Sole Traders – The Cornerstone of UK’s Business Growth
The Guardian reports that it is sole traders who are currently one major motor for UK business growth. The paper published figures that showed that more than 200,000 sole traders started with their business this past year.
The 5.2 million private sector businesses established in 2014 are one third of one million more as compared to previous time period. According to the Business Population Statistics report, the majority of those 30,000 new businesses are sole traders.
The U.K.’s business minister Matthew Hancock in a tweet today, following the publication of those numbers: “Yet more proof that our long-term economic plan is working. More UK business, creating more jobs & more hardworking families are better off.”
A downside of this development is that the vast majority of these businesses are non-employees. The report continues to state that “the UK’s increasing self-employment has been the key driver of business population growth since 2000 and remains so in the increase of 330,000 businesses since the start of 2013.”
For some British economists, the numbers are alarming. Only 3% of those one-man businesses hired staff during the last five years. Now, economists are voicing their concerns and say that the government failed at encouraging those businesses to hire.