SMEs boosting private sector turnover
A surge in business creation is boosting turnover for companies across the country as the economy continues to show early signs of recovery.
Around 102,000 private sector businesses have been created in the last year in the UK, with the total number of these types of business employing 24.3 million people.
According to new government figures they are turning over £3.3 trillion, while the number of private sector businesses is approaching the five million mark.
Last year saw record levels of these businesses in the UK, while there are 4.9 million of them in the latest government report.
Business secretary Vince Cable says: “The figures are a timely reminder of the number of people willing to try their hand at business.
“They also show an encouraging regional story with the figures for the North West and Yorkshire and the Humber particularly positive.”
Where do SMEs fit in?
SMEs are also experiencing a dramatic rise and are impacting the economy accordingly as their significance grows.
The majority of the 4.9 million businesses which featured in the study were SMEs, with these companies specifically employing 14.4 million people and enjoying a turnover of £1.6 trillion.
While those with less than 50 staff account for nearly half of all businesses, showing their importance to economic recovery.
The recession has hit hard with many companies being forced to implement corporate recovery strategies or company voluntary arrangements, but now the future looks a lot brighter.
Enterprise minister Matt Hancock has revealed that business growth has increased by ten per cent since 2010 and said that Britain is “turning a corner”.
“There is much more to do, not least to make it easier to employ people and create jobs, like with the new £2,000 Employment Allowance that from April will cut tax on jobs in every company, large and small,” he added.
The Employment Allowance will put a discount on an employer’s national insurance bill, which is predicted to assist 450,000 small businesses.
By Phil Smith