The number of small and medium-sized businesses in the UK is growing at the fastest rate since the financial crisis in 2008, according to new figures.
The UK Growth Dashboard 2015 is a new study by the Enterprise Research Centre (ERC) conducted in partnership with the Government's Business Growth Service. It examines the health of small businesses and entrepreneurship across the UK.
The report says that more than 600,000 net new jobs were created last year in the private sector and it concludes that British small businesses have regained the "ground lost" in the recession.
During the past seven years, it is estimated that while 13 million UK jobs were lost, 13.4 million were created over the same period. However, it was only last year that net private sector job creation became positive.
Commenting on the findings, small business minister Anna Soubry said: "Small and medium businesses in every corner of the UK have shrugged off adversity to create jobs and grow at the fastest rate since the financial crisis."
The research also shows that start-up and growth rates returned to pre-crisis levels in 2014. However, the findings show that only 6% of start-ups that survive go on to generate at least £1m in revenues after three years.
Across the UK, Northern Ireland has the highest proportion of start-ups reaching at least £1m turnover within three years. In England, London and Birmingham top the list of areas with above average rates of start-ups reaching this milestone. Close behind are Newcastle, Leeds, Manchester and Sheffield.
The researchers also polled GrowthAccelerator clients in England between April 2012 to March 2015 to identify the main barriers to growth for start-ups and SMEs. The biggest challenges cited were: Strategy and management (53%); skills and staff (39%); sales and marketing (38%); and finance (27%).
Professor Mark Hart, deputy director of ERC, said: "The UK Growth Dashboard … shows us that small businesses in every corner of the UK are growing at their fastest rate since the Great Recession, while more and more entrepreneurs have the confidence to take the plunge. Nevertheless, there remain big regional disparities in entrepreneurship and small business growth."