● As of early 2023, there were 5.5 million private sector businesses in the UK.
● 99.9% are micro, small or medium sized, with 95% being micro-businesses (0–9 employees).
● Collectively these businesses employ 16.7 million people, which accounts for 6 in 10 of the total private sector employment.
Insight:
The UK economy is driven by micro and small businesses, which, despite that, are often underserved.
SME Insights Report 2023 (Simply Business)
An average of 12 hours per week is spent on admin tasks such as bookkeeping, tax, insurance, and compliance.
More than a quarter of small and medium businesses say this level of administration takes up valuable time and resources and negatively affects business productivity and growth
Insight summary:
Reducing admin and time spent finding important information frees up owners to focus on planning for growth, finding and looking after customers, and building resilience.
UK Small Business Index Q4 2022 (FSB)
Access to practical, tailored support remains patchy, particularly for those without in-house advisors.
Insight summary:
Business 111’s clear, aggregated guidance directly addresses this gap, reducing barriers to confident decision-making.
Areas of most concern for micro businesses (0–9 employees) and small businesses (10–49 employees) in the UK, based on recent surveys and data:
Micro Businesses (0–9 employees)
Financial security and cash flow
Most micro businesses operate on tight margins with limited cash reserves.
Over half have less than three months’ cash reserves, making them highly vulnerable to income shocks or delayed payments.
(Source: SME Finance Monitor, BVA BDRC, 2023)
Accessing clear, trusted information
Finding simple, jargon-free guidance on tax, legal obligations, and regulations remains a top concern.
4 in 10 say it’s difficult knowing where to find the right advice.
(Source: FSB UK Small Business Index, 2022)
Time pressures and admin burden
Micro business owners spend 10–12 hours a week on admin, diverting attention from customers and growth.
(Source: Simply Business, 2023)
Isolation in decision-making
6 in 10 feel isolated, and don’t have anyone to check decisions with, which increases stress and risk of mistakes.
(Source: Enterprise Nation & TSB, 2023)
Poor Payers
Many micro businesses struggle with cash flow because customers pay after the agreed date which makes it difficult to pay employees or suppliers on time.
(Source: Small Business Commissioner historical data)
Small Businesses (10–49 employees)
People and skills
Difficulty recruiting people with the right skills, especially in trades, care, hospitality, and digital roles.
(Source: FSB Small Business Index, 2023)
Wages
Rising minimum wage and wage inflation are squeezing profitability. Small businesses feel this more acutely than larger firms with bigger margins. (Source: FSB & BCC reports, 2023)
Regulation and compliance
Navigating employment law, health and safety, data protection, and sector-specific regulations is a persistent headache.
●mall businesses don’t usually have dedicated HR or compliance departments.
Rising costs
Increased energy costs, rent, insurance premiums, and supply chain price pressures are still reducing profitability.
(Source: BCC Quarterly Economic Survey, 2023)
Access to finance for growth
While micro businesses focus on survival, small businesses are more concerned about finding the funding to expand, invest in equipment, or adopt digital tools.
(Source: SME Finance Monitor, 2023)
Voice of Small Business Survey 2023 (FSB)
38% of small business owners work more that 50 hours weekly, often including evenings and weekends.
Many struggle to access services or support outside normal working hours.
Insight summary:
A 24/7 digital-first service meets owners’ real working patterns, rather than institutional office hours.
Small Business Barometer 2023 (Enterprise Nation & TSB)
6 in 10 micro business owners feel isolated in decision-making.
They cite a lack of trusted, immediate guidance to resolve everyday and strategic questions efficiently.
Insight summary:
Business 111 delivers timely clarity so that owners can act with confidence.
UK Business Digital Index 2023 (Lloyds Bank)
8 in 10 small businesses use digital tools for basic operations (e.g. banking, sales, customer contact).
However, 1 in 3 owners aren’t confident they know where to find trusted, unbiased business advice online.
Insight summary:
Business owners are familiar with digital options but guidance is fragmented. Business 111 consolidates navigation into a single, trusted platform.
SME Finance Monitor Q3 2023 (Bank of England/BVA BDRC)
More than half or small and medium businesses have less than three months’ cash reserves, often leaving them financially fragile.
Quick, informed decisions can make the difference between business survival and closure.
Insight summary:
Business 111 helps businesses gather the information they need to make decisions to protect cash flow and stability.
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