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It may seem like an easy question to answer, but what is a small business?

The truth is there are many definitions. Small and medium enterprises (SME), for example, make up 99% of all UK businesses but not all small businesses are SMEs. It sounds confusing, right? Well, it sort of is, but there is also some perks to that, too.

What is an SME?

When it comes to small businesses there are a variety of definitions often determined by the country they are in, the specific organisation or an official body.

In the European Union (EU), the definition of an SME is determined by turnover, employee numbers and balance sheet total. In that case, a small business is one that has annual sales between £1.4 and £7 million, below this figure and the business falls into the micro-business category.

According to the UK Companies Act 2006, a small business is one that does not have a turnover of more than £6.5 million, a balance sheet total of less than £3.26 million and has no more than 50 employees. Below these figures and a business falls into a micro business category.

Small business facts and figures

  • In 2020, there were almost 6 million small business in the UK
  • SMEs make up 99% of the business population
  • Nearly a fifth of SMEs are in the construction industry
  • 9%of SMEs were in the Wholesale and Retail Trade and Repair sector
  • London has the most SMEs (1.1 million) while the North East has the least (163,000)

What is a micro business?

The definition of a micro business is:

  • it must have less than 10 employees
  • has a turnover of no more than £1.7 million

Remember definitions vary by country, official bodies, and even businesses themselves, so your business may not fit into just one category.

How can No BS Consultancy help your business?

If you’re looking tobounce ideas, generate extra revenue, increase sales, or identifypotential problems, then I am here to help you. Unlike a business mentor, guru or advisor, Iam a business owner and self-taught entrepreneur. So, I have the experience to help younavigateyour business.

I have made mistakes along the way and enjoyed success and I can impart my ownknowledge to fellow entrepreneurs and business owners to help them create and run asuccessful small business in the UK.

To find out if I can help you, book an initial 15 minute discovery call today.

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