Small British businesses set to create 1.9m new jobs

21st August 2014

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With the UK’s economy getting back on track business confidence is on a roll as new research shows that small firms across Britain are looking to take on a raft of extra recruits this year.

According to research from general insurer Direct Line for Business, small and micro businesses are collectively set to take on a massive 1.9m additional staff, with some 400,000 home based businesses looking to take on their very first employee.

The analysis found that new employees joining small and micro businesses this year will work on average 28 hours a week and those looking to hire their first employee will expect the role to require less hours – at 21 hours a week – this year.

As such small and micro businesses are planning to pay new staff on average £14,405 a year while self-employed businesses will start new staff on £10,795 a year. Not only will the country benefit from these jobs but they will also create an average of more than £27bn in wages concluded the research.

Jasvinder Gakhal, head of Direct Line for Business said: “Small businesses are the lifeblood of our economy, employing millions of people, and our research shows that they are set to contribute significantly this year. With positive signs of economic growth, many businesses will want to take advantage by expanding– often by increasing headcount.”

On a regional basis, London was the most proactive in terms of plans to take on extra staff. Two in five, at 41%, small and micro sized businesses are planning to take extra staff this year. The South West was second with 35% and the North West with 31%. The study also found that British female small business owners are far more likely to recruit extra employees this year compared to men. A third, 33%, of small businesses run by women will look to recruit extra staff this year compared to just 26% of male business owners

Percentages of micro businesses* planning to take on employees this year
Region Small and micro-businesses
London 41%
South West 35%
North West 31%
East Midlands 30%
Scotland 30%
Wales 29%
Eastern 29%
South East 26%
West Midlands 26%
Yorkshire and The Humber 19%
North East 15%
Britain 29%

 

 

 

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