All from the UK Sector Skills Body for Enterprise
Over 95% of enterprises (4.5 million) in the UK are micro enterprises with fewer than ten employees. A fair share of government skills and support funding to start ups, self employed and micro enterprises will provide the best returns for the economy, employment and society of any UK sector.
Yet 95% of government funding for business skills and support goes to the 5% with 10 or more employees
Over three quarters of these businesses have no employees beyond the people running them and only just over a quarter of these businesses are based away fom the owner’s home. They may be hard to reach but SFEDI Advisory Board Members do and can help them. It is vital that we do, for the UK employment rate.
Not having employees or conventional business premises seems to make them invisible to government enterprise skills and support policy. Yet if they were not in business on their own there would be nearly 3.3 million more unemployed. Our unemployment rate is only at the current level because there are over one million more self employed people than in the last recession.
Enterprise owners and the self-employed account for one in seven of the people in work. Self employability and enterprise skills are as important as employability and sector specific skills and lead to most net new jobs growth.
Enterprise owners will account for one in five people in work by 2020 and one in three by 2050. Nearly all the net new jobs growth in the private sector comes out of the growth in self employment and micro enterprises.
There are almost half a million new enterprises starting each year. Providing effective start-up support can halve the rate of early business failure. We believe that government should fund a minimum level of start up training and support to everyone at pre-start for their new enterprise. Running your own enterprise requires specific skills and know how – just like any other career.
In England there is no government policy to ensure all those starting up get the skills coaching and business support to ensure they have the best chance of surviving and thriving in their new career. With the right support over 85% will still be trading in 3 years time and 6% of them will become substantial businesses. (Inbiz)
Almost two-thirds of people running small businesses have no prior business/ management experience and less than a third of these have any formal business training. 12% have no qualifications and 55% have a highest qualification below Level 3. At least 200,000 adults and their enterprises could benefit each year from achieving an enterprise qualification which would be of value for all their working life.
Assisting prospective micro enterprise owners with the skills coaching and business support they need would mean a minimum of 100,000 new level 2 business enterprise qualifications, 30,000 new level 3 qualifications and 5,000 new level 4 qualifications per annum.
Almost all these people say they develop their business abilities by learning from their own experiences and half learn from other enterprise owners. Enterprise learning and support needs to be experiential, active and integrated into the everyday practicalities and problems to be solved in starting or running your own enterprise.
We have researched, defined and proven the skills and know how needed to start up, survive and thrive. We know how to engage with prospective and existing micro enterprise owners. We know how to quality assure and recognise the appropriate enterprise learning and support. We have private and social enterprise sector backing and we’d like government to meet us half way.