There are 2.17 million so-called micro-businesses across the UK, with over 700,000 located in the South East of England and London, according to analysis from Direct Line for Business.

The East of England is also an entrepreneur hotspot with 216,700.

These enterprises account for 89 per cent of all companies across the UK.

One in five micro-businesses operate on a turnover of less than £50,0003, but there are more than 23,500 in the UK with a turnover of £1m plus, the study found.

Nick Breton, head of Direct Line for Business, said: “Britain is a nation of entrepreneurs, as highlighted by the fact that there are nearly 34 micro-businesses for every 1,000 people in the UK.

“It is unsurprising to see that London and the South East account for more than a third of the nation’s micro-businesses, as families in these areas are often seeking to gain extra sources of income by turning their hobbies into professions.”