What drives a small economy? What gives it a kick start when times are tough?
Well, any accountant will tell you that it’s generally small businesses. SMEs are the keystone of every thriving economy. That’s particularly the case in the UK: we’re not known as a nation of shopkeepers for nothing.
Small businesses have been the backbone of our economy for centuries.
So Steven Glicher accountants were pleased to read the latest government figures showing just how well the UK’s small business sector was performing in spite of the faltering economy.
According to the latest statistic from the Department for Business, Innovation and Skills, the UK’s small business sector is thriving. In fact it’s not been in a healthier state for years. The statistics show that the number of UK private sector businesses has increased by 102,000 in the last 12 months alone. The total number of private sector UK businesses now stands at 4.9 million. What’s more, the small and medium-sized enterprise sector now employs 14.4 million people, and has a combined turnover of almost £1.6 trillion. That alone is impressive enough, but when you consider that the combined total of all UK businesses stands at £3.3 trillion, it makes it even more impressive.
The majority of the 4.9 million private sector businesses lie within the SME category, and employ fewer than 250 people. What’s more, those business employing fewer than 50 people account for almost half of all UK private sector businesses and a third of private sector turnover.
Understandably Business Secretary, Vince Cable, claimed the figures were a vindication of current government policies and clearly demonstrated that the coalition government is doing all it can to stimulate the economy and encourage entrepreneurial aspiration. Speaking at the announcement of the latest figures he said:
“Today’s figures are a timely reminder of the number of people willing to try their hand at business. They also show an encouraging regional story with the figures for the North West and Yorkshire and the Humber particularly positive.”
Enterprise minister, Matthew Hancock, added that Britain has seen a 10% increase in the number of businesses since 2010 alone and that the upcoming £2,000 Employment Allowance – effective from April 2014 – will reduce tax on jobs in every company, making it easier to employ and create new job openings, claiming:
“The Government wants to make the UK the best place to start and grow a business. In the autumn it will launch a public campaign to celebrate great British business success stories. The Government wants to inspire other small businesses and point them towards the support that can help them grow.”
How can Steven Glicher accountants help your small business?
Steven Glicher accountants can not only assist you with small business tax advice and general accounting issues: we can assist you with all areas of general business advice. If you have any concerns over starting up or need advice on how to consolidate or develop your small business, then ring us on 0161 485 8007.