Millions of the small businesses Britain relies on every day are being written out of the national economic conversation, according to our new analysis with the Centre for Economics and Business Research (Cebr). The research identifies an ‘overlooked economy’ of twenty sectors covering 3.3 million businesses employing fewer than ten people, who underpin everyday life in Britain. They build our homes, stock our shelves, move our goods, fix our cars and advise our companies and together turn over £868 billion a year and support 3.8 million jobs.
Yet, despite all of this, they are operating with less visibility, support and recognition than they deserve.
Cebr analysed five years of UK Parliamentary debate alongside the economic contribution made by different sectors. The average sector was mentioned 2,420 times over five years. But sectors like rental and leasing were mentioned only 26 times, roughly once every ten weeks. Wholesale trade, where businesses employing fewer than ten people turn over almost £118 billion, was mentioned just 170 times.
That invisibility has a human cost. Founders and owners in these sectors can find themselves having to master every aspect of running a business at once. From managing finances and marketing a product to recruiting a team, while also navigating a landscape where their challenges rarely make the headlines. The pressure to have all the answers can quickly turn an exciting venture into an uphill battle.
Small business owners should not have to do it alone. There is real power in being willing and able to ask for help and build relationships with advisers, peers, accountants and mentors. But finding the right support is not always straightforward – particularly for businesses whose experiences and challenges are not always reflected in the wider conversation.
When visibility is part of the problem
For owners operating in these sectors, the lack of visibility compounds the everyday pressures of running a business. Relevant advice is harder to come by. Relatable business stories are rarer. And the sense that mainstream guidance simply does not fit can make an already demanding role feel more lonely.
Our research shows just how significant that gap can be. We looked at the twenty sectors generating the most turnover from businesses with fewer than ten employees. Six of those sectors receive less than a tenth of the parliamentary mentions an average sector gets – from the mechanic keeping delivery vehicles on the road, to the wholesaler ensuring shelves remain stocked, and the IT consultant keeping systems running. These businesses are essential and our economy depends on them, but you would not know it when it comes to our national conversation.
That is where relationships and shared experience can make all the difference. Whether it is tailored advice, mentorship or simply having someone to act as a sounding board, the right support can help ensure small business owners do not have to navigate those decisions alone.
The value of trusted advice
Understanding and managing business finances is a prime example of where the right support makes a tangible difference. We know that financial confidence is not just a business problem, but an emotional one too. In fact, our research shows one in five small business owners hesitate to ask financial questions because they feel as though they should already know the answers.
That is exactly why an accountant or bookkeeper can be so influential to a small business journey. Having an expert to turn to and that knows the business inside and out can help owners work out whether they can afford a new hire, set money aside for a tax bill or spot a cash flow shortfall before it becomes a problem. That support can ease immediate concerns and give owners greater confidence to make informed decisions that keep the business financially healthy.
There is also something deeply personal about the relationship between a small business owner and their accountant or bookkeeper. Finance is intrinsically private. It is the last thing people discuss at the dinner table, but often the first thing to keep them up at night. And when owners are already operating in sectors that receive less attention and recognition, knowing who to turn to for trusted advice can be even harder. An accountant or bookkeeper can provide that support, giving owners both the expertise and reassurance they need to feel supported in the decisions they face.
The power of shared experience
Support is not just about specialist expertise. Every business is different, but many of the milestones owners encounter are remarkably similar. Making that first hire, dealing with a difficult customer or facing an early growth decision can all feel daunting. That is where the experience and perspective of other business owners can be invaluable. Someone who is navigating the same situation, or has already been through it, can share honest lessons, offer a fresh perspective and challenge assumptions. Over time, these relationships can also help owners recognise that the pressures they face are not always theirs alone. When the same issues are being felt across businesses and sectors, bringing those experiences together can give them greater visibility and a stronger voice.
But the responsibility for making that voice heard cannot sit solely with the small businesses that make up the overlooked economy. They should not have to shout louder than everyone else to get the attention and support they need. The government has a role to play in actively seeking out these businesses, listening to their experiences and ensuring the issues they face are reflected in the wider policy conversation.
No two businesses are the same, but overlooked sectors often face shared challenges that deserve greater attention. Making it cheaper to hire, creating a fairer business rates system and tackling late payments would help address some of the pressures holding them back. Listening to the businesses experiencing these challenges first-hand is an important step towards ensuring policy tackles genuine barriers and gives them the support they need to grow.
It all starts with a conversation
Running a small business will always involve difficult decisions, unfamiliar territory and moments of uncertainty. What matters is that owners have people around them who can help navigate those moments – whether that is an accountant who understands the numbers, a peer who has faced the same decision before or a policymaker willing to listen to the challenges affecting their sector.
No small business should feel as though it has to succeed in isolation. Creating stronger connections between owners, advisers, peers and government means giving businesses access to the experience, perspective and support they need to move forward with confidence. Because while a brilliant business might start with a one-person idea, helping it thrive is rarely a one-person job.
Key takeaways
- Research by Cebr for Xero identifies an ‘overlooked economy’ of twenty sectors covering 3.3 million businesses employing fewer than ten people, which together turn over £868 billion a year and support 3.8 million jobs, yet operate with less visibility, support and recognition than they deserve.
- Cebr’s analysis of five years of UK Parliamentary debate found a significant gap between the economic contribution of these sectors and how often they are discussed, with six of the twenty receiving less than a tenth of the mentions an average sector gets.
- For owners in these sectors, the lack of visibility compounds everyday pressures. Many have to master every aspect of running a business at once – from managing finances and marketing to recruiting a team – while relevant advice is harder to come by.
- Trusted relationships with accountants, bookkeepers and peers can make a tangible difference for small business owners, helping them make informed financial decisions and recognise that the pressures they face are not always theirs alone.
- Responsibility for making overlooked small businesses heard cannot sit solely with those businesses. Government has a role in seeking them out and listening, and making it cheaper to hire, creating a fairer business rates system and tackling late payments would help address the pressures holding them back.
