Small businesses vital to reducing unemployment

Small businesses and start-ups are often turned down for bank credit, but invoice finance is a solution which can often help

Approximately nine in 10 unemployed people find work in the private sector either by working for a small company or starting their own business, research commissioned by the Federation of Small Business (FSB) had revealed.

Almost one quarter were employed by a micro business, 27% got employment through a small firm, whilst 17% set up their own company.

Following the publication of the survey results, the FSB has urged the government to consider amending its National Insurance Contributions holiday to allow small businesses to employ more workers.

The FSB’s national chairman, John Walker, felt that small firms are crucial to increasing employment levels and creating the vast majority of jobs: “In the current economic climate, with costs increasing and cash-flow tight, small firms need all the help they can get.”

He continued, “Giving people the ability to start their own business and small firms the incentive to take on staff through extending the National Insurance Contributions holiday will help to boost economic confidence and growth”.

The survey, conducted by Westminster Business School, backs up similar findings found by a European research group last week.