Small businesses on the rise

The number of small and medium-sized enterprises in existence in the UK reached an estimated 4 million last year, according to the latest statistics from the Department of Trade and Industry.

This compares with around 3.8 million in 2002, and represents the highest year on year increase since records began 10 years ago.

Of the 4 million, 99.2% were small businesses, with 0-49 employees, and 26,000 (0.6%) were medium-sized firms with 50-249 employees.

SMEs accounted for more than half of the employment and turnover in the UK.

The number of businesses without employees was 2.9 million at beginning of 2003, with an estimated turnover of £178bn.

Meanwhile, the 1.2 million businesses with employees had an estimated turnover of £2,063bn.

Enterprise Minister Nigel Griffiths welcomed the news.

'Small and medium-sized businesses are the engine room of the economy.'

'I want to build upon this success by delivering on the Government's Small Business Action Plan and continuing to listen to the needs of entrepreneurs across the country', he added.