A hotbed for microbusinesses

A hotbed for microbusinesses

The South East of England and London is a hotbed for micro entrepreneurship, with over 700,000 microbusinesses located in the region, according to new research.

New analysis from Direct Line for Business reveals there are over two million microbusinesses with fewer than nine employees across the UK.

London in particular is bucking the trend with more than 400,000 microbusinesses, accounting for 18% of the UK total. This means that London has 47 microbusinesses per 1,000 people – the highest ratio in the UK.

The capital is followed by the South East (337,385 microbusinesses) and the East of England (216,700 microbusinesses) as the UK’s microbusinesses hotspots, which have 38 and 36 microbusinesses for every 1,000 people respectively.

Nick Breton, head of Direct Line for Business, said: “Britain is a nation of entrepreneurs, as highlighted by the fact that there are nearly 34 microbusinesses for every 1,000 people in the UK. 

“These enterprises account for 89% 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 microbusinesses, as families in these areas are often seeking to gain extra sources of income by turning their hobbies into professions.”

Regional breakdowns of the UK’s microbusinesses:

Region

Number of microbusinesses

Share of the UK’s microbusinesses

Microbusinesses per 1,000 people

London

400,710

18.4%

46.9

South East

337,385

15.5%

38.0

East of England

216,700

10.0%

36.0

North West

207,190

9.5%

29.0

South West

195,890

9.0%

36.1

West Midlands

168,905

7.8%

29.6

Yorkshire and The Humber

150,585

6.9%

28.1

Scotland

147,300

6.8%

27.5

East Midlands

145,200

6.7%

31.3

Wales

86,840

4.0%

28.1

Northern Ireland

59,600

2.7%

32.4

North East

57,050

2.6%

21.8

UK Total

2,173,355

100%

33.6

Source: Analysis by Direct Line for Business