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A group of MPs is calling for changes to be made to the definition of micro businesses, in order to provide greater support. The MPs think that the smallest UK businesses should be treated separately and differently to other Small and Medium Enterprises. Although micro businesses create jobs in the UK, they are often held back by the excessive red tape and bureaucracy aimed at larger companies.

The call for a change in definition has come from the All Party Group for Micro Businesses, comprising a group of MPs. Support and legislation could be tailored to the micro business, if the definition was amended. However, the government has refused change.

The EU definition of a micro business is one that has less than 10 people in its employ, and a turnover below £1.7 million. Under this definition, 95 percent of all UK businesses fit the criteria for a micro business. The group of MPs have argued that a micro business should be defined as having less than five employees, so that policy could be created specifically for the group.

The founder of the group, Anne Marie Morris MP spoke to the BBC, saying that micro businesses could be utilised in the growth of the economy. The US has evidence that shows 90 percent of jobs created following the downturn were in that sector.

One business owner states that a sole trader or a business owner with less than five employees doesn’t have the resources to deal with excessive legislation and taxation. However, the government have rejected calls for change.

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