Many UK micro businesses are still not counted in national statistics; let's work together to change this says Tina Boden, micro business specialist and co-founder of Enterprise Rockers.
If you are a regular follower of media opinion then, like me, you will realise there is a constant rotation of many subjects discussed in the press, online or offline, and on TV and radio. These headline topics are rolled out, given an airing and then put away for a few months before they are released again to look at the same subject from a different angle. 'Women In Business' is high on that rotating list – women in the board room, women starting up in business, women succeeding in business, women not succeeding in business – these subjects have all been discussed at length and will no doubt continue to be debated, dissected and deliberated for years to come.
It was no surprise therefore to read an article by David Prosser (@davidprosserind) in The Independent at the end of last month that highlighted the increase of women on FTSE 100 Boards. David did mention however that many of these ladies are at Non-Executive Director level & do not have direct control of the operational reins; I question whether they are being listened to or paid lip service to, but that is a conversation for another time.
The Independent article goes on to discuss women starting up in business and how the percentage of those interested in setting out on the business path are far fewer than their counterparts in the USA. Apparently only 8% of women in the UK are interested in starting their own business compared to 13% of men and if women started businesses at the same rate as men we would have 150,000 more businesses in Britain.
But do we have 150K more businesses in the UK?
The stats used in David's article are not inaccurate but they are skewed. If you read not just this article but so many others, figures and percentages provided will be linked to Government, banks or growth specialist research and none of these count 'Invisible Businesses', many of which are run by women though let's not forget the men here as well!As a micro business specialist and regular voice and campaigner for those that employ between 0 & 9, I am very aware of the number of businesses that exist across the fall below the Government measuring stick of:
- V.A.T. payment
- Employment of staff
- Ltd company registration
This does not mean that they are not paying tax or national insurance, though I appreciate not everyone registers the fact they are trading with HMRC as they should. What it does mean is they are getting on with what they are doing and not being recognised by the British Government for their work if they are not a Limited company, not employing staff or are not registered for V.A.T. – How many of you fall into that category?
For sometime I have worked closely with the Local Enterprise Partnership (LEP) that covers my home town of Scarborough on the Yorkshire Coast. York, North Yorkshire and the East Riding LEP recognise that many of the businesses across their patch are micro businesses and that these tiny enterprises are a vital part of the local economy.
Enterprise Partnership Managers at Y, N Y & E R LEP also know that it is not easy to engage with the owners of the smallest businesses who, like worker ants, are getting on with running both their business and their life and have little time, or inclination, to engage with organisations that bang on about growth and GDP on a regular basis.
What has happened is this LEP has come to understand that they need to stop talking about growth in the same way as Government do; taking on more staff, increasing turnover, doubling productivity etc, etc, etc, and start to recognise that economic growth is being achieved in different ways. They want to tease what they believe to be around 30,000 'Invisible Business' out of their places of work to find out more about what they are doing and are embarking on a Growth Hub with a difference in a hope to achieve this.
If we consider there are an estimated 30,000 people running businesses that are not being recognised in Government statistics operating in a relatively small part of Yorkshire, then how many exist across the whole of the UK?
So, how do we change this?
Enterprise Rockers, a UK based community interest company, co-founded & co-funded since January 2012 by Tony Robinson OBE (@TonyRobinsonOBE) & I, to make life in micro business better, is a 'network of networks'. Our aim is to ensure any organisation that shows they genuinely understand that micro business matters is part of that network of networks, we believe this way the 'power of plenty' will be created across not only the UK but beyond into other countries where micro businesses also benefit local economies, wellbeing of individuals and the generation of reward, whether financial or otherwise.Many of the networks we engage with are not the traditional lobbying organisations but are those, like Enterprise Rockers, that have been born from an understanding that something different was needed for the micro business owners they represent. These groups link daily with 'Invisible Businesses' and it is important that they capture how many they do work with that fall in to that category. It is also very important that we, as individual micro business owners, stand loud and proud, as I do at 'The Efficiency Angel', an invisible business of my own, and make sure we are recognised for the contribution we are making to local, regional and national economies.
So come along ladies and gentleman, if you are an 'Invisible Business' make sure your work is recognised. There are nearly 5 million micro business owners across the UK that are being counted, who knows how many more 'Invisible Business' owners there are. Hands up if you are one of them, let us get some accurate numbers and recognition for because all micro business matters.
About the Author:
Tina Boden (@MicroBizGirl) is one of the UK's Leading Voices for Micro Business, an Independent Business Ambassador, Strategist, Networker, Collaborator, Speaker, Writer & Giver of Time - to find out more visit www.tinaboden.com
Great article Mrs B
Another good piece, Tina.
I’m wondering why the non-counted number (apart from tax dodgers) can’t be calculated from HMRC’s self-employed and partnership stats.
Thank you for your comments Averil & Ruth.
I have asked the question about those registered as self employed & partnerships and never received a clear answer Ruth but I will keep pushing forward to ensure all businesses are counted – jelly up a mountain springs to mind!
T
Glad to hear you will keep pushing, Tina. I believe the importance of the issue has become much bigger with the recent drops in full-time employment with the pincer movement of so-called flexible / zero-hours contracts and shrinking income support from the state. I’m confident the hidden micro-business and free-lance economy is bigger than ever, hence why the fall in unemployment claimants without corresponding rise in “real” jobs.
Describing the rise of this phenomenon in the US as far back as 2002, Dan Pink’s book Free Agent Nation does a good job of describing why tracking the numbers matters. Maybe you know it already, but if not, it can’t fail to give you more ammunition in support of the cause.