This growth is impressive during the current cost-of-living crisis. 17% of digital microbusinesses now report six-figure turnovers, up from 11% last year. Those making over £50,000 a year have increased to 33%, compared to 25% in the previous year. In 2023, full-time UK employees made about £34,963. Our data shows that e-commerce is important for fast-growing businesses.
55% of entrepreneurs with digital microbusinesses earning over £100,000 a year say their website is their main income source. Less than 25% invested their initial money to create an online presence. This shows the importance of having a strong digital setup in today’s competitive market. We found that online businesses earning over £100,000 started within the last three years. Short of half needed less than £5,000 to start, and 21% began with only £500.
Online platforms are open all the time, so businesses can make sales even when the store is closed. Take Rachel Brennan from Blossom and Grow Florist. Rachel has had to adapt to the realities of running a small business in the past couple of years. This is where the seven-day work ethic that she learnt as a teenager comes in.
In 2024, most digital microbusiness owners feel positive about growth. 83% of them are confident. This is much higher than the 22% of people who feel confident about the UK economy. This becomes more important as our research shows that one-third of digital microbusinesses are the main income source for households
It takes time to make a lot of money, but you don’t always need to spend a lot of money. Over half of microbusinesses making £100,000 a year work more than 40 hours a week on their businesses. The UK’s digital microbusiness sector offers great opportunities for growth and success. Entrepreneurs are adapting and innovating. The digital marketplace is set to transform business in the UK.
