Small businesses have been tasked with leading the recovery and
delivering the bulk of any economic growth the UK will see this
year (no pressure, then). But what should the government be doing
to help you in this endeavour? Here are a few suggestions...
With the government and the CBI in agreement that entrepreneurs
will be the UK economy's saving grace, and chancellor
George Osborne getting ready to dust off the trusty red suitcase
for his second appearance at the Dispatch Box next month, now seems
like an ideal time to tell the government what it could - or should
- be doing to support small businesses.
The interim management community has done just that. Interim
management provider Russam GMS asked its network of 11,000 managers
how business secretary Vince Cable could best help small businesses
in their efforts to drive the economic recovery, and got a panel of
judges including John Philpott, chief economist at the CIPD, and
professor Russel Griggs, chair of the CBI's Small Business Council,
to judge the responses.
The exercise resulted in two prize-winning tips for Vince, and a
10-point charter for the business secretary. The first of the two
winners said Cable could best serve small businesses by sending a
message of hope and optimism, and lifting the spirits of the UK
workforce, adding: "The 'cut, cut, cut' strategy has eroded energy
levels, spirit and the creativity needed to drive performance and
results".
The second winner argued that boosting skills levels would drive
economic regeneration, and that the UK should play to its strengths
by investing more in training in areas such as science and design:
"We should promote, train and invest in those work activities that
we are genuinely good at and in which we feel comfortable in
performing in industry."
According to Charles Russam, the firm's chairman, interim
managers "operate at the heart of the UK economy and as serious
small business owners", making them ideally placed to offer Cable a
few words of wisdom on the support small businesses need to drive
economic growth.
Here is their charter in full:
1. The SME sector is going to play a key part in the salvation
of the UK economy, but it needs as much help as it can get. SMEs
need better and continuous advice, particularly around strategy,
risk and general management.
2. The UK needs to build on its export markets and end the
reliance on Europe.
3. The demise of manufacturing in the UK is a major problem and
the UK needs to provide incentives for manufacturers to improve
efficiencies - which doesn't mean making cuts.
4. Government needs to address UK productivity, which lags
behind the US, France and Germany. The government needs to get
business leaders passionate about addressing productivity for this
to improve.
5. Train people in key areas where the UK excels such as law,
teaching, science, design and engineering, the arts and
pharmaceutical manufacturing, and develop our service
industries.
6. The demise of RDAs and Business Link has prompted a need for
alternative support organisations for UK SMEs. There needs to be
funding for SME advisers and business mentors.
7. Grants for research and development need to be made more
readily available to SMEs.
8. Prepare young people for business and sow the seeds of
entrepreneurialism at school.
9. Invest in people in good times and bad; the 'cut, cut, cut'
mentality is sapping energy and creativity from business.
10. Immigration is necessary - particularly where there are
clear skills shortages. It should be viewed as such, rather than as
a social inconvenience.
What would you add to this list? Is there anything else the
government could be doing to support entrepreneurs and help get the
economy back on its feet? Tell us below.