Britain’s small businesses to create 1.9 million new jobs in 2014

Small businesses across Britain are set to create 1.9 million new jobs by the end of 2014, potentially adding up to £27bn to the economy in new small business wages, according to recent findings from Direct Line for Business (DL4B).

The research, which was conducted by Consumer Intelligence among a sample of 401 start-ups with up to 10 employees, also revealed that over 400,000 home-based businesses intend to take on their first employee this year.

The study suggests that new employees joining small firms this year will be required to work an average of 28 hours a week, with those looking to hire their first employee expecting to recruit someone for only 21 hours a week.

The small and micro businesses surveyed said they plan to pay new recruits on average £14,405 a year, whilst self-employed businesses intend to start new staff on £10,795 a year.

DL4B also looked at small business recruitment plans on a regional level and found London to be the “most proactive” with 41% of start-ups in the capital planning to take on extra staff this year.

The South West and North West were second and third with regards to recruitment drive with 35% and 31% respectively expecting to take on additional staff in 2014.

British female small business owners were found to be more likely to recruit new employees this year than their male counterparts with 33% of women looking to recruit additional staff this year compared to 26% of male business owners.

Jasvinder Gakhal, head of Direct Line for Business, said of the findings: “Small businesses are the lifeblood of our economy, employing millions of people, and our research shows that they are set to contribute significantly this year.

“With positive signs of economic growth, many businesses will want to take advantage by expanding– often by increasing headcount.”