More small digital firms making £100,000-plus across the UK, data shows
26 February 2024, 00:04
Around 17% of digital microbusinesses, companies with fewer than 10 employees, now have a six-figure turnover, according to a GoDaddy report.
The UK witnessed a surge in small digital businesses making more than £100,000 last year despite continued economic pressures, according to new data.
Around 17% of digital microbusinesses, companies with fewer than 10 employees, now have a six-figure turnover, according to GoDaddy’s latest Venture Forward report.
This represents a 55% increase on 2022, when 11% of microbusinesses operating online recorded this level of turnover.
It comes amid a rise in small bricks and mortar businesses, such as independent shops, adding online operations following the Covid-19 pandemic.
GoDaddy said the findings point towards “resilience from UK entrepreneurs” amid a backdrop of the increased cost of living and higher interest rates.
The research also found that, of businesses that are now turning over more than £100,000-a-year, over half (54%) were started in the past three years.
It also showed that many digital microbusinesses required relatively small initial investments, with 43% starting with less than £5,000 of initial capital.
Andrew Gradon, head of GoDaddy UK & Ireland said: “It is remarkable to see that so many entrepreneurs have built six figure businesses – many with very minor initial investment – and that the trend is going upwards, as we’ve seen an increase of 55% on digital microbusinesses bringing in over £100,000 revenue.
“It is testament to the strength of Britain’s small business community, and the fact that British entrepreneurs really are unstoppable.
“Entrepreneurs who operate bricks and mortar only businesses are potentially missing out on huge growth at minimal cost, so there has never been a better time to diversify and sell in more ways.”
