the business ladder

In the last 5 years, the number of entrepreneurs starting up small businesses in the UK has increased by 117%, creating an overall 41% increase in the total number of companies in the UK.

Research by data expert Experian indicates that small businesses with 1-2 employees have managed to maintain the lowest insolvency rate over the last 5 years compared to other types of businesses.

Managing Director of Experian UK & Ireland, Charlotte Hogg, commented: “Our analysis reveals that the UK’s smallest businesses have been surprisingly resilient during the economic downturn and have also seen their population skyrocket in the last five years.”

Ms Hogg explained that the recession and economic climate was an underlying factor in the increase of 'micro' businesses. She suggested that many start-ups were the result of altered circumstances where people found themselves unemployed and having to look for alternatives.

The analysis of over 4.3 million UK directors showed how the increase in the number of entrepreneurs was being mostly led by young, male entrepreneurs. However, at the same time, there was also a significant rise in the amount of female entrepreneurs – up 72% over the last five years.

The highest concentration of 1-2 person businesses is found in London (currently 31,449) having seen a 105% growth during the last 5 years. The UK's second city, Birmingham, follows up in 2nd where there are at present 10,207 micro firms (a growth of 188%).

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