Micro businesses

Bad Advice Costs UK Small Businesses Billions

Bad Advice Costs UK Small Businesses Billions

Almost fifth (16%) of micro and small businesses lost a combined £6.4bn last year due to poor professional advice – £20,842 per business – with 19% of business owners said to have lost between £50,000 and £100,000 due to consultancy issues. The data, outlined in a report by Direct Line for Business, estimates that 320,000 enterprises lost money due to deficient advice from consultants and third party advisors. Poor advice was found to have negatively impacted small firms in a number of ways; 46% of companies were forced to let staff go, 34% had to take out credit, 30% were required to scale back, 28% said it almost caused failure and 16% lost clients. Insufficient IT advisors was named as the top issue by 44% of companies, followed by poor consultancy in management (34%), marketing (32%), ... »

‘Micro’ Firms Transforming The UK’s Business Landscape

Proportion of micro businesses rises 43% as amount of high growth firms drops by over 20% The number of ‘micro’ businesses has grown by 43% since 2000, with the UK now boasting 1.4 million companies with less than 10 employees. In contrast, the number of high growth firms has fallen by 20%, with zero-employee companies the fastest growing segment since the recession. The research, conducted by the RSA and titled Growing Pains, considers business owners’ views and public economic data. It found that as micro businesses have been the more dominant form of business, whereas high-growth companies – those achieving on average 20% annual growth in employment for three years – have been struggling. The research found that most mid-sized businesses fail to grow (79.9%) with more becoming small bus... »