Why Are Small Businesses so Important to the Uk Economy?

476 Words2 Pages
Small businesses are very important to the UK economy to keep it running well for many reasons, such as jobs and helping recover the economy from the recession. Small businesses are important to the UK economy because they provide jobs. In the recession there is a lack of jobs, especially in the public sector, so small businesses are vital for creating jobs for people. This helps the economy as more people will have money, so then more people will spend their money, which will then mean other shops may make money, and if enough jobs are taken up they may look for more workers, thus further improving the UK economy. Small businesses are also important for innovation and new ideas. This is because it can be much easier to come up with and agree on ideas in a smaller business as there are less levels of power within the business to accept it; a bigger business can spend a long time on accepting new ideas that could benefit the business, and even further – the UK economy. This can also help as small businesses have come up with many good ideas which then get sold to bigger companies that have the power and the money to put plans into action which can then help the UK economy. The UK economy also benefits from small businesses because of the taxes they pay. Although they may pay less than a massive business there are so many small businesses that the government receives more money through taxes. Small businesses can also help the economy as they can help with tourism. For example, many small businesses are restaurants, or maybe small hotels that aren’t owned by a big company that has spread around the world. This benefits the UK economy because many tourists may be looking for cheap accommodation; this then allows these tourists to visit small restaurants in areas, thus helping to improve the UK economy. Small businesses also help the economy because the money they
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