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THE STATE OF MICRO BUSINESS IN THE UK

According to the latest business statistics published by the UK parliament, micro-businesses accounted for 96 percent of all business in 2020 with 21 percent turnover which is second only to large corporate entities. Considering that companies with 9 employees or less formulate around 33 percent of the national employment rate, micro-business solutions such as online retail stores, small farmers, independent mechanics, or jewelry makers represent one of the largest growth opportunities on a local scale.

The UK aspiration towards micro business

According to a survey published last year, around 64 percent of the UK workforce aspires for their own business. The largest part of this group are young people between the age of 18 to 24 which shows that the new generation of Brits is more open to establishing their business path than living a 9 to 5 lifestyle. London, Yorkshire, and West Midlands represent the most hospitable regions for people who wish to start their businesses, although smaller cities and less developed regions also have their appeal and a significant number of micro-business startups which is mainly due to excellent internet and motorway infrastructure in the UK.

One of the most impactful factors for such a vast number of people interested in starting their own business is because they are not happy with their current jobs, according to the survey. However, Brexit is a strong negative influence, with 1 out of 10 survey participants confessing that the UK’s exit from the EU is a demotivating factor.

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Local online search contributes to micro-business growth in the UK

Most micro-business solutions reach consumers thanks to local search, which means that business owners have to invest heavily in local search engine optimization in order to stay competitive. Luckily, the advent of digital marketing allows numerous tools that enhance the number of online visitors, which is the key factor for the success of micro-business enterprises. It’s reasonable to assume that micro-business owners don’t always have a large marketing budget which makes the research for tips on enhancing website traffic and online visibility imperative.

Some of the most popular digital marketing techniques that micro-business owners use are blog posts, targeted ads, and diverse social media content aimed at engaging the audience and enhancing the number of new visitors to their website. Of course, improving local SEO rank stays at the top of all marketing endeavors, as it allows interaction with the most relevant user group.

Leeds offers a lucrative startup environment

Micro and small business environment is fragile and requires delicate planning. More than half of micro business endeavors suffer collapse, therefore it’s important to understand what makes a good startup environment.

Some of the most notable factors for the success of micro business include:

  • Access to educated professionals
  • Available infrastructure
  • Access to funding and local support
  • Local development strategy
  • The overall quality of life

Considering all these requirements, Leeds represents the most lucrative micro-business startup environment with around a 43 percent business survival rate, which is the second-highest rate in the UK. Although Coventry offers a 44 percent business survival rate, Leeds has the upper hand in terms of available infrastructure, economic diversity, access to educated professionals, and financial incentives. The city is also well connected with major cities across the UK thanks to a well-developed network of motorways and access to the international airport.

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The small and micro business environment in the UK is getting better by the day with both large and less developed regions in the country competing at a leveled rate. Thanks to the advent of digital marketing and a wide range of online solutions for small businesses, British entrepreneurs can look forward to the growth of the private sector as their success depends solely on their efforts.

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