UK needs US style small business laws

The UK government formed after the general election may have to turn to the United States and explore their ‘special partnership’ for something that extends past international politics.

By using American style laws to encourage small business growth within the UK the economy may be driven forward according to research from leaders in UK small business.  The research found that much of American job growth is fuelled by small businesses.

In America, firms that have less than 500 employees make up 64% of all of 22.5m new jobs created between the years of 1993 and 2008, according to statistics from the US Bureau of Labor.

The National Small Business Association states that any business with less than 500 employees is defined as a small business, but the average small business in America only has five to six employees.

President and CEO of the NSBA in Washington, Todd McCracken stated that the laws were created to help people get their businesses off the ground.

However, in Britain, the FSB (Federation of Small Businesses) and the CBI (Confederation of British Industry) said that within the UK there is little support for small businesses.

In response, the former Business Secretary Lord Peter Mandelson, stated that there is a new scheme called ‘UK Finance for Growth’ that will look over all publicly funded capital schemes to help British small businesses get the finance that they need in order to help promote the UK economic recovery.

However, economists are worried that changes in national insurance, regulations, and taxation will hurt small businesses instead of helping them.