•number of private sector businesses in UK reaches new record of 5.2 million
•the business population exceeds 5 million for the first time
•small businesses employ 12 million people, with a combined turnover of £1.2 trillion, accounting for 33% of turnover in the private sector

Official figures published on 26 November 2014 show that the number of private sector businesses in the UK has reached 5 million for the first time at the start of 2014. This is a record annual increase of 330,000 businesses (up 6.7%) on last year.

There has also been an increase of 66,000 (up 5.5%) in the number of employing businesses, making 2014 only the second single year of growth since 2008.

The 5.2 million businesses fall almost entirely in the small category, with businesses employing fewer than 50 people making up 99.3% of the total number.

Business Secretary Vince Cable said:

“Despite a tough economic backdrop, the figures of an all-time high of more than 5 million businesses in the UK show that our talent for innovation and entrepreneurship is leading the way to recovery.

“It’s a timely reminder that small firms make up the majority of our business community and it is those with the creativity and commercial nous that will continue our legacy as a world-leading enterprising nation. Government has played a crucial role in enabling this growth by cutting red tape, increasing access to finance and supporting industry-led skills and training initiatives.”