UK SMEs: Classification and Definition

What percentage of total employment in the UK's private sector is accounted for by SMEs?

How many SMEs are there in the construction sector in the UK?

What percentage of the UK's employment is accounted for by large enterprises?

How many private sector businesses were there in the UK at the start of 2019?

What is the minimum number of people that must be employed to be classified as a large enterprise?

What is the main criterion for determining the size of a business in the UK?

What percentage of businesses in the UK are classified as small to medium sized?

What is the maximum turnover for a business to be classified as a microbusiness?

What percentage of the workforce wants to set up their own business?

What is the minimum equipment required to start a microbusiness?

Defining SMEs in the UK

SMEs in the UK are classified as having fewer than 250 employees
Small businesses have 10-49 employees, with a turnover of under £10 million
Medium businesses have 50-249 employees, with a turnover of up to £50 million

Microbusinesses in the UK

Microbusinesses have a turnover of £632,000 or less, £316,000 or less on their balance sheet, and 10 employees or less
96% of SMEs are classified as microbusinesses
18% of microbusinesses have a turnover of less than £50,000
Over 23,500 microbusinesses have a turnover of more than £1 million
The average turnover of microbusinesses in the UK is £286,879

Growth of SMEs and Microbusinesses

SMEs account for 60% of total employment in the UK's private sector
There are now two million more SMEs than in 2000
64% of the workforce wants to set up their own business, mainly for more money or to be their own boss
Technological advancements have made it possible for people to start a microbusiness with just a laptop or smartphone

SMEs in Different Sectors

There are almost 1 million SMEs in the construction sector
Wholesale, retail, and manufacturing sectors each have a strong representation of SMEs (10% each)

Large Enterprises in the UK

Large enterprises are classified as having 250 or more employees
Only 7,700 businesses are classified as large enterprises, but they account for 40% of employment and more than half of turnover in the UK
Over 25% of large enterprise owners are based overseas, primarily in the USA and Germany

Learn about the classification and definition of Small and Medium Enterprises (SMEs) in the UK, including the number of employees and turnover thresholds.