§ Mr. Ashdownasked the Paymaster General what steps have been taken in his Department to improve the reliable collection of data concerning the small business sector; and if he will make a statement.
§ Mr. TrippierThe Department recognises the importance of reliable data concerning the small business sector. However, any special large-scale exercise to collect information would be expensive and would represent an additional burden on those who run small firms.
We are therefore considering what more can be done by using existing sources of data, both official and nonofficial. We intend to strike a balance between our need for better information and the need to avoid increasing the burdens on small businesses.
§ Mr. Gordon Brownasked the Paymaster General (1) what is his estimate of the proportion of small businesses formed since 1979, which after (a) one year and (b) two years were or are employing 10 or more workers;
(2) what is his estimate of the average number of jobs that has been created by small businesses formed since 1979;
(3) if he will provide a regional breakdown of the number of jobs created by small businesses since 1979.
§ Mr. Trippier[pursuant to his reply, 11 November 1985, c. 54]: I regret this information is not available. The Department's monitoring of small busineses is based on information collected for the routine administration of VAT which does not include details of the numbers employed by the business.
§ Mr. Gordon Brownasked the Paymaster General what is his estimate of the proportion of small businesses formed since 1979 which were or are still trading after (a) one year and (b) two years.
§ Mr. Trippier[pursuant to his reply, 11 November 1985, c. 54]: Our study of failure rates in each year following start up of a business (derived from the life span analysis of all-VAT registrations between January 1974 and December 1982) suggests that on average one in 10 of small firms will fail in the first year of their existence. The figure rises to just over one in five within two years.