A key factor missing in many reports - small business growth

In the UK, 99.9% of all businesses hire under 250 workers and even only 0.6% of the 99.9% hire over 50 workers. However, the small businesses hire 48% of the total employment and only generate 33% of the total turnovers. The employment and turnovers clearly show an economy of scale that the larger firms have greater productivities than the smaller ones. The number of the small businesses increases faster than the number of the larger businesses. This is very easy to understand that it is much easier to establish a small business than a large one. However, the productivity of the entire economy could be pulled back by the increasing number of small businesses. It is definitely wrong to limit the increase in the number of small businesses, as all great businesses have experienced their early "little" period. I think that to improve the productivity we should encourage the expansions and growth of the small businesses. The growth of small businesses has been ignored by many government reports, including some reports from the parliament and the Bank of England. Usually we focus on how many new jobs are created in the entire economy and each sector of industries instead of in different sizes of businesses. It is difficult to precisely measure the growth of small businesses in terms of the number of labours employed as small businesses are much more flexible to change their number of employees. To ease this problem, we might be able to use the costs of labour as our measurement. The cost of labour does not only depend on the number of employees, but also depends on the quality of employees. It can give us a broader image of how the small business is growing and help to create policies to help small business growth and improve productivity.