The number of small and medium sized enterprises in the UK increased by 200,000 in the last year, revealed statistics from the Department of Trade and Industry (DTI).
The DTI said there were an estimated 4 million SMEs in the UK at the start of 2003, compared with 3.8 million at the start of 2002.
Almost all (99.2%) of these companies were small, meaning 49 of fewer employees, with 0.6%, or 26,000, companies classed as medium sized, meaning between 50 and 249 employees.
Only 0.2%, or 6,000, of the firms were classed as large SMEs, employing 250 or more people.
SMEs accounted for more than half of the employment (58.2%) and turnover (52.4%) of the UK, said the DTI figures.
Small enterprises alone accounted for 46.2% of UK employment and 38.3% of UK turnover.
Enterprise Minister Nigel Griffiths said: “"Small and medium-sized businesses are the engine room of the UK economy.
“They account for 99.8% of the business population, employ over 12.6 million people and contribute more than £1 trillion in turnover.
“I am delighted that the sector is growing as a whole and that an unprecedented number of new businesses have been set up.”
