The number of micro businesses in the UK has grown by 43% since 2000, a report by insurance group RSA has found.
Micro firms are businesses employing between 0 and 9 workers.
The research found:
However, the study also found that the number of high-growth businesses has fallen by a fifth since 2005. 'High-growth' means an average 20% annual growth in employment over 3 consecutive years.
The study reveals:
David Swigciski, SME trading director at RSA, said:
"The UK has long been regarded as a great place to start a business, but the recent recession has had a significant impact on the business economy, with companies becoming smaller in size. Unfortunately, continuing along this road isn't an option if we want a sustained recovery from the economic downturn.
"Getting back on track and strengthening the economic recovery is a case of redressing the balance between start-ups and growth. This can be done by encouraging investment in growth and helping - as well as ensuring - SMEs reach their full growth potential."
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