A nation of small businesses

Government statistics have revealed that there were an estimated 3.7 million active businesses in the UK at the start of 1999, including 2.3 million who were sole traders or partners without employees.

The 'Small and Medium Enterprise (SME) Statistics for the UK 1999' contain a size breakdown of the number of businesses in the UK, from small traders with no employees to those with 500 or more employees. They also show the contribution to employment and turnover made by businesses of different sizes, industry by industry.

The headline information is:

* The stock of enterprises has now been at a similar level for the fifth successive year following falls in 1992 and 1993.

* The business stock is 1.3 million higher than in 1980 (the first year for which comparable figures are available).

* Most of the growth in the business population between 1998 and 1999 has been in the one to four employee category.

* The number of 'size class zero businesses' (no employees) has fallen since the start of 1998 especially in the agriculture, construction and wholesale/retail sectors.

* At the start of 1999, 1.3 million businesses were employers, an increase on the 1998 figures. The increase is mainly due to the rise in businesses with one employee.

* 1998 also saw improved survival rates for businesses.

* Of the entire business population of 3.7 million enterprises, only 24,000 were medium sized (50 to 249 employees) and less than 7,000 were large (250 or more employees).

* Small businesses, including those without employees, accounted for over 99 per cent of businesses, 45 per cent of non-government employment and (excluding the finance sector) 38 per cent of turnover. The 7,000 largest businesses accounted for 45 per cent of non-government employment and 49 per cent of turnover.

* The share of employment provided by SMEs varies greatly from one industry to the next. In construction 84 per cent of employment is accounted for by SMEs while in finance it is only 21 per cent.

* Of the 2.3 million enterprises with no employees, 24 per cent are in the construction sector and 18 per cent in business related services.

The Statistical Bulletin Small and Medium Enterprise (SME) Statistics for the UK, 1999 will be available in September, while some statistical tables can be found on the DTI site.

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Susie Hughes