What does it really mean and what part can micro businesses play to make the difference?
There's no doubt that there has been a somewhat unsettling news cycle for business in the UK to kick off 2025 and there's much trepidation about what's in store. In all the meetings and conversations I am having with businesses of all sizes, I'm hearing that 2024 was tough, with many starting the New Year trying to navigate their next steps. Of course, the biggest word that jumps out at us all is 'growth'. With a productivity shortfall that appears to be getting worse, the country is looking for a way forward.
But what does growth really mean?
As a business coach and consultant that works with lots of growth programmes, for many, it means simple growth of business size, usually through revenue and profit. Simple, straight line, old school growth. That can be great. However, there are other very important factors in play that also fall under the banner of growth, that are important, valid and will have a long terms impact on our all our lives.
Growth in it's broadest sense may not always mean immediate growth in cash at all but rather a deepening of purpose, embracing sustainability at a new level, adoption of new tech, innovation that can transform sectors, different working experiences for teams, improved wellbeing in the workplace and more. In a country, and world, that has been existentially challenged in the last 7 years, this is the moment to step back and scan the big picture, and take an holistic approach to growth in all its forms and, for all business sizes.
Let's assume that big business can take care of itself and has the foresight and bravery to do better business for the benefit of all as they seek to grow. I will also continue to relish my work with SMEs in the UK to help them unlock potential, innovate & adopt new perspectives - frankly, they're amazing.
But what about micro business in Britain and the part it can play to help revolutionise our 'growth' in Britain?
As always, I start with definition. Micro businesses are those with 0-9 employees. If we count sole traders in the mix, the number exceeds 5.2million in the UK. Of the UK's £4.48 trillion turnover, micros contribute 13% and sole traders another 7%. A contribution of a 5th of UK turnover is significant but their impact, and perhaps the way they measure & contribute to 'growth' in the future, could be felt much more widely and deeply if we can learn to celebrate & support their efforts in a new and more profound way in 2025 and beyond.
What are these other ways of approaching growth? How can micro businesses possibly pave the way for something new and exciting? What can we do to help bolster growth, in all its forms, for micro business in Britain.
I've already addressed economic growth in its purest forms - more revenue, higher profits from greater efficiencies and more sales. Boom. But what of other measures of growth that not only have a deep impact on all our lives, but also can contribute to prosperity for all too.
Environmentally sustainable practice - micro businesses are, by their very nature, better at sustainability. Sometimes because they have a drive and purpose to operate that way, but also because supply chains are short, cashflow is tight and capacity means lean, lean efficiency. Because micros can stucture their businesses more easily to achieve a sustainable purpose or to simply survive, they have much to teach us & we can be inspired by them and choose them with our purchasing power. 'Growth' through effective environmental safeguarding & practice needs to be a core feature of any business.
People focussed - micros need people as much as any business, but the people they work with, sell to and collaborate with are up close and personal. Intrinsically people focussed in their approach, micros make a significant contribution to both communities and wellbeing. Their people focussed experiences means that they often have the most flexible working practices, most intimate customer experiences and breathe life into the places they are. This 'growth' in quality of life cannot be underestimated.
Local economy counts - we all understand that when we buy from the smiling face packaged warehouse, that our money flits away somewhere else. We're not convivnced it goes to employees much, we know it makes billionaires somewhere else and we fear that it encourages the buying of lots of throwaway tat. No doubt there's plenty of money sloshing around but could we grow in a way that means that more money hangs around in our place? Micros are embedded in place. They operate from their place, shop in their place, pay taxes in their place and employ people from their place. They spend money, create revenue and share their success in their place. Consistent 'growth' such as this may have smaller numbers, but has a wider and deeper impact on places everywhere.
Lives we love - it might be stating the bloody obvious, but what point is there of growth if it doesn't make lives better in some way? From workplace experiences to shopping experiences, from spaces that allow us to live well to environments that allow all to thrive. Micro business has been a way for many to build working lives that they love or unlock their skills in a new way, and their customers benefit deeply too. No doubt we need big business in our lives, but perhaps 'growth' in high quality life experiences can be a leaf we take from micro's books to provide a better balance.
Collaboration over competition - in a world where growth has often equated to squashing our competitors, the concept of growth through collaboration may feel unsettling. However, micros thrive this way every day. Oursourcing to other micros, sharing knowledge in the absence of accessible business support, swapping skills and innovating together are part and parcel of micro life. 'Growth' through collaboration creates benefits for the many over the few.
If you're building a life you love more through micro business owner or simply want to know more, then hop over here. The mission at Simply HQ is to help transform more lives through micro business.
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