HC Deb 12 June 1989 vol 154 cc292-3W
Mr. David Nicholson

To ask the Secretary of State for Employment how many small businesses have been set up since May 1979; and what is his estimate of the number which have survived.

Mr. Cope

During the eight years from the end of 1979 to the end of 1987, there were an estimated 1,416,000 new registrations for VAT. The percentage of new businesses still registered for VAT after two years is estimated to be 74 per cent.

Mr. David Nicholson

To ask the Secretary of State for Employment whether he has any estimates of the number of jobs created by the factoring business in respect of the role in financing small businesses throughout the United Kingdom; and what advice his Department is able to give to companies seeking guidance on the merits of factoring as distinct from bank loans.

Mr. Cope

We have no estimate of the number of jobs which may have been created or supported by the factoring business. Our small firms service gives advice on all matters affecting small businesses, including where applicable the possibility of factoring. Basic advice on the possibilities of factoring as a method of improving cash flow is also given in the booklet "Prompt Payment Please". The appropriate method of raising finance including factoring, bank loans, or overdrafts, depends on the circumstances of the individual small business.