Rise in number of UK online micro-businesses turning over £100,000

Rise in number of UK online micro-businesses turning over £100,000
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Wed 13th Mar 2024

Almost a fifth of digital micro-businesses have an annual turnover of more than £100,000, new research reveals.

The 17% figure is up from 11% in 2022, a 55% increase, according to the study of more than half a million small online firms by GoDaddy.

The growth is similar for micro-businesses generating revenue of over £50,000, which stands at 33% in 2024 compared to 25% last year. In comparison, the median annual earnings for full-time employees was around £34,963 in 2023.

Of the businesses turning over six figures, 54% were started in the past three years, demonstrating the speed at which successful digital businesses can be built.  

Many micro-businesses require relatively small initial investments, with 43% of founders saying they started with less than £5,000 and 21% spending only £500.

Over four fifths of entrepreneurs who own £100,000+ micro-businesses are optimistic for growth, the survey found. In addition, one in three said they are 'breadwinners' and contribute 51% or more to their household income. This was also the case of around a quarter of micro firms run by women.

Andrew Gradon, head of GoDaddy UK and 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 Britian’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."

Related resources

How to run and grow a successful micro-business

Get digital advice, tips and tools via Enterprise Nation's Tech Hub

business.connected: Help for businesses to kickstart digital change

Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance journalist and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's news reporter and Bristol Local Leader. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

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