Small Businesses in the UK - Key Statistics

A major report published by Warwick Business School entitled "Finance for Small and Medium-Sized Enterprises" reveals some fascinating statistics relating to the small business world in the UK.

In early 2004, a consortium of 19 public and private sector organisations commissioned the Business School to undertake a study into SME finances. This is the first representative survey of SMEs in the UK to offer a close analysis of businesses (with fewer than 250 employees), their main owners and access to external finance.

The full executive summary of results can be downloaded in PDF format here.

Size of Small Businesses in the UK

• 2,200,000 businesses have no employees (about 61% of SMEs).

• 1,450,000 businesses have an annual turnover of less than £50,000 of SMEs).

• 1,350,000 businesses have less than £10,000 worth of assets.

Small Businesses by Region

• 38% of SMEs are located in London and the South East (1,400,000 businesses).

• 87% of SMEs are located in England (3,150,000 businesses).

• 5% are located in Scotland.

• 5% are located in Wales.

• 3% are located in Northern Ireland.

By Legal Entity Type

• Almost 2 in 3 businesses are sole traders (2,400,000 businesses)

• Less than 1 in 4 businesses are limited liability companies (870,000 businesses)

• About 1 in 10 businesses are partnerships (including limited liability partnerships).

By Business Age

• The majority of businesses (51%) are aged more than 15 years (1,900,000 businesses).

• About 7% of SMEs are start-ups (aged less than 2 years) (250,000 businesses).

By growth rate:

• About 11% of businesses (320,000 businesses) are high growth businesses, having an average turnover growth of 30%, or more, per annum over a period going back up to 3 years.

By ethnicity:

• 93% of businesses are majority white owned (3,400,000 businesses).

• About 7% of businesses are majority owned by individuals from ethnic minority backgrounds (220,000 businesses).

By gender:

• 75% of businesses are majority owned by males (about 2,700,000 businesses).

• 25% of businesses are majority owned by females (just over 900,000 businesses).