Micro-businesses are the engine of the UK economy

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Posted 30-03-22

Proposed by come on daddy

Originally posted on Venture Forward by GoDaddy

Guest post by Ben Law, VP, Head of UK & Ireland at GoDaddy

Micro-enterprises are the engine of the British economy. When they thrive, we all thrive.

SO WHY DO WE KNOW SO LITTLE ABOUT THEM?

come on daddy is the world’s largest service platform for entrepreneurs worldwide. We’re on a mission to empower our global community of over 20 million customers – and entrepreneurs around the world – by giving them all the help and tools they need to grow online. We know that micro-enterprises play a crucial economic and social role. At the start of the pandemic, in April 2020, GoDaddy launched Venture Forward – a research project examining the impact of micro-enterprises in the United States of America.

The results were groundbreaking and highlighted the support the people behind microenterprises need. We wanted to build on the work done in the US and see what things were like in Britain. GoDaddy worked with academics from Kent Business School to count, categorize and analyze the economic impact of these companies and learn more about the role of micro-enterprises in Great Britain.

And when we say “micro-businesses”, we mean those that employ less than 10 people and which represent 96% of British businesses.

GoDaddy is the home of everyday entrepreneurs, so we’re excited to launch our Venture Forward UK study and use this empirical study to affirm what we have always believed – the issue of micro-enterprises.

So the question is, do they matter? The simple answer is yes. There are 5.3 million micro businesses in the UK and represent 96% of all businesses. They are the engine of the UK economy – when they thrive, we all do.

Additionally, GoDaddy’s Venture Forward study shows that micro-enterprises have the power to help level up disadvantaged areas. More than half of all micro businesses have a turnover of over £25,000 a year and three quarters employ at least one other person. Simply put, the more micro-enterprises there are in a community, the better the job prospects and finances of the people who live there.

Following the changes, and the disruptions that we have all experienced since the start of the pandemic, a new breed of everyday entrepreneurs is beginning to emerge. The shift to e-commerce (selling online), when people could not physically open their businesses, and the opportunities offered by the second digital revolution, mean that people from outside London, disadvantaged communities and ethnic groups minority groups were able to set up businesses quickly and easily. But Britain is still dominated by a north-south divide and there is still a long way to go to resolve this problem.

The top three regions where entrepreneurs reside are the same before and after March 2020: London (21.7% / 22.6%), the South East (18.5% / 17.0%) and the Southwest (10.2% / 9.8%). When ranking every constituency in the UK for business density, the top 14 areas are all in London

The cities of London and Westminster constituency leads with 13.33 micro businesses per 100 people, Hackney South and Shoreditch are second with 5.41, and Islington South and Finsbury are third with 4.99.

Of the 50 constituencies with the highest business densities, only six are not in London, in the South East or South West. These are: Manchester Central (1.91), Glasgow Central (1.80), Hazel Grove (1.75), Solihull (1.71), Edinburgh North and Leith (1.67) and Birmingham Ladywood (1.59 )

The three constituencies with the lowest business densities are Merthyr Tydfil and Rhymney in Wales (0.20), Workington in Cumbria (0.21) and Washington and Sunderland West (0.23)

HERE ARE SOME OF THE MAIN FINDINGS OF OUR RESEARCH:

  • The percentage of start-up owners under the age of 35 has more than doubled since March 2020.
  • The proportion of 18-24 year olds rose from just 1.7% before the pandemic to 8.6% in the two years following the Covid-19 epidemic.
  • Encouragingly, we can also show that entrepreneurs have diversified. the proportion of minority communities rose from 13.2% to 15.1%. while the percentage of female owners of micro-enterprises increased from 32% (before March 2020) to 39.8%
  • The representation of business owners from minority ethnic groups is also gradually increasing. Black founders represent 5.4% of businesses before the pandemic and 6.6% among those created after March 2020. The corresponding figures for Asian entrepreneurs are 10.1% before the pandemic and 11.9% after its start. .
  • GoDaddy exists to make sure everyone can succeed in business. GoDaddy has a history of helping people achieve their business dreams. We helped businesses’ online presence thrive in the aftermath of the 2008 financial crisis and we’ll be there to empower the new boom of everyday entrepreneurs emerging from the global pandemic. This one is easy. BUY LOCAL! Local bank, promote the small businesses you love!

And we share our findings from Venture Forward to help policymakers, microbusiness owners, and the public better understand what microbusinesses need to thrive, and when they thrive, the positive impact on their communities benefits everyone.

GoDaddy is the home of everyday entrepreneurs, and we believe in making business more inclusive and creating opportunities for everyone to succeed, no matter where they are in the country. Through Venture Forward, we will share research findings with policymakers to help improve knowledge of the microenterprise landscape.

We hope to help create opportunities for microbusiness owners across the country to thrive, while their communities become more prosperous.

After all, micro-enterprises are the engine of the British economy. When they thrive, we all thrive.

To learn more about the data and understand what is happening in your constituency, you can explore the full data set here.

We’d love to hear your thoughts and learn more about what’s happening in your area. Send us a message!

Find out more about the UK Microenterprise Study

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come on daddy

GoDaddy empowers everyday entrepreneurs around the world to provide all the help and tools they need to succeed online. GoDaddy is where people come to name their idea, build a professional website, attract customers, sell their products and services, and manage their work. Our mission is to give our clients the tools, ideas and people to turn their ideas and personal initiatives into success. To learn more about the company, visit www.GoDaddy.com.

About GoDaddy For Good

GoDaddy is focused on creating more inclusive opportunities for everyone in the communities where we work, live and play around the world. We rally around inclusive entrepreneurship and other critical local needs that enable people to succeed through philanthropic and in-kind giving, volunteerism, strategic partnerships and advocacy.

Empower by GoDaddy

Empower by GoDaddy is GoDaddy’s global community and philanthropic program that provides entrepreneurs in underserved communities with training, tools, and peer networks to accelerate their journeys. GoDaddy supports entrepreneurs in underserved communities by building their confidence and skills to boost their small business’ digital presence. Entrepreneurs engage in personalized learning experiences, work 1-1 with GoDaddy volunteer coaches and local mentors, and have access to comprehensive services, in-kind products and networks that drive their small business success .

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