The United Kingdom Department for Business Innovation and Skills announced to today that there was a record 5.4 million businesses in the private sector at the start of 2015. This is an increase of 146,000 since 2014 and 1.9 million more since 2000.
One of the most import growth factors for government is the total number of business that employ people, this rose by 35,000. This takes the number attributed to employment in SMEs (Small to Medium Enterprises) to 15.6 million which is 60% of all private sector employment in the UK. The combined annual turnover of SMEs was £1.8 trillion, 47% of all private sector turnover in the UK.
Business Minister Anna Soubry said: “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.”
The statistics also show that of the 5.5 million businesses, 3.3 million are sole proprietorships, that is a business run by one person. A one person business in todays connected environment could as easily be a window cleaner or a business consultant. The former having little overhead cost and the latter potentially having a very large overhead cost and while not employing people directly, might certainly employ people indirectly. The DBIS statistics show that there were also a considerable number of SMEs operating in the Professional, Scientific and Technical arenas (792,000 or 15%).
All of this is very good news for the UK. The government position on small business seems to be helpful and the statistics demonstrate a continuing growth from 2000 onwards. The full report, Business Population Estimates for the UK and Regions was published on October 14th by the Department for Business Innovation and Skills. The Lead Statistician was Steven White.
