According to data from the Enterprise Research Centre (ERC), more than 600,000 new private sector jobs were created last year as the number of small and medium-sized enterprises (SMEs) grew at the fastest rate since the financial crisis hit in 2008.
Fighting the recession
Small Business Minister Anna Soubry commented: “small and medium businesses in every corner of the UK have shrugged off adversity to create jobs and grow”.
SMEs showed remarkable resilience and ingenuity during the recession, creating 13.4m jobs over the past seven years. Over the same period, however, 13m jobs from other sectors were lost, meaning that it wasn't until 2014 that net private sector job creation became positive.
This suggests that, although small business owners and entrepreneurs have worked quickly to create opportunities, there is still a serious amount of instability in the job market on the whole, which must be addressed if the UK is to build upon gains made by SMEs and show consistent economic growth.
Business Secretary Sajid Javid argues that the future will be bright for SMEs, thanks to the new Enterprise Bill, which aims to cut red tape and make it easier for small businesses to succeed and create jobs. Additionally, they will benefit from the introduction of a Small Business Conciliation Service that will deal with payment disputes with larger clients/suppliers.
While we welcome government attempts to reduce the burden on small businesses, Dukes Bailiffs believe SMEs must also be pro-active in improving their cash flow and maintaining stability while the economy revs up to full power. Making small structural changes can make a big difference. In particular, ensuring invoices are sent promptly and that they contain clear payment information, showing the risk of interest charges and legal action in the event of late payment, is vital.
If Britain’s SMEs can match their vision with this kind of prudent planning, we’re confident that the ERC’s growth record will be broken many more times in the near future.
For further assistance developing your payment processes and recouping unpaid debt, contact a Dukes Bailiffs advisor today.