The number of UK micro firms has leapt 1.4 million since 2000, making them the fastest growing category operating across the country.

Figures by the Centre for Economics and Business Research (CEBR) show the stock of micro firms went up 43 per cent since 2000, but that numbers of firms categorised as ‘high-growth’ has fallen significantly.

In the CEBR study, high-growth firms are defined as growing headcount by 20 per cent or more for three consecutive years. The proportion of these businesses has fallen by a fifth since 2005, it said.

David Swigciski, SME trading director at RSA, said: “The recent recession has had a significant impact on the business economy, with companies becoming smaller in size. Unfortunately, continuing along this road isn’t an option if we want a sustained recovery from the economic downturn.

“Getting back on track and strengthening the economic recovery is a case of redressing the balance between start-ups and growth. This can be done by encouraging investment in growth and helping – as well as ensuring – SMEs reach their full growth potential.”

CEBR said the high-growth business sector was expected to recover, but that government support was required to help it develop.