Analysis of recent research published by the Office for National Statistics (ONS) highlights the importance of UK SMEs within the private sector according to SimplyBusiness.co.uk.
The Business Population Estimates for the UK and Regions 2010 issued by the Department for Business Innovation and Skills illustrate that:
99.9% of the total enterprises in the UK are SMEs SMEs provide 59.1% of the jobs in the private sector SMEs generate 48.7% of the turnover of the private sector
Jason Stockwood, CEO at Simply Business, commented:
“This research clearly confirms the importance of SMEs in the UK private sector – particularly in terms of the number of jobs they provide. They really are essential to our economy.”
The government have shown support to SMEs in the form of schemes to assist in terms of access to finance, grants and loans including the Enterprise Finance Guarantee scheme and the Enterprise Capital Funds scheme.
Jason Stockwood said:
“These schemes are a step in the right direction, and do show commitment from the Government to support our SMEs. However the current economic conditions mean that SMEs are likely to continue to face challenges in the coming months.”
The research from the ONS also shows:
As a region, London provides employment to the most people (15.8%) and has the biggest contribution to turnover (30.5%). The South East has the largest number of enterprises (16.3% as compared to London’s 15.8%). In terms of industry splits, whilst construction accounts for 20% of all enterprises in the UK, Wholesale and Retail Trade employ the largest percentage of people (21%) and make the biggest contribution to turnover across all industries (37% - estimated at £1,186 billion).