According to the Department of Business, Innovation and Skills, there are a record 5.4 million private sector businesses operating throughout the UK, with small firms responsible for 48 per cent of all private sector employment, while contributing a whopping £1.2 trillion to the economy.
According to the latest Business Population figures from the department of Business, Innovation and Skills, self-employment is incredibly popular, with the number of businesses that employ people increasing for the second year in a row, with 35,000 more in work at the start of 2015 than 2014.
More people set up a small business this year, with 1,000 SMEs that employ between 50 and 249 people, created between 2014 and 2015.
Take a look at this graph that shows which areas contain the most SMEs.
The distribution of SMEs in the UK is clearly unevenly distributed, with London and the South East of England having considerably more businesses than any other UK country or region of England. In total, there were 4.7 million private sector businesses in England, 340,000 in Scotland, 213,000 in Wales, and 117,000 in Northern Ireland.
The figures also revealed that:
- The number of small employing businesses grew by 18 per cent.
- The number of medium-sized employers grew by 21 per cent.
- The number of large businesses fell slightly by 200 (-3 per cent), which will be partly explained by mergers and takeover activity.
- Total employment in SMEs increased from 15.2 million at the start of 2014 to 15.6 million in 2015, with the majority of the increase being in employing businesses rather than businesses only employing the owner.
‘Government is determined to grow the economy’
Small businesses are the backbone of the UK economy, representing 99.3 per cent of all businesses and generate over £1 trillion turnover for the UK’s economy.
Business minister Anna Soubry was delighted with the latest figures, stating that the Conservative’s economic plan is starting to take shape.
‘‘It’s fantastic news there are now a record number of businesses in the UK, creating jobs and ensuring our country’s economic security,’’ explained Soubry.
‘‘But with risks in the global economy, this government is determined to continue to back our businesses and grow our economy.’’