SMEs are vital to the success of the UK economy and job creation.
New research conducted by the Institute of Public Policy Research found that
• Small businesses and the self-employed were responsible for creating of 80% of jobs in the past three years (to the end of 2013).
• Between 2008 and 2011, 88% of individuals moving from unemployment, found work in an SME or self-employment
Employment aside, SMEs have other vital roles, too. They:
• Provide services to the local community
• Have the flexibility to respond quickly to challenges
• Introduce new ideas and innovations as start ups
• Cater for limited and niche markets
• Drive the cost to consumers down, by having low overheads
• Spur competition among other businesses
However, this is not to say that Small Businesses are always successful.
In fact, government statistics show that 70 – 80% of business start-ups don’t survive 10 years. And of those that do survive, 75% who had fewer than 5 employees when starting up, will still have less than 5employees a decade years later.
There are around 200,000 to 250,000 private sector start ups firms each year. Imagine if more of them survived.
The aforementioned report, conducted by the Institute of Public Policy Research suggested some ideas for helping SMEs grow and hire. You can read the full report here.
By Solihull Recruitement company, Tirebuck Recruitment
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