The Federation of Small Businesses (FSB) has challenged the NI Executive to use the new Programme for Government to reduce regulation and increase support for local small businesses, so as to redress Northern Ireland’s position in having the lowest employment rate of the 12 UK regions.
Figures released this week reveal that the employment rate here stands at only 69%, with just a modest decrease in unemployment related benefits of 600.
Wilfred Mitchell OBE, FSB Northern Ireland Policy Chair explained: “It is paramount that the Northern Ireland Executive implement a strategy within the Programme for Government to redress economic inactivity; one that recognises the role of small businesses as the primary employment providers.”
Research commissioned by FSB and conducted by the Ulster Business School last year revealed that small businesses in Northern Ireland employ more people than larger businesses and the entire public sector combined, and that they will provide 85% of the 22,000 new jobs that were forecast between 2014 and 2018 by the NI Centre for Economic Policy.
Mr Mitchell added: “Over 2,000 jobs have been lost in Ballymena alone with the closures of JTI Gallaher and Michelin, with 800 working their final shifts this week in Gallahers. Unlike larger firms such as these, FSB research revealed that 95% of small businesses in Northern Ireland have no intention to move from the local area in which they are located. Furthermore well over a quarter (29%) of small businesses have hired people who have previously been long-term unemployed.
“The evidence clearly illustrates that it is small businesses that will drive recovery in employment within Northern Ireland, however, as the recent FSB Small Business Index revealed, confidence amongst SMEs is at its lowest rate since 2013. This is due to the fact that small businesses are dealing with a raft of new cost challenges, including the National Living Wage and pensions auto-enrolment deadlines, so the Executive must do all in its power to reduce the regulatory burden and cut the cost of doing business.
“Small firms will be looking for some reassurance that no new challenges are on the horizon. The Programme of Government must clearly demonstrate that the Northern Ireland Executive will back small business and commit to a legislative programme that cuts the cost of doing business, increases employability skills and boosts enterprise in all corners of the country.”
