Smaller firms create 85 per cent of new jobs, report finds
18/01/2012 10:14
Small and medium-sized enterprises (SMEs) could create more and better part-time and permanent jobs, according to a new report.The European Commission published new findings on January 17th that showed SMEs have a significant and important role in creating jobs to boost both the economy and the employment market.
According to the commission's report, smaller businesses provide a vital contribution to the European economy and account for more than two-thirds of the total employment in private industries.
In addition, SMEs contribute around 85 per cent of the net jobs market growth, the findings suggested.
Statistics from the EU showed that in 2010 there were 20.8 million SMEs in the non-financial business economy that provided 87 million people with employment positions.
Between 2002 and 2010, smaller enterprises had a higher employment growth rate at one per cent compared to large corporations, which showed a 0.5 per cent contribution.
The writers of the report stated that SMEs are essential for the economic recovery of Europe and for countering the negative effects of the eurozone crisis, which has led to many people losing their jobs.
Lucy Armstrong, chair of the CBI's SME Council, recently suggested that SMEs are best placed to boost job creation statistics and get more people into work.
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