Small and medium-sized enterprises (SMEs) have been responsible for creating 15.6 million jobs this year, up from 15.2 million, analysis by the Forum of Private Business (FPB) shows.
Figures from the Office of National Statistics show an estimated turnover of £1.8 million for SMEs with around 47.2% generated from the private sector. Historical trends predict a further 65% increase in job creation 65% by SMEs over the next decade.
The number of unregistered businesses without employees has also risen to 3 million, or 56% of the business population.
The FPB highlights the potential differences in productivity levels between non-employers and employers. For example, a non-employer with a turnover of £53,000 per person is less when compared to an SME employer with a turnover of £135,900.
A VAT registered non-employer’s turnover, however, was £118,000 compared to £108,000 for businesses with less than 10 employees.
Nigel Holland from Holland & Co Chartered Accountants said:
“ It is very important that as a country we encourage enterprise because this is what creates jobs and drives our economy. I am 100 percent in favour of small businesses because without them we would be lost.
Red tape is a massive hindrance to free enterprise and we should try to reduce red tape to a minimum. At my firm we often see clients who are prepared to give it a go and set up their own business. Not all of them succeed however it is great to see these people take the risk and try to generate an income for themselves and their family.”