Small businesses help creating jobs and enhance growth for Britain’s economy. Michael Adetona, Managing Director at Fire Edge Ltd Manchester, supports the FSB’s call for more support and easier regulations in order to boost the UK’s economic recovery.
According to the Federation of Small Businesses’ national chairman John Walker, over four million people in the UK are either self-employed or run their own business. “Although the single European market gives them access to 500 million customers and 23 million businesses”, he says, “the burden of regulation – with around half emanating from the European Union itself – falls disproportionately on the smallest firms” (nebusiness.co.uk). Business Owner and Managing Director Michael Adetona confirms that small businesses are vital for the recovery of the country’s economy. “It is crucial to make processes easier in order to enhance growth, create new jobs, opportunities and support for local communities”, says Michael Adetona at Fire Edge Ltd Manchester.
In the UK 99.2% of businesses have less than 50 employees and, according to the United Kingdom Standard Industrial Classification of Economic Activities (SIC), there are 728 different types of businesses (fpb.org). “These figures demonstrate how much impact small businesses have on our economy. It is extremely important to keep those businesses alive and encourage even more people to become entrepreneurs, considering the diversity small businesses create for Britain’s economy”, says Michael Adetona at Fire Edge Ltd Manchester. Small businesses in Britain employ 46.2% of the country’s workforce and contribute 24.9% to the UK’s wealth (fpb.org).
Due the decisive impact of small businesses, the FSB is of the opinion that the Government and the European Union should ensure that they receive the best support. According to the UK Government, around half of Great Britain’s regulations come directly from Brussels (nebusiness.co.uk). “Processes could be simplified and remedies made more affordable”, says Michael Adetona at Fire Edge Ltd Manchester. Small businesses are disproportionately affected by regulation. In order to keep up with compliance, regulations can cost small businesses ten times as much per employee as it costs a large company (gov.uk). Michael Adetona adds: “Small businesses however may have fewer resources while big corporations in comparison might be in the position to hire financial advisors or expensive lawyers to deal with the complex regulations in order to remain compliant.” Underlining the importance of small businesses for Britain, the UK Government is now pressing the EU’s decision making institutions to look at the impact of their legislation on businesses. Furthermore, the European Parliament has set up an impact assessment unit that will assess amendments the Parliament makes to proposed laws (gov.uk). “We sincerely hope that the existing barriers will soon be abandoned”, says Michael Adetona, “and clearer regulations will encourage many entrepreneurs to help Britain’s economy to a rapid growth.”