Research: 1 million leave the enterprise economy – 24 June 2016

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

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

Embargo: 0001 Tuesday 24th June 2016

 

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 Year2009/102010/112011/122012/132013/142014/152015/162014/15 to 2015/16
Total contract value (£’000)29,67213,02923,49044,41377,49583,09762,031Fall 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 AuthorityVAT registered businessesPopulation Businesses per 10,000 people New businesses needed to get to national average
Birmingham29,5201,101,360268.012,241
Sheffield14,555563,749258.26,821
County Durham13,040517,773251.86,593
Liverpool11,690473,073247.16,248
Glasgow City16,630599,640277.36,107
North Lanarkshire6,875338,000203.45,941
Bradford14,420528,155273.05,606
Sunderland5,395276,889194.85,104
Fife9,010367,250245.34,915
Plymouth5,555261,546212.44,362
Sandwell7,680316,719242.54,329
Kingston upon Hull, City of5,650257,710219.24,122
Rhondda, Cynon, Taff4,980236,888210.24,002
Coventry8,835337,428261.83,959
Wirral8,220320,914256.13,948
Wigan8,250320,975257.03,921
Stoke-on-Trent5,660251,027225.53,858
Wakefield8,715331,379263.03,850
Nottingham8,075314,268256.93,841
Newham8,535324,322263.23,762
Newcastle upon Tyne7,320289,835252.63,670
South Lanarkshire8,430315,300267.43,525
Rotherham6,390260,070245.73,471
Doncaster8,090304,185266.03,444
Walsall6,975274,173254.43,421
Southampton5,930245,290241.83,371
Barnsley5,770237,843242.63,248
Wolverhampton6,370252,987251.83,223
Swansea6,010241,297249.13,139
Sefton7,265273,531265.63,107
North Tyneside4,620202,744227.93,068
Caerphilly3,760179,941209.03,063
Cardiff10,380354,294293.03,054
Medway7,485274,015273.22,905
Derby6,740252,463267.02,833
Dudley9,160315,799290.12,814
Leeds26,280766,399342.92,780
Gateshead4,835200,505241.12,768
Oldham5,940228,765259.72,734
Portsmouth5,220209,085249.72,708
Kirklees13,640431,020316.52,703
Manchester17,045520,215327.72,680
Knowsley2,915146,407199.12,636
Tameside5,745220,771260.22,626
South Tyneside3,055148,740205.42,585
St. Helens4,195177,188236.82,524
Lewisham8,585291,933294.12,484
West Lothian4,255177,200240.12,464
Leicester10,345337,653306.42,458
Neath Port Talbot2,900140,490206.42,427
Dundee City3,210148,130216.72,407
Falkirk3,625157,690229.92,354
Bolton8,285280,439295.42,349
Luton5,675210,962269.02,324
Middlesbrough2,955139,119212.42,320
Barking and Dagenham5,210198,294262.72,309
Rochdale5,780212,962271.42,295
Renfrewshire4,315174,230247.72,291
Belfast8,475283,166299.32,262
Greenwich8,065268,678300.22,123
Stockton-on-Tees5,260194,119271.02,100
Redcar and Cleveland3,055135,042226.22,065
North Ayrshire3,145136,480230.42,030
Newport3,595146,841244.81,973
Ashfield2,700122,508220.41,945
Bridgend3,515141,214248.91,839
Telford and Wrekin4,660169,440275.01,765
Thanet3,490138,410252.11,758
Blackpool3,570140,501254.11,757
West Dunbartonshire1,69589,710188.91,707
North East Lincolnshire4,415159,804276.31,644
Salford7,535242,040311.31,643
Swindon6,590215,799305.41,593
Halton3,240126,354256.41,551
East Ayrshire3,080122,130252.21,551
Bexley7,590239,865316.41,505
Derry2,640109,150241.91,499
Mansfield2,540105,893239.91,475
Ipswich3,660134,966271.21,458
Blaenau Gwent1,18569,674170.11,457
Newtownabbey1,80085,855209.71,455
Torfaen2,02091,609220.51,454
Inverclyde1,60579,890200.91,424
Oxford4,585157,997290.21,406
Nuneaton and Bedworth3,380126,174267.91,404
Edinburgh, City of17,275492,610350.71,403
Croydon12,880376,040342.51,378
Newcastle-under-Lyme3,410126,052270.51,370
Gosport1,83084,287217.11,366
Gloucester3,425125,649272.61,339
Peterborough5,905190,461310.01,317
