Longitudinal Small Business Survey 2023: business with no employees - headline statistics (HTML version)
Published 26 September 2024
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These are headline statistics from the Small Business Survey 2023: business with no employees full report.
The UK has 4.1 million businesses without employees. It is estimated that 70% are not registered for VAT.
Business growth
Businesses without employees who reported that they employed someone a year ago.
| Year | % businesses who reported that they employed someone in last 12 months |
|---|---|
| 2023 | 9% |
| 2022 | 9% |
| 2021 | 9% |
| 2020 | 13% |
| 2019 | 13% |
12% of businesses expect to employ someone in the next 12 months.
Sales turnover in last 12 months
| Year | Increase in turnover | Decrease in turnover |
|---|---|---|
| 2023 | 32% | 31% |
| 2022 | 35% | 30% |
| 2021 | 33% | 33% |
| 2020 | 13% | 60% |
| 2019 | 26% | 23% |
28% of businesses expect an increase in next 12 months.
19% of businesses expect a decrease in next 12 months.
Businesses without employees reporting a profit
| Year | % reporting a profit |
|---|---|
| 2023 | 73% |
| 2022 | 75% |
| 2021 | 70% |
| 2020 | 67% |
| 2019 | 78% |
There has been a sustained recovery for profit levels since 2021.
Obstacles to business success and growth
| Obstacle | % businesses reporting issue |
|---|---|
| Energy prices | 48% |
| Competition | 37% |
| Cost issues other than energy | 33% |
| Regulations or red tape | 32% |
| Taxation | 30% |
Cost increases
15% of businesses cited an increase in the cost of imports as an obstacle.
32% reported plans for growth-related activities were affected by rising costs.
14% reported energy costs affecting growth related activities.
25% reported other costs affecting growth-related activities.
Use of technologies or web-based software
In 2023 more than 22% of businesses used technologies or web-based software to sell to customers online. This compares with over 19% in 2022
In 2023 over 35% of businesses used technologies or web-based software for managing their business. This compares with over 27% in 2022.
Trading with overseas customers and suppliers
6% plan to increase export activity
5% plan to start exporting
Exporting steady
Businesses report minimal change to amount of exports.
| Year | Exports | EU exports | Non-EU exports |
|---|---|---|---|
| 2023 | 12% | 8% | 9% |
| 2022 | 11% | 7% | 8% |
| 2021 | 12% | 9% | 9% |
| 2020 | 14% | 9% | 10% |
| 2019 | 13% | 9% | 9% |
Importing steady
Businesses report minimal change to amount of imports.
| UK imports | 2022 | 2023 |
|---|---|---|
| Imported | 14% | 14% |
| EU imports | 9% | 10% |
| Non-EU imports | 10% | 8% |