1 million leave the enterprise economy – Byrne

by Liam Byrne | 25.05.16 | in: Economics, Equality, Labour market, National news, Philosophy, Uncategorized, Westminster, Young people | Tags:

Embargo: 0001 Tuesday 24th June 2016

 

British enterprise economy going into reverse – Byrne

 

Britain’s enterprise economy risks going into reverse as new House of Commons library figures commissioned by Liam Byrne MP, reveals over 1 million people have left ‘entrepreneurial activity’ in the last three years.

 

The analysis comes as new figures show:

 

  • The number of entrepreneurs – those engaged in ‘total early stage entrepreneurial activity’ – has fallen by over 1 million people in the last three years (2012-15);

 

  • The value of government contracts with British hi-tech, high growth firms has fallen by 25% in the last year.

 

  • Yet Britain could create over 800,000 new jobs if every community in Britain created the average number of new start-up firms. If every local authority in Britain raised its start-up rate of new businesses to the UK national average, Britain would boast 336,585 new businesses – employing over 840,000 people – which is more than the number of people on unemployment benefit.

 

Yet the Queen’s Speech last week offered almost no measures to support start-ups and high growth firms.

 

Mr Byrne released the figures to coincide with the release of his new book, Dragons: How Ten Entrepreneurs Built Britain which is launched at the Royal Society of Arts tonight.

 

Mr Byrne, who was an entrepreneur and a Fulbright Scholar at the Harvard Business School, said:

 

‘Britain was built by some of the most extraordinary entrepreneurs in history. And while we’re more enterprising than we used to be, we’ve got a long, long way to go.

 

‘Globally, we’re only 48th out of 60 in the global enterprise league table – and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America – google.co.uk and amazon.co.uk, and the total value of all European ‘unicorns’ (new firms worth $1 billion) at around £85 billion, is just half the value of Facebook.

 

‘Right now, big business is simply failing to invest in the great new jobs, of the future – so we need our enterprising classes more than ever before, to create the new jobs in new industries like big data or genetic medicine or cyber-security or the internet of things.

 

‘That’s why it was disappointing that last week’s Queen’s Speech had so little to say about enterprise education, or start-up funding, or government contracts for young business. These are the kind of policies that our competitors use all the time.

 

‘Great entrepreneurs change history – by inventing the future. We need to help them – we need to help them, or we’ll fall behind.

 

ENDS

 

Notes to editors:

 

  1. Total early stage entrepreneurial activity is defined as anyone who is in the process of starting a business or running a business which is less than three years old.Between 2012 and 2015, the number of people in the UK involved with TEA has fallen by 1.1 million.

 

According to new research from the House of Commons Library if the business startup rate in every local authority across the UK were to increase to at least the current national average – we would see an additional 336,585 new businesses created. According to the House of Commons Library, on average, every new VAT registered business creates 2.5 new jobs. Therefore an additional 336,585 new business startups could create 841,463 new jobs across the UK.

According to an answer to a Parliamentary Question from Mr Liam Byrne, the value of Small Business Research Initiative (SBRI) contracts with high-tech small business has fallen by 25% in the last year

 

Parliamentary Question (34697)

To ask the Secretary of State for Business, Innovation and Skills, what value of contracts has been awarded through the Small Business Research Initiative in each year for which records are available. (34697)

Tabled on: 19 April 2016

Answer: Joseph Johnson:

The value of contracts awarded through the Small Business Research Initiative in each year for which records are available is as follows:

Financial Year 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2014/15 to 2015/16
Total contract value (£’000) 29,672 13,029 23,490 44,413 77,495 83,097 62,031 Fall of 21,066Fall of 25%

 

 

Small Business Research Initiative (SBRI) brings together government challenges and ideas from business to create innovative solutions.

 

Appendix 2: Table of local authority enterprise rates

 

House of Commons Library research
VAT businesses by local authority across the UK – 2014

 

