ACS

Last week, The Department for Business, Enterprise and Regulatory Reform (BERR) revealed the results of its 2006/07 Annual Small Business Survey of 10,000 small firms. It showed that almost half of small businesses said they were producing new products and offering new services, and that 65% of respondents with employees said they had ambitions to grow. However, a study carried out by the European School of Management (ESM), has claimed that small business growth is in decline. In its provisional report, the ESM said that the proportion of businesses achieving an annual turnover in excess of £1 million in their first five years has fallen dramatically from 29% in 1998 to 16% in 2006.

According to the ESM more than 4.4 million small businesses registered in 2006, an increase of 600,000 businesses since 2001. Despite this rise EMS has stated that many firms struggle because of the cost of complying with employment red tape increases with business growth. The Forum of Private Business believes that the reason for this increase in ‘new' firms is more to do with greater numbers of micro businesses and self-employed people officially registering, rather than a surge in new start-ups, as claimed by the then Competitiveness Minister, Stephen Timms, earlier this year.

BERR's survey also showed that women continue to be significantly under-represented in enterprise, with only 14% of small businesses with employees led by women.
Last week, The Department for Business, Enterprise and Regulatory Reform (BERR) revealed the results of its 2006/07 Annual Small Business Survey of 10,000 small firms. It showed that almost half of small businesses said they were producing new products and offering new services, and that 65% of respondents with employees said they had ambitions to grow. However, a study carried out by the European School of Management (ESM), has claimed that small business growth is in decline. In its provisional report, the ESM said that the proportion of businesses achieving an annual turnover in excess of £1 million in their first five years has fallen dramatically from 29% in 1998 to 16% in 2006.

According to the ESM more than 4.4 million small businesses registered in 2006, an increase of 600,000 businesses since 2001. Despite this rise EMS has stated that many firms struggle because of the cost of complying with employment red tape increases with business growth. The Forum of Private Business believes that the reason for this increase in ‘new' firms is more to do with greater numbers of micro businesses and self-employed people officially registering, rather than a surge in new start-ups, as claimed by the then Competitiveness Minister, Stephen Timms, earlier this year.