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 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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