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Small businesses to the rescue

Posted on Jan 5th 2015

According to the Office of National Statistics unemployment fell by 115,000 in October. Since the global financial crisis in 2008 and the threat of collapse of major financial institutions the recovery of the UK economy has been fluctuating and slow.

So, what impact have small businesses had in aiding the recovery and decreasing the unemployment rates alongside larger companies? According to the Federation of Small Businesses at the start of 2014 Small firms accounted for 99.3 per cent of all private sector businesses in the UK, 47.8 per cent of private sector employment and 33.2 per cent of private sector turnover.

During 2012 and 2013 small firms created 68% of all new jobs and this came as a surprise to many even more so once the results had been quantified. High growth small businesses were responsible for the creation of 250,000 new jobs in the UK, lending credence to the view that these businesses were vital to the recovery and creation of new job opportunities in the UK market.

John Allan, national chairman of the Federation of Small Businesses (FSB) said: “These findings underline the critical role small businesses play in the UK economy. Some small firms play a disproportionately large role in creating growth, innovation and new jobs”

So how’s it looking in 2014?

A landmark report from Octopus Investments released on November 6th included the results of a survey of 400 high growth small businesses. One third of these businesses are based in London and the South East and it also highlighted the correlation between the absences of HGSB’s in underperforming regional economies.

The need to nurture small businesses within the UK now is more paramount than ever, a big salute to smaller guys who are making a massive difference to the recovery of the economy.

We salute you!

Interesting Fact: Did you know the term “credit crunch” entered the Oxford dictionary in 2008. A sudeen sharp reduction in the availability of money or credit from banks and other lenders.

Tags: Jobs, Recruitment, Recruiting, SME’s, Employment