Fresh data from the Department for Business, Energy and Industrial Strategy (BEIS) indicates that the number of privately-owned businesses operating in the UK has now hit a new record high.
Record creation rates Data released in 2015 suggested that almost half of UK adults want to start a business. In this poll, 45% of adults surveyed said that consumer spending habits and improving lifestyle conditions would put them at an advantage if they chose to start their own company. Also Brexit has devalued the Pound, bringing new opportunities for small firms who operate in sectors such as export and tourism.
Within this environment, BEIS’ latest numbers suggest, more Britons are seeing the benefits of starting their own businesses. There are now 5.5m privately owned companies operating in the UK, establishing a new record. Also, the government notes that the number of small, medium and large firms in this country rose by a million, 4,000 and 900 respectively from 2010 to the start of this year.
The total number of companies increased by a significant 23% since 2010. Commenting on these findings, UK Small Business Minister Margot James said: “There are a million more small businesses now and it’s important to recognise the great contribution they make to local communities and the national economy.” Small firms comprise the vast majority of businesses in every main British industry.
Helping small firms
Concurrently, Ms James shed more light on the upcoming creation of a Small Business Commissioner. In July 2015, Whitehall announced that it will create the position of Small Business Commissioner, who will help small firms deal with larger companies when it comes to issues such as late payments. According to Simply Business, late payments have deprived small businesses of roughly £26bn.
The post of Small Business Commissioner remains vacant. Ms James revealed that Whitehall will establish a new consultation process examining how the Small Business Commissioner will operate. Elaborating, she said that “the consultation will look at how the commissioner will operate and handle complaints.”
When the Commissioner initiative was floated, it was met with a mixed response. During this consultation, Whitehall is inviting businesses of all sizes to weigh in on a range of related issues, from criteria for lodging complaints with the Commissioner, to recommended actions for complaints. Going on, Ms James was quoted by Business Advice saying: “The government wants enterprise to thrive. The Small Business Commissioner will be a strong representative for small firms across the country.”
Advantageous environment
It is clear that the government remains committed to ensuring British small businesses thrive. As the role of the Small Business Commissioner is increasingly defined, more adults may decide to create their own firms. If you pursue this option, you may wish to form a limited company, as this can provide stronger protections for your personal finances. As a Company registration agent, Turner Little can advise you on limited company formation, ensuring you can start building a successful business.
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Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
