ERC Study Proves SMEs Are ‘Engine Room Of Economy’

Specialist Lawyers React To New Research On Small Business Growth

16.06.2015

New research showing that the growth of small and medium-sized enterprises (SMEs) has reached pre-recession levels highlights the businesses are “the engine room” of the economy, according to a specialist business lawyer.

The study by the Enterprise Research Centre (ERC), reported by the FT, revealed that the number of private sector jobs created since 2008 exceeded those which were lost by 400,00 by the end of 2014.

It also found that new start-up businesses created four million jobs across the same period, with SMEs now accounting for in the region of 60 per cent of employment in the private sector.

According to the ERC, the study demonstrated that SME Britain is “finally back to where it was before the recession in terms of jobs, growth and start-up activity”.

The findings have been welcomed by Steve Beahan, a Partner and specialist business lawyer who is part of Irwin Mitchell’s SME group providing specialist support to growing businesses.

Expert Opinion
"The recession created a very difficult few years, but this research arguably indicates the silver lining that it brought with it – an opportunity for those affected to chase their dreams and begin their own ventures.

"Small businesses have long been heralded as the lifeblood or ‘engine room’ of the economy and this research proves it. Quite simply, when entrepreneurs thrive the business world thrives, with the creation of new jobs and fresh opportunities.

"However, it is important to remember that leading SMEs do not often simply go it alone. A proper, comprehensive support network is vital to help them on their way and this should include legal advice on the key aspects they need to consider – from data protection, employment to regulatory compliance."
Steven Beahan, Partner