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The “new economy” sectors

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The hotel and restaurant sector.

Hands up if you got it right?

According to Not So Little Britain, small businesses accounted for 82 per cent of job growth in this sector in the last economic cycle.

The other sectors in which small businesses are out-performing the big boys in terms of job creation include:

* Construction (82 per cent)

* Real estate (63 per cent)

* IT (63 per cent)

* Recreation and sport (76 per cent).

The report also gives its predictions on the growth of the SME market:

* Britain’s small businesses will generate over 200,000 jobs annually from 2010 as they capitalise on changes to the marketplace brought on by the recession.

* Over the next ten years, small businesses will be responsible for adding almost 700,000 more new employees than larger companies in just six “new economy” sectors (IT, recycling, education, health and leisure) where they are able to innovate more quickly than larger companies. This means that small businesses will contribute an additional £22bn GVA to the economy.

* Over half of small businesses intend to innovate through new or improved products in 2010.

* VAT-registered enterprises will increase by around 35,000 each year in the future.

* London is a regional powerhouse of enterprise creation. However, when looking at the relative recent growth in VAT-registered enterprises, the North East and Scotland have seen the largest growth in enterprises relative to stock.

Do you agree that the “new economy” sectors are IT, recycling, education and health and leisure sectors? Post your opinions below.

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