Potentially hundreds of thousands of small businesses are ‘invisible’ in the eyes of the government, according to new research.
Out of 4.5million micro-businesses across the UK (those employing 0-9 people), many are not considered in government statistics or research quoted in the media.
To be considered, businesses would usually have to employ staff and be registered for VAT and as a limited company. This counts out many sole traders and small businesses which turnover below the £79,000 VAT threshold.
In an article for smallbusiness.co.uk, Tina Boden explored the issue of these so-called invisible businesses. The government does not consider these types of micro-businesses when compiling statistics, despite the importance the company may hold for the owners or the local community.
Boden said: “I own an ‘invisible business’. And yes this does bother me, I want to be counted – I believe I am making a difference to the national economy, I pay tax and National Insurance contributions.”
“Let us recognise everyone for the work they do and the contribution they make as part of the business community of the UK even if they are the micro-est of micro.”