UK becoming the ‘self-employment capital’ of Western Europe

Job growth in UK fuelled by fastest growth of self-employment in Europe

  • Growth in self-employment in the UK has been the fastest of all Western European countries over the last year, with the proportion of workers who are self-employed rising by almost a whole percentage point.
  • The UK had internationally low levels of self-employment for many years but has caught up with the EU average
  • Self-employment has proven to be a key driver of overall job creation, with the working-age employment rate reaching historically high levels.

Demography – businesses

Business Demography, 2012: ONS

  • The number of business births increased by 8,000 (3.1 %) between 2011 and 2012.
  • The number of business deaths increased by 25,000 (11.0%) between 2011 and 2012.
  • In 2012 the births of new businesses (270,000) was greater than business deaths (255,000).
  • The move towards economic recovery has seen birth rates being higher than death rates from 2011, but the gap has narrowed in 2012.
  • London had the highest business birth rate at 14.8% and the highest death rate at 11.7%. Apart from London the number of birth and deaths by region were similar.
  • In broad industry terms, accommodation and food services had the highest death rate, at 13.3%.

Global Entrepreneurship Monitor United Kingdom 2011

Global Entrepreneurship Monitor United Kingdom 2011

  • Total early-stage entrepreneurial activity  (the sum of the nascent entrepreneurship rate and the new business owner-manager rate – without
    double counting) in the UK in 2011 was 7.6%
  • In the UK, 9.8% of working age adults expected to start a business within the next 3 years in 2011, compared with 15.8% in the US
  • When surveyed in mid-2011, 4.2% of the adult population in the UK were actively trying to start a business, compared with 8.3% in the US
  • When surveyed in 2011, 3.4% of the UK working age adult population were owner-managers of a business that was 3 – 42 months old
  • In 2011, the proportion of the adult population who owned and managed a business older than 42 months in the UK was 6.5%
  • Necessity-driven early-stage entrepreneurship in the UK rose significantly in 2011 from 0.7% to 1.3%
  • In 2011, UK levels of female early-stage entrepreneurship were 49% of male early-stage entrepreneurial activity