Research has revealed that small and micro businesses across the UK are planning to create 1.9 million extra employees by the end of the year.
The report by Direct Line for Business also showed that 400,000 home-based businesses were looking to take on their first employee.
According to the research, small and micro businesses would expect new employees to work on average 28 hours a week, while businesses hiring their first employee would require them to work less hours (21 hours a week) this year.
Small and micro businesses surveyed said they plan to pay new staff on average £14,405 a year, whilst self-employed businesses intend to start new staff on £10,795 per annum. The job creation could prove a boost to the country, potentially adding up to £27 billion to the economy in new small wages.
The survey of 401 start-ups with up to 10 employees also looked at small business recruitment plans at a regional level, with London the most proactive area in terms of plans to take on extra staff. It found that 41% of start-ups in the capital were planning to take on extra staff this year.
The South West and North West were second and third in regards to recruiting, with 35% and 31% respectively looking at taking on additional staff in 2014.
British female small business owners were also found to be more likely to take on extra staff this year, compared to men. A third (33%) of women were looking to recruit additional staff this year, compared to only 26% of male business owners.
Jasvinder Gakhal, head of Direct Line for Business, said of the findings: “Small businesses are the lifeblood of our economy, employing millions of people, and our research shows that they are set to contribute significantly this year.
“With positive signs of economic growth, many businesses will want to take advantage by expanding – often by increasing headcount.”