Abstract
According to data from Labour Market Trends in 1999, enterprises with fewer than 50 employees provide 45% of UK non-government employment and account for 38% of turnover, the employment figure includes the self-employed who employ no one and comprise 2.3 Million out of a total of 3.7 million of small firms. There are considerable sectoral variations in the importance of small firms: for example, in agriculture, forestry, fishing and construction they account for nearly all employment; in hotels, restaurants and catering for about a half; and for a minority in manufacturing (29%) and financial intermediation (16%). ‘Micro businesses' (0-9 employees) account for 94% of all businesses and for 28% of employment. Organisations with 10-99 employees add a further 5 percent of all businesses, which account for 22% of employment . While the Small firms account for a large part of the working population, they have not always been spoilt by British Politics. During the main part of the 20th century, there were seen as impediment to economic modernisation. This indifference began to change in the mid 70's and by the mid 90's the commercial landscape had been transformed by a host of policies designed to assist small firms. This political neglect, which is by far less effective, has many reasons.
