UK200Group member comments on news that IT firms are amongst the UK’s fastest-growing micro-business
A member of the UK200Group of independent accountancy and law firms has today commented on news that programming and consultancy companies specialising in IT are amongst the UK’s top ten fastest-growing sectors of micro-business in terms of employment.
The report from the Royal Society for the encouragements of Arts, Manufactures & Commerce (RSA) also shows that IT firms are in the top 20 for their ability to create revenue growth. The RSA’s analysis of business population estimates for the past four years show that the average revenue per employee of an IT micro-business is £77k.
Although this is lower than the average revenue per employee in the IT sector as a whole (£151k), it means that the turnover of tech micro-firms is more per head than legal and accounting micro-businesses (at £65k).
The report adds that technology is a ‘key factor’ behind the increasing viability of all the UK’s five million micro-businesses that currently represent a third of private sector employment.
Jonathan Russell, Partner at UK200Group member firm ReesRussell: “Certainly I am seeing more IT focused business start-ups than any other sector by a significant margin. In particular the growth seems to be in the IT development sector rather than IT support, with a particular emphasis on the development of mobile apps and mobile related technology.
“Much of the new software development start-ups are focused on making existing processes more efficient and moving them to mobile platforms. Many of the start-ups are benefiting from SEIS investment with the founders working for little remuneration in the start-up period.”
