The Importance of Small Business the the UK Economy

The importance of Small businesses to the UK economy there are over 4 million businesses in the UK employing from 0 to 50 employees.

Since 2008 they have created the majority of new jobs in the private sector while there have been reductions in both

the public sector and in the head count of many large private businesses such as banks and retail businesses.

Individually the 3.5 million organisations that employ no one but the owners and family members may not appear on your radar as they are so small. However combined together they create around 40% of private sector wealth and economic activity and around 35% of private sector employment.

If you want your local community to be more prosperous then shop local. Research indicates that for every £1 spent at a local business over 64p remains in the local economy whereas if you spend a similar £1 with a national or global company around only 40p stays local.

In many cases small business provide outstanding value and even for consumer goods can have prices for branded products below those in your local national or international supermarket.

They can even offer better value when it comes to services as in most cases the accountant, solicitor, architect, optician that you see will be the owner of the business rather than a hired hand. Someone who understands their reputation is based primarily on the work they do themselves than work done by a junior member of staff.

I would also be surprised if your local business can afford top quality tax and legal advice that ends up with profits either not being taxed at all or enjoying the benefits of some exotic tax haven or even Dublin.

In the case of family businesses, built to last for generations, there is much less likelihood that you will find the levels of fraud and greed seen in some multinational retailers and banks.

Shop local, shop well and do yourself and your community a good deed, not only on small businesses Saturday December 6th but all year round.