Small Businesses contribute to Economy’s Continued Growth
Government Growth Dashboard shows increase in small and mid-sized business turnover and profit in 2014
The government’s Growth Dashboard report has revealed improvements in the economy and employment in 2014, with small and mid-sized businesses accounting for 60% of employment and 47% of total turnover.
Private sector employment was up 2.2 million and Gross Domestic Product (GDP) increased by 3% over the year. Furthermore the UK is the top EU country for attracting exports, with business investment growing by 26.1% from 2010 to 2014 and forecasted export growth of 2.4% in 2015.
The study, released by the Department of Business, Innovation and Skills (DBIS), included reports by the Federation of Small Business that revealed small firms (less than 50 employees) witnessed a rise in both turnover and profit in 2014.
In regards to sectors, the service industry contributed the most economically, accounting for 77% of the UK’s total output, followed by manufacturing (10%), construction (7%), production (1%) and agriculture (1%).
Despite an overall positive forecast for 2015, small and mid-sized businesses biggest concern for 2015 was the economic climate (16%), followed by legislation and regulation (12%), late payment causing cashflow issues (9%), and finally access to finance (7%).
View the Growth Dashboard here.
