News

September 14, 2012

Small firms play big part in providing jobs

New findings from the Federation of Small Businesses (FSB) show that almost nine in ten (88%) unemployed people that find jobs in the private sector either start up or work for an SME.

Data tracked since the onset of the recession in 2008 shows that 88% found work in a small business, with a quarter (24%) working in micro businesses, 27% joining a small firm and 17% starting their own business.

The FSB commissioned the Westminster Business School to produce the report, looking at employment trends over a 15-year period. It tracked the Labour Force Statistics to see where the unemployed and inactive find work. An FSB report — Back to work: the role of small businesses in employment and enterprise — will be released on 20 September ahead of the Lib Dem conference.

John Walker, FSB national chairman, said: "The numbers speak for themselves — small firms are responsible for creating the majority of jobs and are more likely to take on people out of work, including those that have been out of work for some time."

The FSB is calling for the Government to review its current National Insurance Contributions holiday to allow more small firms to take on staff. It says that by allowing more small businesses to take advantage of the scheme, more jobs could be created. And these could be full-time jobs at a time when many people are taking on part-time work.

John Walker said: "In the current economic climate, with costs increasing and cashflow tight, small firms need all the help they can get. Giving people the ability to start their own business and small firms the incentive to take on staff through extending the National Insurance Contributions holiday will help to boost economic confidence and growth, which is vital."