years, 94,985 more businesses closed than were created. New business openings remained relatively low in the third quarter of 2023, but there were nearly 10,000 more openings than closings during this period.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1126\" height=\"1042\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-open-closed.png\" alt=\"New businesses vs business clothures in Great Britain\" class=\"wp-image-1327\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-open-closed.png 1126w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-open-closed-300x278.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-open-closed-1024x948.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-open-closed-768x711.png 768w\" sizes=\"(max-width: 1126px) 100vw, 1126px\" \/><figcaption class=\"wp-element-caption\"><em>UK Company Formations\/Death (Q1 2017 &#8211; Q3 2023), source: Merchant Savvy<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Gender distribution in business management<\/h2>\n\n\n\n<p>According to Forbes, 24% of SMEs in the UK are defined as &#8220;equally run&#8221;, with an equal number of men and women on the management team.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Business numbers per capita in the UK<\/h2>\n\n\n\n<p>There were 1.0 million businesses in London in January 2023, equal to 1,477 businesses per 10,000 resident adults. <em>\u2014 Parliament.uk<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How many businesses are led by women?<\/h2>\n\n\n\n<p>According to the 2023 Rose Review Progress Report, just over 20 percent of all new businesses were led by women in 2022, up from 17 percent in 2018. \u2014 <a href=\"https:\/\/www.natwest.com\/business\/insights\/business-management\/leadership-and-development\/rose-review-2023-new-initiatives-to-build-thriving-businesses.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">NatWest<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UK Business birth rates by regions<\/h2>\n\n\n\n<p>In 2022, London, the North East, and Wales and Northern Ireland were the only regions to have more business births than business deaths.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1392\" height=\"844\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-births-deads.png\" alt=\"Small business births and deads\" class=\"wp-image-1328\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-births-deads.png 1392w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-births-deads-300x182.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-births-deads-1024x621.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-births-deads-768x466.png 768w\" sizes=\"(max-width: 1392px) 100vw, 1392px\" \/><figcaption class=\"wp-element-caption\"><em>Business births and deaths by region and country, source: <a href=\"https:\/\/researchbriefings.files.parliament.uk\/documents\/SN06152\/SN06152.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Parliament.uk<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">SMEs raised \u00a34.6 billion in 2023<\/h2>\n\n\n\n<p>In the first half of 2023, the total amount of capital raised by small business owners was \u00a34.6 billion, a sharp 70% drop from the \u00a315.3 billion raised in the same period in 2022. \u2014 <a href=\"https:\/\/startups.co.uk\/analysis\/small-business-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Startups.co.uk<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">24% of SMEs nervous about the future<\/h2>\n\n\n\n<p>UK businesses and entrepreneurs are feeling nervous about the future, according to the Startups.co.uk survey, which revealed that 24% of respondents see economic instability as their biggest concern.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The most common legal form of SMEs<\/h2>\n\n\n\n<p>There are three main legal forms of businesses in the private sector; sole proprietorships, ordinary partnerships, and companies. Sole proprietorships are the most common legal form:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1458\" height=\"906\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-legal-forms.png\" alt=\"Most common business legal forms in the UK\" class=\"wp-image-1329\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-legal-forms.png 1458w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-legal-forms-300x186.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-legal-forms-1024x636.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-legal-forms-768x477.png 768w\" sizes=\"(max-width: 1458px) 100vw, 1458px\" \/><figcaption class=\"wp-element-caption\"><em>Number of UK private sector businesses with and without employees, by legal status (early 2023, source: <a href=\"https:\/\/www.gov.uk\/government\/statistics\/business-population-estimates-2023\/business-population-estimates-for-the-uk-and-regions-2023-statistical-release\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">gov.uk<\/a> <\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Number of SMEs per economic sector<\/h2>\n\n\n\n<p>The number of businesses considered to be SMEs active in each sector of the UK economy:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1938\" height=\"1322\" src=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector.png\" alt=\"Business in the UK by sectors\" class=\"wp-image-1330\" srcset=\"https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector.png 1938w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector-300x205.png 300w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector-1024x699.png 1024w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector-768x524.png 768w, https:\/\/omg.one\/blog\/wp-content\/uploads\/smb-by-sector-1536x1048.png 1536w\" sizes=\"(max-width: 1938px) 100vw, 1938px\" \/><figcaption class=\"wp-element-caption\"><em>Number of SMEs per UK Economic Sector, image by <a href=\"https:\/\/www.forbes.com\/uk\/advisor\/business\/small-business-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Forbes<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>We hope you found this article useful! Feel free to share it on social media or send a link to your friends.<\/p>\n\n\n\n<p>If you are looking for a reliable tool for your business operations, try Omega! We offer an <a href=\"https:\/\/omg.one\/business-account\">all-in-one business account<\/a> for online operations and global development.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In almost any country small businesses are the backbone of the economy. They are an important part of the business landscape and crucial to the existence of the middle class in society. How many small businesses are in the United Kingdom? What is their average turnover? What are the most&#8230;<\/p>\n","protected":false},"author":7,"featured_media":1318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-1317","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK Small Business Statistics: Numbers, Trends and Insights<\/title>\n<meta name=\"description\" content=\"How many small businesses are in the United Kingdom? What is their average turnover? 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