Micro-businesses are now a huge part of Nottinghamshire economy

New figures show that micro-businesses make up almost 90 per cent of enterprises in Nottinghamshire

Thursday, 11th October 2018, 1:23 pm
Updated Thursday, 11th October 2018, 1:28 pm

Micro-businesses make up almost 90% of enterprises in Nottinghamshire, figures show.

Office of National Statistics data shows that in March 2018, there were 23,810 active local micro-businesses – defined as employers of fewer than 10 people.

The compact companies made up 89 per cent of all the VAT or PAYE-registered enterprises in the area - the same as the UK-wide average.

Mirco businesses are a big part of Nottinghamshire's economy. Photo: PA/Joe Giddens

Across England, there were more than two million micro-businesses active in March 2018.

Out of the 23,810 local micro-businesses in Nottinghamshire, 87% had fewer than five employees.

The figures include VAT or PAYE-registered businesses based in the area, so they represent local independent businesses and head offices rather than branches of UK-wide chains.

Businesses with a turnover of above £85,000 must register for VAT, although a small number may choose to register voluntarily, and all employers must register for PAYE.

Self-employed people, who make up an estimated 76 per cent of all private sector businesses, are not counted in the figures.

Jordan Marshall, policy development manager at the Association of Independent Professionals and the Self Employed, said people in local communities continue value micro-businesses, like independent, family-run shops.”

But he added that the resources available for micro-businesses varies a lot depending on where they are located and that council-funded initiatives like co-working and networking spaces can help micro-business owners reduce costs.

He said: “The extent to which the council supports these spaces will have quite a big effect on independent businesses.”

Mr Marshall also said that advances in technology have made it easier for people to run micro-businesses from home.

He added: “Remote working means you can operate a business from anywhere.

“You’re not dependent on large employers, and you can have clients anywhere in the world.”