SMEs driving job creation
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.
Ian Cass, managing director of the FPB, said:
“We need a business infrastructure that rewards business owners who employ and support their local community, not one that demotivates them with new ways to shuffle paper or methods to punish them for running their business as efficiently as possible.”
“Getting more businesses to employ, export and grow quickly when the opportunities arise are crucial to creating a better living standard for all, not simply the business owners or their employees.”
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