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A new report from the Federation of Small Businesses (FSB) has underlined just how important small firms are to strengthening the economy, tackling unemployment, and taking on people who are shut out of the labour market.
The report shows that each year small and medium sized businesses take on around 1.3 million unemployed and disadvantaged people. In contrast, large firms with more than 250 employees hire less than 130,000 on average.
The report finds groups such as long term sick, disabled and students, among others, are more likely to be employed by a small business. In fact, 95% of this group that find work in the private sector will work for or start up a small or medium sized business. Almost nine in ten (88%) unemployed people that are actively looking for work will find a job in, or start up, a small business.