Maltix Business Plan - Market Size

 Market size and Target market segment
United Kingdom

According to the UK government’s Department for Business, Energy, and Industrial Strategy (BEIS), there were 5.47 million small businesses (with 0 to 49 employees) in the UK at the start of 2022, which accounted for 99.2% of the total business population. This makes small businesses, by far, the most common type of business in the country2.

The UK SME analysis shows that, taking only those who might most likely take up our services there are just over 4 Million small to medium businesses, (see Appendix 1) of these, the sector with the highest number of SMEs was the Professional, Scientific and Technical activities sector, with 761,735 SMEs. This sector also accounted for the largest number of registered businesses in the UK.

United States of America

For the USA which classifies slightly differently (up to 20 employees as opposed to the UK, up to 50), the selected target figure still comes up to just over 20 million potential US users (see Appendix 2) European Union

For the EU according to Statista, there were estimated to be Approximately 23.1 million small and medium-sized enterprises (SMEs) in the European Union in 2022, with the vast majority of these enterprises micro-sized firms which employ fewer than nine people. A further 1.35 million enterprises were small firms with between 10 and 49 and in 2021 SME’s in the European Union employed +almost 84 million people. However, the value varies by country so, in Malta for example, 93.1 percent of value added to the economies comes from SMEs, while in Germany 82 percent of the county's added value comes from SMEs. For the European Union, the average value that SMEs contribute to the economies is around 56 percent. The total for the EU ( 1 to 50staff) would thus be 24.45M and if as in the two examples above we exclude the sectors such as construction agriculture forestry and so on and assume that to be a similar 30% or so then, we arrive at a figure of just over 17 million relevant EU SMS potential users.

European Union

For the EU according to Statista, there were estimated to be Approximately 23.1 million small and medium-sized enterprises (SMEs) in the European Union in 2022, with the vast majority of these enterprises micro-sized firms which employ fewer than nine people. A further 1.35 million enterprises were small firms with between 10 and 49 and in 2021 SME’s in the European Union employed +almost 84 million people. However, the value varies by country so, in Malta for example, 93.1 percent of value added to the economies comes from SMEs, while in Germany 82 percent of the county's added value comes from SMEs. For the European Union, the average value that SMEs contribute to the economies is around 56 percent. The total for the EU ( 1 to 50staff) would thus be 24.45M and if as in the two examples above we exclude the sectors such as construction agriculture forestry and so on and assume that to be a similar 30% or so then, we arrive at a figure of just over 17 million relevant EU SMS potential users.

The Arab States

The next area considered was the Arab States, and the IMF “Enhancing the Role of SMEs in the Arab World—Some Key Considerations; Policy Paper; November 2019” is an interesting perspective for our growth prospects. Since our services are aimed making it easier for SMEs to grow their businesses without huge infrastructures. The IMF report stresses.

“A vibrant SME sector can play an important role in tackling economic challenges. In particular, SMEs are a major source of new job creation in emerging and developing countries, accounting for some 45 percent of new jobs (AyygarWilliamet al., 2014). SMEs’ contribution to GDP in Arab economies ranges between 4 and 40 percent, reflecting both potential for a larger role for SMEs in some countries as well as their already significant role in others. It is estimated that micro, small, and medium enterprises (MSMEs) account for 80–90 percent of businesses in the MENA region (Saleem/IFC 2017) and around 97 percent in the Arab World (MSME Country Indicators, 2014), with density (enterprise per 1,000 people) more heavily weighted towards micro enterprises (Gonzales et al, 2014). For example, the density of MSMEs in Jordan and Tunisia in 2011 was around 25 and 56 MSMEs per 1,000 people, respectively, of which 23 and 55 were microenterprises (Figure 1). 7. SMEs offer an opportunity to capitalize on the region’s demographic resources. SMEs account for a sizeable share of formal employment in several economies in the region, including Iraq, Lebanon, Sudan, West Bank and Gaza, and Yemen, where over 50 percent of private sector employment is in SMEs (Figure 2). This share is likely to be higher when considering the informal sector. At the same time, youth and female unemployment rates have persisted above 20 and 17 percent (ILO), respectively, since 2010, and labour force participation rates have not exceeded 34 and 27 percent (ILOSTAT), respectively, over the same period. With youth comprising around one third of the population, SMEs can contribute to private sector employment opportunities needed to absorb young labour market entrants”.

https://www.imf.org/-/media/Files/Publications/PP/2019/PPEA2019040.ashx

The Developing World

For the rest of the developing world, the World Bank says:

“Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth, it is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries”.

https://www.worldbank.org/en/topic/smefinance

Whilst the absolute numbers are not easy easily available for the last two sectors, it is obvious, not only that those sectors are probably quite large, but more importantly that by comparison with the developed world, these sectors are not only underrepresented compared with large employers but more importantly are viewed by two large international bodies as being the sector that will drive growth and development in those countries.

Now, given that the QR codes themselves, are language independent, and what they give access to, can be available, not only in multiple languages, but can be easily available within one QR code, in several languages, according to the needs of the owner, we consider that this area in particular, represents the opportunity for significant growth, but will require a degree of funding since access to it is not simple.

Summary

Taking a very conservative view, we can reasonably consider a target marketplace better than 40 million SME’s who could use our services, even if only on their smartphones, to achieve significant business improvements for their business.

The current modelling suggests that breakeven is well below £200K, but taking a mix of 70% MaltixQR Bizicard, 20%MaltixQR PhoneSite, 5% MaltixQR Business App. and 5% MaltixQR PWA (Smartphone centred web site replacement) shows a break-even volume, at that mix, of just under 750 sales for startup fee and 1 year service.

So, at the most conservative of estimates, we need 0.00174% of the global market or 0.0174%of the UK market alone. As an aside, we already have US customers and globally connected networks.

Supporting DataSelected UK SMEs by trade

These are the selected entries for those we deem to being a possible target market and ignores certain sectors, such as construction.

Selected UK SMEs by trade

Number of SMEs in the UK 2022, by sector

Selected

Number of small and medium-sized enterprises in the United Kingdom in 2022, by sector

Professional, Scientific and Technical Activities

761,735

Wholesale and Retail Trade

547,190

Administrative and Support Service Activities

471,710

Other Service activities

354,770

Human Health and Social Work Activities

340,505

Information and Communication

334,245

Education

307,840

Arts, Entertainment and Recreation

274,430

Manufacturing

242,915

Accommodation and Food service

220,340

Real estate activities

129,695

Financial and Insurance activities

83,155

Totals

4,068,530

Selected USA SMEs by trade

Industry (nonfarm, according to NAICS)

Non-employer (x1000)

1-19 employees (x1000)

Professional, scientific, & technical services

3,772.57

770.71

Other services (except public admin.)

2,851.69

656.72

Real estate & rental & leasing

2,942.24

313.39

Administrative, Support, and Waste Management

2,595.84

311.74

Arts, entertainment, & recreation

1,563.26

119.7

Accommodation & food services

497.34

423.35

Finance & insurance

755.32

220.76

Educational services

894.7

76.16

Wholesale trade

391.67

243.98

Manufacturing

354.2

181.09

Information

363.63

71.49

Management of Companies and Enterprises

-

4.79

Industries not classified

-

11.37

Sub Totals

16,982

3,405

Total

20,388