Wrexham3,875136,714283.41,309
Hartlepool2,21592,590239.21,296
Waltham Forest8,910268,020332.41,253
East Dunbartonshire2,810106,710263.31,236
Castlereagh1,37568,388201.11,218
Bournemouth6,045191,390315.81,212
Lincoln2,45596,202255.21,193
Blackburn with Darwen4,380146,743298.51,184
North Lincolnshire5,240169,247309.61,177
Broxtowe3,065111,780274.21,173
Crawley2,995109,883272.61,171
Torbay3,885132,984292.11,157
Gedling3,255115,638281.51,130
Thurrock5,065163,270310.21,126
North Down1,92079,331242.01,088
Merthyr Tydfil1,15559,065195.51,085
York6,670204,439326.31,082
Tendring4,230139,916302.31,075
Dover3,220113,066284.81,067
Midlothian2,21586,220256.91,054
Craigavon2,62596,808271.21,046
Northumberland10,965315,987347.01,016
East Renfrewshire2,51092,410271.6994
Lisburn3,695123,579299.0991
Flintshire4,845153,804315.0987
Darlington3,020105,367286.6975
East Lothian2,930102,090287.0941
Canterbury5,045157,649320.0933
Lancaster4,430141,277313.6927
Worcester2,900100,842287.6924
Eastbourne2,935101,547289.0915
South Gloucestershire9,400271,556346.2897
Swale4,455140,836316.3885
Exeter3,830124,328308.1884
South Ayrshire3,385112,530300.8882
Burnley2,44087,291279.5870
Hastings2,58591,093283.8869
Enfield11,445324,574352.6862
Hyndburn2,18080,208271.8861
Norwich4,370137,472317.9843
The Vale of Glamorgan4,000127,685313.3841
Arun5,025154,414325.4830
Clackmannanshire1,12051,190218.8821
Havering8,520245,974346.4807
Erewash3,520114,048308.6804
Tamworth2,13077,112276.2794
Great Yarmouth2,94098,172299.5782
Chesterfield3,190104,288305.9764
Isle of Wight4,545139,105326.7729
Bury6,380187,474340.3729
Havant3,915122,210320.4719
Shepway3,435109,452313.8715
Gravesham3,280105,261311.6711
Carrickfergus77539,114198.1708
Weymouth and Portland1,76564,992271.6699
Pendle2,73089,840303.9676
Waveney3,720115,919320.9675
Harlow2,55084,564301.5656
Redditch2,55584,471302.5648
Charnwood5,965173,545343.7615
Ards2,38578,924302.2608
Corby1,87565,434286.5606
Rushmoor3,05095,296320.1563
Barrow-in-Furness2,01067,648297.1555
Bassetlaw3,775114,143330.7553
North East Derbyshire3,23599,352325.6532
Angus3,895116,740333.6531
Cannock Chase3,22098,549326.7517
Stevenage2,75585,997320.4506
Worthing3,550106,863332.2502
Slough4,985144,575344.8497
Warrington7,340206,428355.6487
Bolsover2,44077,155316.2486
Preston4,865140,452346.4461
Moray3,13594,770330.8458
South Ribble3,700109,077339.2436
Boston2,09566,458315.2425
King`s Lynn and West Norfolk5,270150,026351.3419
Solihull7,560209,890360.2398
Amber Valley4,310123,942347.7390
Wyre Forest3,36598,960340.0387
Fenland3,34097,732341.8366
Castle Point3,03088,907340.8341
Oadby and Wigston1,80055,928321.8321
Dartford3,585102,234350.7291
South Derbyshire3,44598,374350.2285
Southend-on-Sea6,480177,931364.2267
Basildon6,580180,521364.5265
Broadland4,540125,961360.4236
Colchester6,620180,420366.9221
Adur2,18563,176345.9210
Coleraine2,03559,217343.7210
Cambridge4,665128,515363.0208
Fareham4,140114,331362.1195
Anglesey2,47570,169352.7186
Calderdale7,685207,376370.6178
Breckland4,905133,986366.1175
Rossendale2,45569,168354.9168
Kettering3,52096,945363.1156
Antrim1,90054,111351.1152
Northampton8,180219,495372.7143
Bristol, City of16,635442,474376.0142
Chorley4,090111,607366.5142
South Staffordshire4,060110,692366.8137
Conwy4,275116,287367.6134
Sutton7,415198,134374.298
Larne1,13032,307349.895
Wyre4,035108,742371.188
Bracknell Forest4,410118,025373.665
Copeland2,60069,832372.348
Forest Heath2,34562,812373.337
Limavady1,25534,011369.035
Denbighshire3,56594,791376.129
West Lancashire4,240111,940378.84
UK2,449,41564,598,766379.2

 

 

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