Starting a business is about much more than just making money, as a new study finds the UK’s 5.2 million microbusinesses are highly ambitious but driven by multiple motivations – particularly satisfying customers, personal freedom and flexibility and adding value to their local communities.
While growing profits is understandably a top goal for almost a third (62%) of micro business owners, the research study from Small Business Britain and Xero found this is matched by a similar number (63%) wanting more flexibility and freedom over their work lives. And the most common aspiration – for three quarters of business owners – is pleasing customers.
The research – produced by the organisers of the popular Small and Mighty Enterprise Programme that helps micro-businesses to grow – identified significant ambition among the UK’s smallest and youngest firms, with over two thirds expecting to grow by 50% over the next five years.
The study – undertaken to understand and support the goals that entrepreneurs have for scaling-up – also found UK start-ups and sole traders are incredibly mission driven. Almost two thirds (60 %) want to share their skills and passion, over half (57%) are keen to contribute to their local community and 26% aspire to have a positive impact on the planet.
“Setting up my business was about so much more than the money,” says Jenny Lowthrop, founder and Director of Coworking Corner in Matlock, Derbyshire.
“Instead I wanted to contribute to the local area by building a community and a place where people can come together. I love the people who come to my co-working space and many of my customers are now friends.”
The long-term aspirations of business owners were also revealed – with almost half (47%) wanting to work in their businesses for as long as possible, highlighting that many UK entrepreneurs start-up to create their own work, seeking more fulfilment and balance.
Almost a quarter (24%) hope to grow their businesses to one day sell-up and almost a third (30%) dream of being able to step back from day-to-day operations while drawing a passive income.
“Digging into what drives micro business owners deep down is really fascinating,” says Michelle Ovens CBE, Founder of Small Business Britain.
“This group of the UK’s tiniest businesses are super ambitious and pack a real punch. And it is clearly about a lot more than making money for them – they are powered by passion, a desire for a freedom and a deeper sense of mission to help their communities and wider society. It is really important that we recognise the rich contribution they make and their multiple drivers so we can support these businesses to grow for the benefit of the UK.”
Small Business Britain’s ‘Small and Mighty Enterprise Programme’ is run in partnership with global small business platform Xero, and university ARU Peterborough. The free six-week programme – which recently completed its latest cohort round – provides flexible, online training on taking the first steps towards growth, as well as offering mentoring and peer-to-peer support opportunities. Launched in 2022 it has already boosted around 3,500 sole traders and microbusinesses across the country.
Alex von Schirmeister, Managing Director, UK and Emerging Markets, Xero, said: “It is inspiring to see a new generation of British entrepreneurs who are driven not only about the prospect of making money but also, the aspiration of achieving a good work-life balance and the commitment of serving their communities. Small businesses are critical for the UK economy and we will continue supporting them in their journey so they can grow and fulfil their dreams.”
