Small Businesses to Boost Economy by £27bn
Small firms plan to create 1.9 million new jobs, with 400,000 home-based companies looking to recruit first employee
Small businesses and home-based businesses could potentially generate £27bn for the economy as new research reveals they are on track to create 1.9 million new jobs this year.
The report, released by Direct Line, found that of the small and micro businesses planning to take on staff – 400,000 are home-based businesses who will be employing their company’s first employee. The report comes following a new government package to facilitate home-based businesses’ growth, which includes altering planning and business rate laws.
On average, small and home-based businesses plan to recruit staff on a part-time basis (21 to 28 hours a week) and provide incomes that range between £10,796 (small and micro businesses) and £14,405 (self-employed businesses) a year. The report also revealed that female business-owners were more likely to hire new staff than male, with 33% of small businesses run by women looking to hire compared to 26% of those owned by male entrepreneurs.
On a regional basis, London had the largest number of small businesses planning to recruit at 41%, followed by the South West at 35% and then the North West at 31%. Britain’s small business planned hiring rate average was 29% with only two regions falling below 20%, Yorkshire and Humber at 19% and the North East at 15%.
Head of Direct Line for Business, Jasvinder Gakhal, discussed the research:
“Small businesses are the lifeblood of our economy, employing millions of people, and our research shows that they are set to contribute significantly this year.
“With positive signs of economic growth, many businesses will want to take advantage by expanding– often by increasing headcount. However it is crucial that business owners fully appreciate their responsibilities to ensure that adequate protection is in place should anything happen to threaten what they have worked so hard to achieve.”
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