Micro firms are seeing real growth
THOUSANDS OF NEW SMALL BUSINESSES SPRANG UP LAST YEAR IN MANCHESTER
THOUSANDS of new micro-businesses sprang up last year in Greater Manchester, figures show.
Between March 2017-18 the number of local micro-businesses – defined as employers of fewer than 10 people – increased from 89,195 last year to 93,875 this year.
That’s an increase of five per cent bucking the UK-wide trend, where the number of micro-businesses has fractionally decreased.
Office of National Statistics data shows that the compact companies made up 89 per cent of all the VAT or PAYE-registered businesses in Greater Manchester. That’s the same as the UK average.
Across England, there were more than two million micro-businesses active in March 2018.
Out of the 93,875 local micro-businesses in Greater Manchester, 87pc had fewer than five employees.
Tim Vorley, Professor of Entrepreneurship at the University of Sheffield, says that a large increase in the number of microbusinesses could be down to a push of start-up initiatives in local areas.
He says a spike in numbers could also be due to a large employer moving out of the area, reducing employment opportunities and incentivising locals to start their own enterprises.
According to Professor Vorley, a rise in micro-business numbers could ‘go both ways’ for the local economy. He said: “It could demonstrate vibrancy within the economy and a strong local entrepreneurial culture. “On the flip side, how many of these businesses will go on to fail after they’ve been created?” He added: “We need to look at business survival rates, and focus on ensuring longevity and growth.” 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. Jordan Marshall, policy development manager at the Association of Independent Professionals and the Self Employed, said: “People in local communities really value micro-businesses, like independent, family-run shops.” But he said that the resources available for micro-businesses varies a lot depending on where they are located. He said 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 microbusinesses from home. He said: “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.” Jordan Marshall