Small Business Sector (Hansard, 5 December 2002)

§ 18. Patrick Mercer
To ask the Secretary of State for Trade and Industry if she will make a statement on the prospects for the small business sector. [83620]

§ Nigel Griffiths
Small businesses play a vital role in the UK economy, contributing around £1 trillion each year. They provide new ideas, products and services and, most significantly, jobs. There are 3.7 million UK businesses and on average 998 of every 1,000 of them are small or medium sized.
Prospects for the sector are encouraging, for example: The UK small business population has risen by over 50 per cent, since 1980. There is now one small business or sole trader for every 13 adults in the UK. Latest survival rates show that over 91 per cent, of businesses are now surviving one year after registration, with 65 per cent, surviving three years after registration. Only 1.1 per cent of active companies became insolvent in the 12 months ended Q3 (July to September) 2002. The SBS Omnibus Survey (2001–02) shows that the vast majority of small businesses are quite optimistic—over 80 per cent, of small firms say they are doing "very well" or "well". The Global Entrepreneurship Monitor 2001 also shows that the UK has a supportive environment for business start up and growth.

§ 24. Mr. Hoban
To ask the Secretary of State for Trade and Industry if she will make a statement on her policy on the small business sector. [83626]

§ Nigel Griffiths
The aim is to accelerate the drive towards ensuring the UK is, by 2005, the best place to start and grow a business and wheremany more people want and have the opportunity to start a business; everyone with the ambition to grow is helped and supported; small businesses find it easy to respond to Government and access its services.
Following DTI's recent cross-cutting review of business support, SBS' role has been re-focussed and enhanced, in particular it will: be a centre of expertise for Government on small business issues; be an innovator, pioneering new approaches across Government to meeting the needs of small business through better policy and high-quality services; and be an engine for change, demonstrating what can be done, measuring progress against outcomes in the market place, and taking action, at national, regional and local levels.
SBS has developed a new framework for policy towards small business, which is based upon the key drivers for economic growth—improved productivity and a wider involvement in enterprise for all.
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The framework is built around seven themes, SBS is working with all its partners to build these into seven national strategies, which are:

1. to build an enterprise culture.

2. to encourage a more dynamic start-up market.

3. to build the capability for small business growth.

4. to improve access to finance for small businesses.

5. to encourage more enterprise in disadvantaged communities and under-represented groups.

6. to improve small businesses' experience of Government services.

7. to develop better regulation and policy.