UK start-ups creating more jobs than any other EU economy
11th May 2015 | News
Britain-based start-ups are creating more jobs than their entrepreneurial counterparts in all other major European economies, according to a new report by Rosseau Associates.
In particular, UK start-ups are creating twice as many jobs as SME owners in Germany, with more than half-a-million (553,761) people employed by the 242,400 new businesses born in the UK in 2012.
Europe’s next biggest employer was France with 398,521 new jobs created – significantly less than the volume of British start-ups formed – with the report claiming it evidences the nation’s “ambition and scope”.
The report also demonstrates the positive impact of the National Insurance (NI) employment allowance – introduced last year – which enables employers to reduce their NI bills by as much as £2,000 per year.
The allowance has helped minimise the cost of new businesses hiring their first employee, while the NI exemption for staff aged under 21 gives start-ups an opportunity to give promising youngsters a platform to develop a career.
Michael Heath, business development director, Rousseau Associates, said: “These figures are really encouraging for UK plc.
“They show that the current wave of start-ups in the UK are very much more than one-man-bands starting up in response to job losses during the recession.
“They are aiming for much more than simply to replace a lost wage. Our start-ups are being driven by ambitious risk-taking entrepreneurs.
“The levels of jobs creation are indicators that many start-ups have a clear strategic vision and the goal of developing into successful businesses of some size.”
An alternative report from Lloyds also demonstrated that private business is ‘booming’ across England and Wales.
According to the study, the north-east of England has become the fastest-growing region followed by London, the south-east of England and the West Midlands.
The survey also reveals that job creation is highest in the East of England, while hiring is on the rise in the north-east and north-west of England and Wales.
Katja Hall, deputy director-general, Confederation of British Industry (CBI), said: “The Government must get into its stride quickly [post-election].
“It should set out clear plans for the next Parliament within the first 100 days and have a laser-like focus on delivery.”