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UK start-ups creating more jobs than rest of Europe

Britain's start-ups creating twice as many jobs per 100,000 people than new businesses in Germany

UK start-ups are creating more jobs than their equivalents in any other major European economy, according to a report by Rousseau Associates.

The consultancy firm's figures show that more than half a million (553,761) people were employed by the 242,400 new businesses started in the UK in 2012, putting the country significantly ahead of the next biggest employer France at 398,521.

In comparison, Germany’s start-ups created 346,556 jobs and Norway’s start-up entrepreneurs created 17,310. The report claims that new jobs created by British start-ups evidences “ambition and scope”.

The report also highlights the positive effect of the National Insurance (NI) employment allowance, which was introduced last year to enable employers to reduce national insurance bills by up to £2,000 per year. The allowance has reduced the cost of a business taking on its first employee, and as well as the NI exemption for under 21s will help new businesses create more jobs.

Michael Heath, business development director at Rousseau Associates, said: “These figures are really encouraging for UK plc.  They show that the current wave of start-ups in the UK are very much more than one-man-bands starting up in response to job losses during the recession. They are aiming for much more than simply to replace a lost wage.”

“Our start-ups are being driven by ambitious risk-taking entrepreneurs.  The levels of job creation are indicators that many start-ups have a clear strategic vision and the goal of developing into successful businesses of some size.”

Henry Williams
Henry Williams

Henry has been writing for since 2015, covering everything from business finance and web builders to tax and red tape. He’s also contributed to many of our industry-renowned annual indexes, including Startups 100 and Young Guns, and created a number of the site’s popular how to guides. Before joining the team, he reviewed films for a culture website, and still harbours ambitions of being a screenwriter.


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