Self Employment grows in UK -but what is the truth behind

UK becoming the fastest growing "self -employment " capital may hold a slightly different story to the new full time businesses springing up everywhere. The traditional concept of self -employment
Further more these self employed people may be doing this as a requirement to survive rather than long term choice

Self-employment over the past decade

• 36% rise among over-50s
• 7% rise among 35 to 49-year-olds
• 18% rise among 25 to 34-year-olds
• 23% rise among 18 to 24-year-olds

Source: Labour Force Survey, ONS

The latest labor statistics from the Office for National Statistics (ONS) show that there are now 4.54 million self-employed people. That is about 8% higher than a year ago.

In fact, there are now 780,000 more people in employment than there were this time last year, and 40% of those are self-employed.

"The number of people choosing to be their own boss is up 8pc over the past year, faster than in any other Western European country

The UK is becoming the "self-employment capital" of Western Europe after an increase in the number of people working for themselves, according to a new report.

The IPPR think tank said the country had caught up with the European Union average of 14pc of workers who are self-employed.

The number has increased by 8pc over the past year, faster than in any other Western European country, said the report."

Last month Esther McVey, the employment minister, said that the middle-class children should believe that setting up their own business is every bit as good as going to university and working for a big company.

She said self-employment should be given the same social status and respect as the more conventional university route into employment.

Spencer Thompson, IPPR senior economic analyst, said: "Around 2,000 people a month are moving off benefits into their own business. The Government's response to the rise in self-employment has been to praise the UK's entrepreneurial zeal, while increasingly promoting self-employment as an option to job-seekers.

"Some have seen it as a negative development, having legitimate concerns whether a lot of the new self-employed are actually employees by another name.

"The self-employed come in many shapes and sizes. Some are entrepreneurs, driven by high-growth ambitions, innovation and disruptive business models, but many are sole-traders bands simply looking to get by or small businesses happy to stay at their current level.

"Many older self-employed workers are simply working longer, due to a combination of rises in the pension age and recession-induced falls in the value of wealth stored up for retirement."

Country Proportion of self-employment Greece 32pc Italy 23pc Spain 17pc Portugal 17pc UK 14pc Belgium 13pc Switzerland 13pc France 11pc Germany 10pc

The report was published ahead of the latest unemployment figures tomorrow.

Previous figures, published last month, showed the number of self-employed workers had grown from 3.8m at the start of the crisis to more than 4.4m (see below).

Official figures have also shown much of the growth in self-employment has been driven by older Britons.

Meet the older Britons reinventing their careers with self-employment

The Telegraph has previously spoken to a number of pioneers who have shunned retirement in favour of a new career. Some did it out of necessity, while others felt it was time for a new challenge. All expect to work beyond their state pension age, something that will only become more common in years to come.

David Buck, 59, was a fitness instructor who turned his hobby of microlighting (small planes) into a business

"I was a fitness instructor for 13 years," said David Buck, 59. He had to stop work suddenly in 2009, due to health problems. "I was doing 16 classes a week and one day everything locked," he said. "I went from running six miles a day to being unable to climb stairs." ... Read the full report: Retire at 55? I started a thriving business

There is a the factor that needs consideration-

• The numbers of people that may be working part time economy 
• How many are in the Black economy(non declared income)
• The capital required to go self employed
• The types of business
• The level of support being provided
• Isolvencies

Is this all new business or is it business that has been developed under the term self employment in a new format of  consultancy?
How many declare self employment for the benefit of avoiding the benefit cap