An interesting trend, evident before the global financial crisis and which has contoured since, is the growth in businesses without employees (Figure 1.4). In the UK, for example, the estimated number of private sector businesses has increased in each of the last 12 years since 2000, and by 1.33m (38.6%). Much of this increase has been by micro businesses and businesses without employees: 3.9m people (out of 23.9m) work in one-person enterprises. This trend is not confined to the UK. Evidence from the US also shows the shift toward micro-enterprises. It may reflect the fact that individuals, for lifestyle or economic reasons, are choosing to work for themselves in a business structure rather than find employment elsewhere.
SME