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New alliance gives a voice to the UK's smallest firms

28 March 2023

The newly-formed Micro Business Alliance aims to promote better government understanding of the needs of UK start-ups, small businesses and sole traders.

Over 100 organisations that work in supporting micro businesses have united to create and launch the Micro Business Alliance. A micro business has up to nine employees and includes start-ups, sole traders, self-employed people and freelancers. There are 5.2 million micro businesses in the UK, representing 95% of all businesses. They account for one in three employees in the UK and contribute a fifth of the country's GDP.

Highlighting the needs of micro businesses

The Micro Business Alliance has been established to ensure that there is an effective dialogue with the government to ensure that they have the opportunity to understand and better communicate with micro businesses. It says that the UK's smallest firms were "left to fend for themselves" during the pandemic because the government did not fully understand their needs.

Driving the initiative, Tony Robinson, who has championed the micro business sector for many years, said: "Micro and small businesses form the bedrock of our communities and our local business ecosystems. They provide employment in both the booming and difficult to reach areas, and in many cases give the opportunity for people who do not have the ability to, or choose not to, enter mainstream employment the opportunity to create their own ventures and means to independent living."

Robinson added: "Until now, business groups have lobbied on behalf of established and big business. Through an army of committed organisations up and down the country now uniting to inform the government on key micro and small business issues, we can ensure all levels of business have a voice and influence."

"I very much welcome the launch of the Micro Business Alliance. We have a wonderful network of organisations across the country that tirelessly help small businesses, start-ups and micro businesses. But getting their diverse needs mapped onto the government's business plan has been challenging. The Alliance now gives us the opportunity to do that and ensure that the critical part that they play in creating thriving business communities is fully recognised and backed both by Westminster and regional administrations." Liz Barclay, UK small business commissioner

The Micro Business Alliance is chaired by Ian Cass, chief executive of the Forum of Private Business (FPB). He said: "The pandemic support for businesses highlighted that those at the micro end of small businesses missed out on the help that some other businesses received, not through any intention by the government, but simply because there was a lack of understanding of micro-businesses and no organisation that could represent their collective needs.

"We are now correcting that. Through the supporters of the Alliance we estimate that we can share the perspectives of nearly 1.2 million micro and small businesses in our high streets and communities, and ensure that they can work in a thriving environment which is understood and championed by the government's levelling up agenda."

Written by Rachel Miller.

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