UK Start-Ups Lead the Way in Job Creation
British start-ups are creating more jobs than the rest of Europe, generating twice as many roles than their German counterparts
New businesses in the UK are creating more employment that any other major European country with British start-ups employing over half a million (553,761) people in 2012, according to a research by Rousseau Associates.
Britain is now the leading European economy for new business employment, significantly ahead of the next biggest employer France at 398,521 and more than twice the amount of the next two leading countries, Germany and Norway – 346,556 and 17,310 respectively.
The report attributed British start-ups’ employment growth to their “ambition and scope” as well as the introduction of the National Insurance (NI) employment allowance and under 21s NI exemption. As the changes to NI have reduced the cost of a business hiring its first employee and enabled employers to reduce their national insurance bills by up to £2,000 a year.
Business development director at Rousseau Associates, Michael Heath, commented on the report:
“These figures are really encouraging for UK plc. They show that the current wave of start-ups in the UK are very much more than one-man-bands starting up in response to job losses during the recession. They are aiming for much more than simply to replace a lost wage.”
“Our start-ups are being driven by ambitious risk-taking entrepreneurs. The levels of job creation are indicators that many start-ups have a clear strategic vision and the goal of developing into successful businesses of some size.”