Small & Mighty

The UK has become a nation of micro businesses, according to a report by insurance group RSA.

The number of businesses with between 0 and 9 employees has increased by 1.4 million since 2000, a rise of 43%. This trend has been driven by the increase in zero employee businesses; the number of businesses with 0 employees increased by 21.4% and accounted for 75.3% of all micro businesses.

In comparison, the number of firms with 1 employee fell by 17.4% and businesses with 2-4 employees declined by 2.3% in the same period.

Growing pains

However the same research found that businesses of all sizes are having trouble growing. For example, between 2008 and 2011, 16.5% of medium-sized firms were reclassified as small businesses but only 3.6% went in the other direction and became a large business.


Those surveyed came back with the following reasons as to what the biggest barriers to growth are:

  • The tax system (44%)
  • Lack of bank lending (38%)
  • Cost of running a business (36%)
  • Red tape (36%)
  • Cash flow problems from late payments (35%)

If you are a Micro Business who is suffering from any of the above or you are looking to take on your  first employee, get in touch with us at Leonherman and we will work with you every step of the way contact us on 0161 249 5040 or email