The revival of the small business sector in the UK

Résumé du document

According to data from Labour Market Trends in 1999, enterprises with fewer than 50 employees provide 45% of UK non-government employment and account for 38% of turnover, the employment figure includes the self-employed who employ no one and comprise 2.3 Million out of a total of 3.7 million of small firms. There are considerable sectoral variations in the importance of small firms: for example, in agriculture, forestry, fishing and construction they account for nearly all employment; in hotels, restaurants and catering for about a half; and for a minority in manufacturing (29%) and financial intermediation (16%). ‘Micro businesses' (0-9 employees) account for 94% of all businesses and for 28% of employment. Organisations with 10-99 employees add a further 5 percent of all businesses, which account for 22% of employment . While the Small firms account for a large part of the working population, they have not always been spoilt by British Politics. During the main part of the 20th century, there were seen as impediment to economic modernisation. This indifference began to change in the mid 70's and by the mid 90's the commercial landscape had been transformed by a host of policies designed to assist small firms. This political neglect, which is by far less effective, has many reasons.

Extraits

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[...] FSB website, www.fsb.co.uk, history since “Don't go soft on shoplifters, FSB tells government” (November 2006); could you convince small businesses you are on their Tony Blair and Michael Howard views, (election 2005); welcomes proposed changes to planning (December 2006). Grant Jordan, Darren Halpin, “Olson Triumphant? Recruitment Strategies and the Growth of a Small Business Organisation”, Political Studies, (2004:52). Mariah Maher and Michael Wise, “Product Market Competitions and Economic Performance in the United Kingdom”, OECD, Economics department working paper n°433, www.oecd.org/eco (June 2005). McKinsey and Company, Driving Productivity and Growth in the UK Economy, Food Retailing Sector, www.mckinsey.com/mgi/publications/uk.asp (October 1998). Timothy May and John McHugh, “Small Business Policy: A Political Consensus?”, Political Quarterly, (2002). [...]

[...] Organisations with 10-99 employees add a further 5 percent of all businesses, which account for 22% of employment[2]. While the Small firms account for a large part of the working population, they have not always been spoilt by British Politics. During the main part of the 20th century, there were seen as impediment to economic modernisation. This indifference began to change in the mid 70's and by the mid 90's the commercial landscape had been transformed by a host of policies designed to assist small firms. [...]

[...] Michael Moran, Business and Politics in Britain, course notes, (The University of Manchester, 2006). George Osborne MP, “George Osbornes launches new proposals to champion the need of Small Businesses”, www.conservatives.com, (22/08/2006). Small Business Service website, www.sbs.gov.uk, “About David Storey, Understanding the Small Business Sector, (International Thomson, 1994). Timothy May and John McHugh, “Small Business Policy: A Political Consensus?”, Political Quarterly (2002), p 84. P K Edwards and MW Gilman, “Industrial relations and SME's: The European Industiral Relations Observatory Michael Moran, Business and Politics in Britain, (The University of Manchester, 2006) Bolton, J.E., “Report of the Commission of inquiry on Small Firms”, (1971), p 93. [...]

[...] The productivity of the UK retail sector falls short of the levels in most comparable countries such as France and Germany. A possible explanation for this is that compared with the United States and other large European countries, the United Kingdom still has a higher proportion of food retailing by smaller stores with a lower level of productivity. In addition, even the larger stores are small by international standards. It is often claimed that there is a cost for consumers due to the decline of traditional retailing, offering specialisation or location convenience[32]. [...]