Interesting charts but their source repeats a common error by referring to a firm when there is no employees.
Every definition of a firm is a group of people in an employment relationship, business partners or some other relationship of two or more people.
The New Policy Institute has some interesting charts based on the government’s business population statistics, looking at the rise of businesses with no employees, .
Given what we know about the rise in self-employment, we would expect to see an increase in the number of no-employee businesses and that is what has happened over the last fifteen years.
Despite this, though, the share of turnover accounted for by these businesses is actually less than it was in 2000. Their share of total employment has risen from 13 to 17 percent while their share of turnover has fallen.
Turnover per worker has increased for the largest companies, fallen significantly for small firms and collapsed for microbusinesses. The number of non-employee businesses has increased by 74 percent, their total turnover is only up by 24 percent in real terms. That means a lot more businesses needing to be fed from a pot that hasn’t grown by…
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