Does size matter? Or is there ‘safety’ in numbers?
DTI (Department of Trade and Industry UK) reports that in 2005 4.3 million businesses were active in the UK (an increase of 1.4% on 2004), total employing 22 million people and with a combined annual £2.400 billion turnover
99.3% of UK businesses are labelled ‘small’: 0 – 49 employees; employing 46.8% of the total ‘working-force’ and accounting for 36.4 % of turnover.
In real numbers that translates into:
In 2005 there were 4,269,900 ‘small’ businesses giving work to 10,296,000 people and turning over £873,600,000,000.
Going deeper into the ‘small’ business category:
3,200,000 businesses have no employees at all (sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director) turning over £190,000,000,000 in total (= average of £59,375 per business).
Imagine selling a £ 1.00 product or service (with a 10% net profit margin) to all smallest businesses once a year.