Do you know what a micro business is? And, more importantly, do you know if you're running one?
According to the UK Gov, micro businesses account for 96% of all privately-owned businesses in the UK. That's around 5.7 million businesses, estimated to be employing 9.1 million people.
Micro businesses are often referred to as the 'backbone of our economy'. So much so, that not even a pandemic could put a stop to their growth; with many people, finding themselves subject to job losses, setting up their own micro-venture.
But with such large numbers involved, what exactly is a micro business?
Firstly, it is defined by the number of people who work in the business. Secondly, it is characterised by annual turnover. Furthermore, the figure on the balance sheet is taken into consideration.
In the case of a micro business, the above equates to 10 employees or less. An annual turnover of no more than £632,000. And £316,000, or less, on the balance sheet.
Micro businesses are a vital part of a growing economy. Likewise, they have huge importance to local communities. They are our cleaners, plumbers, beauticians, electricians, gardeners... Chances are if we're looking for a skilled trade or home service provider, it's a micro-business we'll be contacting.
So what kinds of business make up the micro business landscape?
Probably the first thing many people think of when we use the term micro business. A person who is self-employed runs their business for themselves. As a result, they are responsible for it's successes and failures.
A self-employed business may be a person's primary source of income. However, it could be a secondary source. For example, working for an employer during the week and running their own business at the weekend.
Being self-employed can be an attractive proposition. You can set your own hours, working around your personal life and other commitments. In addition, you have total creative control over the direction your business takes. According to the ONS, as of May 2021, there were 4.2 million self-employed people in the UK.
Technology is moving fast! It is estimated that during the first three months of lockdown the UK achieved three years' worth of innovation.
With this technology, more and more people are able to stay connected. As a result, it has become easier to start a business at home. From social media entrepreneurs to businesses on sites like Etsy. There are many benefits to running a home-based business. Firstly, it offers a flexible working space. Secondly, it reduces overheads and costs. In addition, it allows the owner to grow the business at their own pace.
'... & Son, since the year dot'. Defined as any business involving two or more members of the same family, with major ownership. They are one of the oldest ways in which to structure a business.
Family-run businesses cross all sectors. From skilled trades to hospitality, to retail. However, working with a family can have its ups and downs. It isn't something to be entered into without careful thought.
A young company, right at the start of it's life. Some may have initial funding. Others may actively raise investment to expand their services, products, or team. Some start-ups grow bigger as their business gains success. Others may prefer to stay small. Every start-up is different!
Micro businesses are often grouped together. However, this does not do them justice. They are a varied part of our economy and, thankfully, are very clearly here to stay.
Did you know, jobmate supports all types of micro business?
Set up with the sole purpose of helping micro businesses secure their future success. Today, micro businesses have to compete with larger organisations. They need to maintain an image, meet customer expectations, and keep up with the ever-changing face of legal compliance.
At jobmate we're here to help level the playing field between the large and small. Our mission is to remove the hassle and stress of business administration, job, and employee management, so micro businesses can focus on what they do best.
Discover more about jobmate, and how we help and support the micro business owner at jobmate.cloud