Despite the news that we may be moving out of a recession, surely now is not the time to start a new business. But a new series starting on Radio 4 called A Small Business says this might just be the time.
The Federation of Small Businesses has produced statistics saying that 120 small to medium sized businesses (SMEs) are closing every day. But for every one that closes, 11 new ones start up. This works out at nearly 500,000 new SMEs in 2009.
The majority are one person businesses, not scared of taking a risk, taking on little debt and not employing anyone else at the start. They won't have much of an impact on reducing the unemployment numbers!
But why are people taking a risk. Well, there are several possible factors:
- Savings interest rates are so low that people are more willing to take the risk.
- People don't want to work all hours for a lavish lifestyle - a reasonable income to support themselves and time for the family.
- People are afraid that their pensions may not support them so they want to keep working.
- Good deals are available on empty premises and from suppliers.
- Some people have a dream and being made redundant may have been the push they needed.
Of the 4.7 million firms in the UK, only 6,000 are big businesses and SMEs employ nearly 60% of the workforce - shopkeepers, taxi firms, hairdressers, plumbers etc.
To listen to the radio programme, click on the link below:
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