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Published
Mar 6, 2023
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630k 'microbusinesses' could fold this year without more government help - report

Published
Mar 6, 2023

Over 12% of the UK’s 630,000 microbusinesses -- those employing fewer than 10 people -- fear they will have to close this year as costs keep rising, a report has revealed. The study estimates that if an eighth of microbusinesses under threat went under, it would wipe £12 billion from the economy.


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The annual Venture Forward study by website builder GoDaddy found that only a fifth of microbusiness owners think the government is doing enough to help them. More than three quarters also described the cost-of-living crisis as the greatest challenge they've ever faced, with the price of energy the biggest single concern.

According to GoDaddy's UK manager Andrew Gradon, microbusinesses represent 96% of all businesses within the country's private sector.

“They are the lifeblood of businesses in the UK and it’s them that are on the frontline very much feeling the direct impact of the cost-of-living crisis,” he said.

He claims around 42% said that they wanted support with tax incentives but are also looking more broadly to business support – “so looking at technical assistance for business development as well as support for digital strategy.”

The data also shows that the cost-of-living crisis is having a disproportionate impact on microbusinesses owned by underrepresented entrepreneurs.

According to the report, 85% of black entrepreneurs described it as the worst time they can remember, as did 84% of those who are Asian compared with 75% of white entrepreneurs.

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