Job creation and business formation within Birmingham
Companies
| Companies No of Limited Companies created in 2007/8 (Companies House Figs) |
358 |
| Sole Traders started up & evidenced |
80 |
| Verified Companies formed |
438 |
Jobs
| New jobs total for Ltd Companies only |
716 |
| A new Ltd company produces 2.6 – 2.9 jobs in local economy (SBS fig) |
930 |
| Assuming 1 job produced for each sole trader plus owner |
160 |
| Total Jobs created |
1806 |
Salaries
1806 Limited Company Jobs Input a wage bill of:
| Average wage is £25,000 per annum = |
£45,150,000 |
| Assuming real range is mid at £18,000 = |
£32,508,000 |
| Or minimum wage level at £11,000 = |
£19,866,000 |
| 160 jobs created via 80 sole traders at (£10,000) (SBS) |
£1,600,000 |
TOTAL jobs income generated ranges from depending on
what income assumption is made. |
£45.15m to £19.86m |
Company Turnover
Turnover income generated through 358 new ltd companies
Assumes 51% of average turnover in Birmingham from SME’s with average new limited company generating £50,000 turnover in first year. (Treasury Figs) (High Growth do £200,000 average) |
£17,900,000 |
| Sole traders start-ups are assumed to do £15,000 turnover per annum |
£1,200,000 |
| Combined Turnover Total |
£19,100,000 |
Economic Value
Taking the lowest assumptions for turnover/wages/jobs in Birmingham
| BI start up services generated for the local economy a total of |
£38.96m |
| And for upper level assumption would be |
£65m |
These figures are verifiable company formation counts using national calculations (SBS, ONS, Treasury model.) Until new limited companies and sole traders are two years old we have no accounts to check their true value / workforce numbers.
However taking the minimum figures of a wage at £10,000 and counting the lowest average turnover rate, Business Insight generated into the local economy, a minimum total of £38.96m, for a cost of £750,000) (overheads/salaries/resources).
A Return of £52 for every £1 invested in Business Insight by BCC.