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Small-businesses-and-the-labour-market

Creating High Quality Jobs

The Issue

Small and micro businesses have created the highest number of jobs since the recession.

A study by the IPPR  shows 84 per cent of new jobs created in the private sector were in small or medium sized businesses, or through self-employment.

Small firms are also more likely to play a social as well as an economic role compared to large companies. They employ the unemployed, long-term sick, people with disabilities and students. Yet many small firms struggle to overcome barriers to recruitment, especially first-time employers.

Action FSB have taken

  • Calling on policymakers to recognise the critical role small businesses play in creating high quality jobs in local communities.
  • Lobbying the Treasury for the Employment Allowance to be increased to help businesses take on staff, increase training and pay.
  • Promoting the benefits of flexible working for productivity, performance and recruitment among small employers.
  • Calling on Government to support the creation of collective insurance schemes. This will help small businesses to offer a wide range of benefits to their staff.

Our Goal

We want policy makers to help build an environment that encourages job creation and provides practical support for small firms. We believe this will encourage more people to consider a career in small business. Reforming employment regulations will help small companies take on staff and grow.

“We’re lucky to really benefit from the Employment Allowance as any discount is always welcome. Our staff are really loyal, so sickness isn’t an issue so we can reinvest the money in the business” FSB Member.

Achievements in...


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UK/Westminster

  • Persuading the Government to cut Employers’ National Insurance as an incentive to recruit more staff and boost pay and training.
  • Working with Government to ensure employment regulations don’t harm small businesses while balancing them with the rights of workers.
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Scotland

  • We persuaded the Scottish Government to launch a new £10m fund to encourage businesses to recruit new staff or train their workforce.  

  • We’re calling on government to continue funding the scheme in the next parliamentary term and to trust businesses to spend the £4,000 according to their needs.

Visit Scotland section

FSB Employment Protection

A wealth of important information and advice, available online in-case you face dismissal or discrimination claims and employment tribunals.

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