Feature: Small businesses a goldmine for British economy

Britain's age-old reputation as a 'nation of shopkeepers' was confirmed Saturday with figures showing small businesses accounted for almost two thirds of all new private sector jobs created in the last five years.

Figures produced by the Department of Work show employment by small businesses has increased by 1,618,000 since 2010.

There are over five million small businesses in Britain, generating over 1.8 trillion U.S. dollars for the British economy, said the department in a statement.

"Since 2010, private sector employment has grown by nearly 2.5 million and small businesses accounted for 65percent of this," said a Department for Work spokesman.

"These figures demonstrate the contribution small businesses have made to the nation's record employment rate of 73.7 percent," he added.

The figures were released to coincide with Small Business Saturday, a campaign celebrating small enterprises and the role they play in strengthening local communities and generating economic growth.

The event is being celebrated today with various public events and visits by members of government to small businesses across the country.

Employment Minister Priti Patel said: "Every day small enterprises run by hardworking people like the local barber or cafe owner, are helping to create jobs and opportunities for others."

"Our welfare reforms and dedicated Jobcentre Plus staff are giving more people the extra support and flexibility they seek to take up new opportunities that these small businesses are creating as our economy goes from strength to strength," Patel said.

Small Business Minister Anna Soubry, said: "Our 5 million small businesses are the beating heart of our economy, providing millions of people across the country with the security of a job."

"I urge everyone to get out there today and support your small businesses, whether that be your local baker, hairdresser, mechanic or independent pub. And of course, your local high street is a great place to start any Christmas shopping," Soubry added.

Government critics claimed Britain's welfare and benefit reforms are forcing some people into self-employment as the only way of generating an income.

Trade union leaders and social charities have been among the critics warning the rise in self-employment was down to people being unable to find jobs or being made redundant.

One of the leading charities, the Joseph Rowntree Foundation warned recently that too many self-employed people struggle to make ends meet.

The trust's Helen Barnard said many people are becoming self-employed because they can't find secure jobs.

"The experience of many self-employed people does not reflect the image of the vibrant entrepreneur developing and growing an innovative, high-earning business, as often depicted by politicians," said Barnard.

"Many self-employed people work in low-paid industries, like cleaning or taxi-driving, and are unlikely to employ anyone else or grow into a bigger business. The typical self-employed person earns 40 percent less than an employee and is more likely to live on a low income."

Even French military leader Napoleon Bonaparte who waged war against the British two centuries ago is credited with referring to Britain as a 'nation of shopkeepers'.

More recently the former Prime Minister Margaret Thatcher made history as the daughter of a shopkeeper who reached 10 Downing Street, keeping alive that image of Britons circulating since the 1700s as a nation of shopkeepers. Endit