Local Authority VAT registered businesses Population   Businesses per 10,000 people   New businesses needed to get to national average
Birmingham 29,520 1,101,360 268.0 12,241
Sheffield 14,555 563,749 258.2 6,821
County Durham 13,040 517,773 251.8 6,593
Liverpool 11,690 473,073 247.1 6,248
Glasgow City 16,630 599,640 277.3 6,107
North Lanarkshire 6,875 338,000 203.4 5,941
Bradford 14,420 528,155 273.0 5,606
Sunderland 5,395 276,889 194.8 5,104
Fife 9,010 367,250 245.3 4,915
Plymouth 5,555 261,546 212.4 4,362
Sandwell 7,680 316,719 242.5 4,329
Kingston upon Hull, City of 5,650 257,710 219.2 4,122
Rhondda, Cynon, Taff 4,980 236,888 210.2 4,002
Coventry 8,835 337,428 261.8 3,959
Wirral 8,220 320,914 256.1 3,948
Wigan 8,250 320,975 257.0 3,921
Stoke-on-Trent 5,660 251,027 225.5 3,858
Wakefield 8,715 331,379 263.0 3,850
Nottingham 8,075 314,268 256.9 3,841
Newham 8,535 324,322 263.2 3,762
Newcastle upon Tyne 7,320 289,835 252.6 3,670
South Lanarkshire 8,430 315,300 267.4 3,525
Rotherham 6,390 260,070 245.7 3,471
Doncaster 8,090 304,185 266.0 3,444
Walsall 6,975 274,173 254.4 3,421
Southampton 5,930 245,290 241.8 3,371
Barnsley 5,770 237,843 242.6 3,248
Wolverhampton 6,370 252,987 251.8 3,223
Swansea 6,010 241,297 249.1 3,139
Sefton 7,265 273,531 265.6 3,107
North Tyneside 4,620 202,744 227.9 3,068
Caerphilly 3,760 179,941 209.0 3,063
Cardiff 10,380 354,294 293.0 3,054
Medway 7,485 274,015 273.2 2,905
Derby 6,740 252,463 267.0 2,833
Dudley 9,160 315,799 290.1 2,814
Leeds 26,280 766,399 342.9 2,780
Gateshead 4,835 200,505 241.1 2,768
Oldham 5,940 228,765 259.7 2,734
Portsmouth 5,220 209,085 249.7 2,708
Kirklees 13,640 431,020 316.5 2,703
Manchester 17,045 520,215 327.7 2,680
Knowsley 2,915 146,407 199.1 2,636
Tameside 5,745 220,771 260.2 2,626
South Tyneside 3,055 148,740 205.4 2,585
St. Helens 4,195 177,188 236.8 2,524
Lewisham 8,585 291,933 294.1 2,484
West Lothian 4,255 177,200 240.1 2,464
Leicester 10,345 337,653 306.4 2,458
Neath Port Talbot 2,900 140,490 206.4 2,427
Dundee City 3,210 148,130 216.7 2,407
Falkirk 3,625 157,690 229.9 2,354
Bolton 8,285 280,439 295.4 2,349
Luton 5,675 210,962 269.0 2,324
Middlesbrough 2,955 139,119 212.4 2,320
Barking and Dagenham 5,210 198,294 262.7 2,309
Rochdale 5,780 212,962 271.4 2,295
Renfrewshire 4,315 174,230 247.7 2,291
Belfast 8,475 283,166 299.3 2,262
Greenwich 8,065 268,678 300.2 2,123
Stockton-on-Tees 5,260 194,119 271.0 2,100
Redcar and Cleveland 3,055 135,042 226.2 2,065
North Ayrshire 3,145 136,480 230.4 2,030
Newport 3,595 146,841 244.8 1,973
Ashfield 2,700 122,508 220.4 1,945
Bridgend 3,515 141,214 248.9 1,839
Telford and Wrekin 4,660 169,440 275.0 1,765
Thanet 3,490 138,410 252.1 1,758
Blackpool 3,570 140,501 254.1 1,757
West Dunbartonshire 1,695 89,710 188.9 1,707
North East Lincolnshire 4,415 159,804 276.3 1,644
Salford 7,535 242,040 311.3 1,643
Swindon 6,590 215,799 305.4 1,593
Halton 3,240 126,354 256.4 1,551
East Ayrshire 3,080 122,130 252.2 1,551
Bexley 7,590 239,865 316.4 1,505
Derry 2,640 109,150 241.9 1,499
Mansfield 2,540 105,893 239.9 1,475
Ipswich 3,660 134,966 271.2 1,458
Blaenau Gwent 1,185 69,674 170.1 1,457
Newtownabbey 1,800 85,855 209.7 1,455
Torfaen 2,020 91,609 220.5 1,454
Inverclyde 1,605 79,890 200.9 1,424
Oxford 4,585 157,997 290.2 1,406
Nuneaton and Bedworth 3,380 126,174 267.9 1,404
Edinburgh, City of 17,275 492,610 350.7 1,403
Croydon 12,880 376,040 342.5 1,378
Newcastle-under-Lyme 3,410 126,052 270.5 1,370
Gosport 1,830 84,287 217.1 1,366
Gloucester 3,425 125,649 272.6 1,339
Peterborough 5,905 190,461 310.0 1,317
Wrexham 3,875 136,714 283.4 1,309
Hartlepool 2,215 92,590 239.2 1,296
Waltham Forest 8,910 268,020 332.4 1,253
East Dunbartonshire 2,810 106,710 263.3 1,236
Castlereagh 1,375 68,388 201.1 1,218
Bournemouth 6,045 191,390 315.8 1,212
Lincoln 2,455 96,202 255.2 1,193
