UK’s entrepreneurial ambitions stronger than ever as small business growth outpaces larger companies

The UK’s entrepreneurial ambitions are stronger than ever, as new analysis shows the number of small businesses created in the UK has grown every year in the past decade.

Small businesses are bucking the trend in which the number of medium and large businesses in the UK has plateaued in recent years.

Overall, the number of medium and large businesses in the UK has been flat in 2022. But the number of micro and small businesses in the UK has grown to 1.4 million in 2022, up 31,000 from the previous year. Growth in the number of medium and large companies in the UK has not yet returned to the highest levels seen in 2020.

Smaller UK companies are the least optimistic about their future performance, compared to medium and large businesses. Less than a quarter of companies with 10 employees or less expect their performance to increase in the next 12 months. Those with 10 to 49 employees were also pessimistic, with only a third expecting their performance to improve.

In comparison, 43% of companies with between 100 and 249 employees were optimistic about their future and expected their performance to pick up in the next 12 months.

Among all sectors, retailers were one of the least likely to post a strong performance in the past year, with only 15.3% saying they had seen their performance increase in the year to April 2023. This is despite the sector being the most people employed and having the largest turnover.

UK Head of Mastercard UK, which commissioned the research, Kelly Devine, said: “Small businesses are the UK’s economic powerhouse: they make up nearly 99% of all businesses, half of all business turnover, and employ two-thirds of the working population. No “There is a lack of entrepreneurial ambition in the UK, but it is worrying that their optimism is lagging behind big business. If we are to boost growth, it is imperative that big business and government support small businesses with skills, financing and policy so they can fulfill their potential.”

To help support small businesses and raise awareness of their contribution to local economies, Mastercard is hosting Thrive Street – a high street pop-up – in Manchester’s Arndale Center until Monday 12th June, giving small businesses free retail space in the city center and hosting master classes to help their businesses to grow and thrive.

Entrepreneur and activist Mary Portas said: “Small businesses are the lifeblood of our economy. They are innovative, creative and resilient. And despite the fact that it is one of the hardest times to be a small business owner, their numbers are increasing. passed.

‘Yes. We know it’s still an unpredictable world right now. But when you’re small and nimble, it’s an opportunity to outmaneuver the bigger players. Small business owners never fail to inspire me with their desire to do better, learn, and enrich themselves in the ever-evolving landscape of today’s business.”

Shadow Secretary for Business and Industry Bill Esterson MP said: “The UK’s true entrepreneurial spirit is embodied through its small businesses. As the world’s first manufacturing city it is only fitting that Manchester is now home to so many start-ups and it was great to talk to the companies on the street. MasterCard Thrive Street that adds a lot to our communities.

“It is essential that we do better to support entrepreneurs who want to grow and that is exactly what the Labor Party is doing through its partnership with businesses.”

Thrive Street is part of Mastercard’s Strive UKwhich helps small businesses by providing free access to coaching and advice geared to addressing business challenges, such as setting up an online store, managing cash flow, and creating a social media strategy.

Companies can also access experienced entrepreneurs and boards of directors to help them grow their businesses and enhance their resilience. Strive UK has supported and worked with over half a million companies to dateEnterprise stateAnddigital reinforcementAndBe the business ownerto provide support.