UK Small Business Population Hits Record 5.4 Million
Small and medium companies now generate over £1 trillion to Britain’s economy according to the latest government statistics
The UK’s small business community has exploded according to the latest government statistics, which noted a record high 5.4 million private-sector firms this year – a 146,000 increase on 2014.
And, according to the Business Population Estimates report, small and medium enterprises currently generate over £1 trillion turnover to the UK economy.
In total small and medium businesses make up 99.3% of the entire UK business population, and the reported 146,000 growth – which is the net annual change, and accounts for start-ups and closures – indicates that more businesses launched this year than closed.
The data also found that there has been a rise in medium-sized businesses (50 to 249 employees) and sole traders in 2015. There are now 1,000 more medium enterprises recorded at the start of 2015 than in 2014 and the number of sole proprietors now stands at 3.3 million (62% of the total).
The rest of the overall business population in the UK is made up of 1.6 million companies (30%), and 436,000 ordinary partnerships (8%).
Business minister Anna Soubry commented on the findings:
“It’s fantastic news there are now a record number of businesses in the UK, creating jobs and ensuring our country’s economic security.
“Our long-term economic plan has helped create the conditions for businesses to start, grow and flourish. But with risks in the global economy, this government is determined to continue to back our businesses and grow our economy.”
James Layfield, CEO of Central Working, added:
“Small and medium enterprises are still delivering over half of all private sector employment opportunities. It’s important that we don’t lose sight of this community’s economic contribution as their impact on job and wealth creation cannot be underestimated.
“With combined small and medium business turnover increasing to £1.8 trillion, it’s clear to see that our entrepreneurs are thriving. This is a testament to the quality of small businesses being established in the UK, their ideas and people in particular, and also to the wealth of resources on offer to assist this community. This is the era of the growing business, and it’s vital that we keep up the momentum to encourage aspiring entrepreneurs to take the leap.”