§ Mr. David NicholsonTo ask the Secretary of State for Employment if he will make a statement on the latest information on growth and competitiveness in the small firms sector.
§ Mr. ForthAt the end of 1986 there were an estimated 2.5 million businesses in the United Kingdom; at the end of 1989 there were almost 3 million. The overwhelming majority of these were small; around 95 per cent. employing fewer than 20 people. This growth has continued: in the latest year, 1990, there was a net increase of almost 1,000 a week in the number of businesses registered for VAT.
Small firms continue to make a major contribution to employment growth. Between 1985 and 1989, firms employing fewer than 20 people created over 1 million additional jobs, more than twice as many as larger firms.
The small firms sector continues to improve the competitive edge of the economy by maximising the range of choice available to consumers and by challenging the dominance of existing market leaders.