Blackburn with Darwen 4,380 146,743 298.5 1,184
North Lincolnshire 5,240 169,247 309.6 1,177
Broxtowe 3,065 111,780 274.2 1,173
Crawley 2,995 109,883 272.6 1,171
Torbay 3,885 132,984 292.1 1,157
Gedling 3,255 115,638 281.5 1,130
Thurrock 5,065 163,270 310.2 1,126
North Down 1,920 79,331 242.0 1,088
Merthyr Tydfil 1,155 59,065 195.5 1,085
York 6,670 204,439 326.3 1,082
Tendring 4,230 139,916 302.3 1,075
Dover 3,220 113,066 284.8 1,067
Midlothian 2,215 86,220 256.9 1,054
Craigavon 2,625 96,808 271.2 1,046
Northumberland 10,965 315,987 347.0 1,016
East Renfrewshire 2,510 92,410 271.6 994
Lisburn 3,695 123,579 299.0 991
Flintshire 4,845 153,804 315.0 987
Darlington 3,020 105,367 286.6 975
East Lothian 2,930 102,090 287.0 941
Canterbury 5,045 157,649 320.0 933
Lancaster 4,430 141,277 313.6 927
Worcester 2,900 100,842 287.6 924
Eastbourne 2,935 101,547 289.0 915
South Gloucestershire 9,400 271,556 346.2 897
Swale 4,455 140,836 316.3 885
Exeter 3,830 124,328 308.1 884
South Ayrshire 3,385 112,530 300.8 882
Burnley 2,440 87,291 279.5 870
Hastings 2,585 91,093 283.8 869
Enfield 11,445 324,574 352.6 862
Hyndburn 2,180 80,208 271.8 861
Norwich 4,370 137,472 317.9 843
The Vale of Glamorgan 4,000 127,685 313.3 841
Arun 5,025 154,414 325.4 830
Clackmannanshire 1,120 51,190 218.8 821
Havering 8,520 245,974 346.4 807
Erewash 3,520 114,048 308.6 804
Tamworth 2,130 77,112 276.2 794
Great Yarmouth 2,940 98,172 299.5 782
Chesterfield 3,190 104,288 305.9 764
Isle of Wight 4,545 139,105 326.7 729
Bury 6,380 187,474 340.3 729
Havant 3,915 122,210 320.4 719
Shepway 3,435 109,452 313.8 715
Gravesham 3,280 105,261 311.6 711
Carrickfergus 775 39,114 198.1 708
Weymouth and Portland 1,765 64,992 271.6 699
Pendle 2,730 89,840 303.9 676
Waveney 3,720 115,919 320.9 675
Harlow 2,550 84,564 301.5 656
Redditch 2,555 84,471 302.5 648
Charnwood 5,965 173,545 343.7 615
Ards 2,385 78,924 302.2 608
Corby 1,875 65,434 286.5 606
Rushmoor 3,050 95,296 320.1 563
Barrow-in-Furness 2,010 67,648 297.1 555
Bassetlaw 3,775 114,143 330.7 553
North East Derbyshire 3,235 99,352 325.6 532
Angus 3,895 116,740 333.6 531
Cannock Chase 3,220 98,549 326.7 517
Stevenage 2,755 85,997 320.4 506
Worthing 3,550 106,863 332.2 502
Slough 4,985 144,575 344.8 497
Warrington 7,340 206,428 355.6 487
Bolsover 2,440 77,155 316.2 486
Preston 4,865 140,452 346.4 461
Moray 3,135 94,770 330.8 458
South Ribble 3,700 109,077 339.2 436
Boston 2,095 66,458 315.2 425
King`s Lynn and West Norfolk 5,270 150,026 351.3 419
Solihull 7,560 209,890 360.2 398
Amber Valley 4,310 123,942 347.7 390
Wyre Forest 3,365 98,960 340.0 387
Fenland 3,340 97,732 341.8 366
Castle Point 3,030 88,907 340.8 341
Oadby and Wigston 1,800 55,928 321.8 321
Dartford 3,585 102,234 350.7 291
South Derbyshire 3,445 98,374 350.2 285
Southend-on-Sea 6,480 177,931 364.2 267
Basildon 6,580 180,521 364.5 265
Broadland 4,540 125,961 360.4 236
Colchester 6,620 180,420 366.9 221
Adur 2,185 63,176 345.9 210
Coleraine 2,035 59,217 343.7 210
Cambridge 4,665 128,515 363.0 208
Fareham 4,140 114,331 362.1 195
Anglesey 2,475 70,169 352.7 186
Calderdale 7,685 207,376 370.6 178
Breckland 4,905 133,986 366.1 175
Rossendale 2,455 69,168 354.9 168
Kettering 3,520 96,945 363.1 156
Antrim 1,900 54,111 351.1 152
Northampton 8,180 219,495 372.7 143
Bristol, City of 16,635 442,474 376.0 142
Chorley 4,090 111,607 366.5 142
South Staffordshire 4,060 110,692 366.8 137
Conwy 4,275 116,287 367.6 134
Sutton 7,415 198,134 374.2 98
Larne 1,130 32,307 349.8 95
Wyre 4,035 108,742 371.1 88
Bracknell Forest 4,410 118,025 373.6 65
Copeland 2,600 69,832 372.3 48
Forest Heath 2,345 62,812 373.3 37
Limavady 1,255 34,011 369.0 35
Denbighshire 3,565 94,791 376.1 29
West Lancashire 4,240 111,940 378.8 4
UK 2,449,415 64,598,766 379.2

 

 

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