The Federation of Small Business (FSB) is flying the flag for self-employed people after the sector suffered two high profile knocks in the last week.

Appearing on Newsnight, a TUC spokesperson implied that self-employed people would rather be working, while separately a report from the Centre for Policy Studies (CPS) concluded that they should not be considered entrepreneurs.

The CPS wrote: “They do not generally seek to shoulder the role of an entrepreneur, driving innovation, challenging the status quo and going for strong business growth.”

But the FSB says it refutes this claim. In an open letter jointly published by the Entrepreneurs’ Alliance, it said: “People are choosing to start a business – it is not because they can't find a job. They don't want a job!”

More than 500,000 started their own business in 2013, while the overall stock of UK businesses has increased by the same amount since 2008. Research also shows that 70 per cent of new businesses are started at home.

The Entrepreneurs’ Alliance letter read: “The self-employed are spotting gaps in the market, starting niche businesses, embracing technology and Going Global at speed to cater to a rising international demand for British made and designed products.”