The micros we surveyed are keen to expand their businesses and take on staff but see barriers to this at every turn – either in the employment law regime, the skill level of the local labour market or their own knowledge of the regulatory landscape. The importance of flexible staff was continually highlighted, something under threat from the implementation of the Agency Workers Directive and further extensions of employment rights.

This report sets out the comprehensive, long term action that is needed to stimulate these micros into realising their ambitions. The Government’s micro-exemption is a good start, but will not on its own yield great results on the ground.