Small businesses make up over 99% of all enterprises in the UK, according to the latest figures released by the government.
The Department of Business, Enterprise and Regulatory Reform (DBERR) yesterday published statistics for small and medium-sized business activity in 2006.
Last year saw an increase of 2.9% in the number of UK businesses, making a total of 4.5m enterprises. Of those, 99.3% were made up of firms with fewer than 50 employees.
The figures also showed that small businesses accounted for 47% of all UK employment and nearly 40% of turnover.
Sole traders make up 73% of all UK businesses, according to the figures – there are 3.3m self-employed owner-managers with no employees, turning over an estimated £208bn per year.
“We’re forever hearing how risky it is to start a business and while it's undoubtedly a huge undertaking, a growth in the business population combined with a steady start-up rate shows more people than ever before are surviving those difficult early months or years,” said Matt Thomas, editor of Startups.co.uk.
“Our prospering start-ups, sole traders and small business owners are providing a much-needed shot in the arm for the UK economy and, just as importantly, are proving that starting your own business is now a viable career option for school leavers, city bankers, single mums and retired couples alike.
“With technology enabling people to run global companies from their kitchen tables and bank lending on the increase I see no reason why this very healthy trend shouldn't continue.”
© Crimson Business Ltd. 2007
