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Join a growing community of business owners. Get the latest business guidance and economic news via WhatsApp, email, or RSS.
25 March 2026
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19 min
The Enterprise Research Centre (ERC) has warned that Britain is failing to unlock one of its most powerful economic assets, as micro-businesses with the potential to drive GDP growth are being constrained by regulation, complexity and neglect. In the latest episode of the ERC’s Exploring Enterprise podcast series — titled Micro Business: The Untold Story — leading researchers and practitioners examine why the UK’s smallest firms remain overlooked despite their central role in the economy. Professor Mark Hart, speaking on behalf of the ERC, said the issue is both structural and urgent. “Micro-businesses are fundamental to the UK economy. They are not peripheral — they are central to productivity, job creation and local growth. Yet too often, they are either ignored in policy design or burdened with systems that simply don’t reflect how they operate in practice.” The discussion highlights a critical imbalance. While micro-businesses account for over 95% of UK firms and represent a significant share of economic activity, policy frameworks frequently prioritise larger organisations or impose compliance requirements that disproportionately affect smaller operators. As a result, the ERC argues, many micro-business owners spend more time navigating regulation than growing their businesses. Professor Hart added: “There is a clear opportunity to improve GDP growth by enabling micro-businesses to scale, invest and employ. But that requires a shift in thinking — away from one-size-fits-all policy and towards a model that recognises the realities of running a small firm.” The podcast explores how overlapping regulatory changes, fragmented support systems and increasing administrative burdens are combining to create what participants describe as a “drag on growth” across the micro-business sector. For many business owners, the challenge is not a lack of ambition, but a lack of clarity and time. Identifying relevant support, understanding compliance obligations and adapting to constant policy change can place a disproportionate strain on small teams. The episode also examines the role of digital platforms and better coordination between national and local support providers in simplifying access to trusted guidance. The collaboration with Business111 reflects a shared commitment to bridging the gap between research, policy and the lived experience of micro-business owners across the UK. Micro Business: The Untold Story is part of the ERC’s Exploring Enterprise podcast series and is available now across major podcast platforms and on YouTube. ________________________________________ 1. Notes to Editors • The Enterprise Research Centre (ERC) is a leading UK research organisation focused on small business and enterprise dynamics, based at the University of Warwick Business School (WBS). • Professor Mark Hart is a leading UK expert on entrepreneurship and small business growth. • Exploring Enterprise is the ERC’s podcast series examining key issues affecting UK small and medium-sized businesses. The rest of the series can be found here - https://www.enterpriseresearch.ac.uk/podcast_series/exploring-enterprise/ • Business111 is a UK-based platform supporting micro and small businesses through curated guidance and community engagement. • Together, micro and small businesses account for over 99% of UK firms and play a critical role in employment and economic growth. • To contact Professor Hart for interview please contact - wendy.ferris@wbs.ac.uk • To contact Liz Barclay please contact tony@business111.com
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