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 — Micro Business: The Untold Story — 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 don’t reflect ho ...