FSB: Small firms are the backbone of UK economy

Date: 16th June 2011

Small businesses have been described by one leading industry body as the "backbone of the economy".

The comments come after official labour statistics showed that unemployment fell in the first three months of 2011, with the fall largely attributed to private sector firms.

According to the Federation of Small Businesses (FSB), small firms make up 99 per cent of UK enterprises and employ more than half of the private sector workforce.

A spokeswoman for the organisation said: "Small firms truly are the backbone of the economy so it is vital that small businesses are encouraged to take on staff.

"They have told us that if the government reduced payroll costs they would take on staff. Extending the national insurance contributions holiday to existing firms must be at the heart of government plans for growth if we to continue to reduce unemployment."

Government figures showed that after the fall, unemployment in the UK now stands at 2.43 million.

Posted by Emily Smith