23 March 2001 -
A report from the UK Government's Futures programme,
Foresight predicts a rise in the number of small businesses of nearly 1 million.
Speaking at the Federation of Small Businesses Conference in
Plymouth, Paricia Hewitt said:
"The Foresight report predicts a significant increase in the number
of SMEs over the next 10 years. By 2010 there will be over 4.5million
SMEs, up from 3.7million today. They will be the main drivers of
economic growth, product innovation and job creation in the UK.
"The Government is creating an environment where enterprise can
flourish and prosper. But we cannot afford to be complacent. By 2005
the UK should be the best place in the world to start and grow a
business."
The report, 'Financing the Enterprise Society', prepared by the Foresight
Financial Services Panel looks at:
* The New Economy - the effects of new advances in computing, communications and other
technologies. Growth in knowledge intensive work and businesses rich
in intellectual capital;
* Impact of e-commerce - new business models where size doesn't
matter, benefits arising from reduced transaction and procurement
costs. New models for capital raising;
* Changing pattern of private investment - rise of the affluent
private investor, new style local stock exchanges;
* Social Trends favouring SME formation - more women owned SMEs and
SMEs owned by ethnic minorities, providing a rich diverse mix of
business owners; and
* Government Policy and Regulation - Government at all levels -
local, national, European - have recognised that SMEs are a critical
part of the economy. In the UK, many programmes are in place to
encourage the formation and survival of SMEs.
The Employment Market
