| The Forum of Private Businesses (FPB) has accused the government of spinning statistics about the number of companies being formed in the UK to give the impression that they are encouraging start-up businesses.
"The fact of the matter is that there are no more employers than there were in 1997. This increase in the number of small firms is all about more companies without employees," stated Len Collinson, National Chairman of the FPB.
By presenting sole traders incorporating as a limited company as new start-up ventures, the FPB feels that the government are misleading people, by giving the impression that they are encouraging small businesses and entrepreneurs.
The FPB’s allegation is supported by recent research by the European School of Management (ESM), which argued that the number of companies formed was not an accurate way to analyse the strength of small businesses within the UK.
The report also suggests that the growth of small businesses would be a more accurate model, and that growth has declined since 2001, reflecting the difficulties that smaller companies are facing in the current business climate.
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