Gain perspective on SMEs, where do you wish to be?

I always held entrepreneurial mindset since a child, money is irrelevant, my want stemmed entirely from a need to build, and to own my own life, on my own terms.

Unaware, I had stereotyped what an entrepreneur was. I imagined huge corporations with high amounts of turnover, and equally large work force. To me, every business owner was one who had limitless ambition.

This publication drills home the point that I could not have been more wrong.https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7965458159285162153

At the start of 2019 there was an estimation that there are 5.9 million UK private businesses. Out of which 4.46 million were sole proprietorships & partnerships with only one employee, “assumed to be an employee director”.

Meaning, 76% of businesses did not employ anyone outside of themselves. So, if you have employees, I tip my hat to you, you are doing a service to the country by providing jobs. To those of you who do not, I salute, you have ventured onto your own and taken control of your life which I respect.

99.30% of the total business population that employed 0-49 employees. So, if you employ 50 people, you are in the 1% club for employment!

Of course, size does not mean everything, and is no guide to whether a business is successful or not, simply that it provides employment opportunities.

On average businesses without employees generate a turnover of £68,000, and those that employ less than 10 employees make £514,000 PA. SMEs with 10-49 employees make on average £2,978,000. Those goliath SMEs (50-249) average a turnover of £17,966,000.

Disclaimer, it is important to note that, the turnover contributed to the average is disproportionate. It only takes a small number of excellently managed firms to raise the average turnover. In reality, the average one-man-band SME could turnover less that £68,000. So, don’t fret if you are in the lower band, life is all about a balance.

Use this as a thought experiment, now that you have a more informed idea of the average SME (if such a thing exists) where do you consider yourself at present, and where does your ambition become fulfilled, if at all?

Perhaps you will be the next Goliath.

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