Small business owners give economy £1bn boost

Date: 16th September 2008

Small business entrepreneurs contribute more than £1 billion to the British economy each year, it has been revealed.

Hiscox's entrepreneurial domestic production index has measured that every small business owner in the UK tallies 2,500 hours of work annually - over 700 hours more than employees in larger companies.

The same index also discovered that small business owners contribute 37 per cent to British economy. Despite these impressive statistics, there are pitfalls to starting your own enterprise, such as organising company accounts.

Steve Langan, UK managing director at Hiscox, said: "Being your own boss can be a liberating experience, but with freedom comes risk.

"So many entrepreneurs put their homes, finances and even personal lives on the line when they first start out."

Nearly 60 per cent of small business owners in the study also stated that the most attractive prospect when starting their own enterprise is being their own manager.

Statistics published yesterday showed that 80 per cent of small to medium sized businesses expect to grow in the next year.