New research commissioned by the Department for Business, Innovation and Skills (BIS) and carried out by the Longitudinal Small Business Survey has found that smaller businesses are taking on more staff. In a report published earlier this month, the survey of more than 15,000 owners and managers found that almost a quarter of small and medium-sized employers had more people working for them in 2015 than in 2014. Only 1 in 10 of those surveyed reported a reduction in staff, down from 21% in 2010.

Small Business Minister Anna Soubry said:

'This survey shines a light on the small businesses that drive our economy and employ millions of people across the country - and it’s good news that small firms continue to employ more people.'

The survey also found that:

• 95% of employers use the internet for work, 76% have their own website and 55% have a social media profile;
• 81% of SMEs that applied for finance secured some or all of what they asked for with bank overdrafts being the most common type of finance;
• Peer-to-peer lending and crowdfunding made up 5% of finance raised;
• Late payment problems continue with some 30% of employers reporting issues with late payments. Tackling this problem is an important component of the new Enterprise Act.

A separate survey for businesses with no employees was also carried out. The survey found that an encouraging three-quarters of these businesses made a profit in the previous year.