Entrepreneurial spark is alive and well

Statistics showing an annual boost of 146,000 new small businesses to the UK economy is a sign that the entrepreneurial spark is alive and well according to a small business group.

The figures on the Business Population Estimates released by the Department for Business, Innovation and Skills show the total number of small businesses has reached a record 5.35 million.

John Allan, National Chairman for the Federation of Small Businesses, said: "These figures underline the importance of small businesses as creators of employment and growth. They make up 99.3 per cent of all businesses in the UK, generating £1.2 trillion in turnover and accounting for 48 per cent of private sector employment.

"The increase in small business numbers shows that the entrepreneurial spark is alive and well in the UK. The key is to continue to encourage people to take the plunge and set up their own business by providing business support that will help them grow and meet their aspirations.

"Small business confidence will be crucial in driving the economy and job creation. To do this, they need further reassurance from Government and policymakers that they will back them, rewarding their risk taking while minimising the burdens that will hinder their growth."

This will be welcome news to the small business community after recent indications that self-employment has been falling.