Small firms 'creating the majority of jobs'

  • 1-19-2012

Small firms 'creating the majority of jobs'

Date posted: 18 Jan 2012

Published by Tim Hill

Small businesses across the eurozone have been found to be responsible for the majority of job creation over the last decade, new figures from the European Commission (EC) have revealed.

According to data compiled by the international organisation, 85 per cent of new jobs delivered between 2002 and 2010 were from small to medium-sized enterprises (SMEs).

This is despite the fact this group made up just 67 per cent of all corporations during the period.

Furthermore, micro firms - those with ten employees or less - were found to have delivered 58 per cent of net employment growth for businesses, making the prosperity of this group integral to the future wellbeing of European economies.

Commission vice president Antonio Tajani, the minister responsible for entrepreneurship and industry, said: "In this critical time for European economy, we see small enterprises delivering and confirming their role as main generators of new jobs.

"Their significant share in job creation highlights the greater than ever economic relevance of SMEs and the need to support them at all levels."

He added that this group should therefore clearly be the main focus of governmental stimulus efforts, as SMEs across the region look set to play a key role in any economic recovery.

Overall, the eight-year period between 2002 and 2010 witnessed a net increase in eurozone employment of 1.1 million jobs per year.

The news follows a recent EC proposal targeted at filling skills gaps that continue to be prevalent across the eurozone.

Modernisation of the Professional Qualifications Directive has been put forward by European MPs, with a focus on better facilitating the movement of top professionals between EU member states. It will mean these individuals are better able to move freely between countries, safe in the knowledge that their qualifications will be recognised in each country that they work.

 


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