Small Businesses (Hansard, 15 October 2002)

§ Mr. Wiggin
To ask the Secretary of State for Trade and Industry if she will make a statement on small business growth in the last 12 months. [73962]

§ Nigel Griffiths
The latest (National Statistics) 2001 SME Statistics shows the following differences from the 2000 estimates, for the UK as a whole.
There were nearly 24,000 more businesses in 2001.
Employment was nearly 0.5 million higher.
Turnover was about £78 billion higher in 2001 than 2000.
Over 99.5 per cent. of the increase in business numbers occurred in the SME category (0 to 249 employees). SMEs also accounted for 70 per cent. of the increase in employment and about 57 per cent. of the turnover increase.

§ Mr. Wiggin
To ask the Secretary of State for Trade and Industry what the rate of(a) small business and (b) venture capital growth has been over the past five years, broken down by region. [73833]

§ Nigel Griffiths
(a) Using SME Statistics and VAT Registrations and De-registrations data the following trends are apparent for the period 1997–2001.
For the UK as a whole there were about 3.71 million small businesses (0 to 49 employees) in 2001. This was an increase of about 36,000 on the 1997 estimates. A more detailed look at the figures shows that this has actually occurred despite a big decrease of about 50,000 from 1997 to 1998. There has been an annual increase of at least 20,000 businesses every year since 1998.
Regional SME statistics are not available for 2000 or 2001. In the period 1997–1999 only London saw an increase in the number of small businesses (approximately 98,500 more).
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In 2001 there were about 7,000 (4 per cent.) less VAT registrations than in 1997 (UK level). The number of VAT de-registrations in the UK also fell by about 1,700 (1 per cent.).
All regions except West Midlands region saw fewer registrations in 2001 than in 1997. All except Eastern and London regions had fewer de-registrations in 2001 than in 1997.
(b) For the UK as a whole 17 per cent. more companies received investment in 2001 than in 1997. The amount of investment in 2001 was 55 per cent. higher than in 1997. However, there was a 25 per cent. decrease in the amount invested from 2000 to 2001, but more companies received this money.
In the 1997–2001 period 5 English regions (Yorkshire & Humber, Eastern, London, South East and South West) have seen an increase in the number of companies receiving investment. Northern Ireland also saw this trend.
6 English regions (all except North West, Yorkshire & Humber and West Midlands) saw an increase in the amount of investment over the period. This was also the case in Scotland.
London saw the biggest changes over the period. From 1997 to 2001 there were 84 per cent. more companies invested in and a 160 per cent. increase in the amount invested.