A think tank has called on the government to rethink how they support growing small businesses in order to address their specific needs.
The Management Consultancies Agency suggests that if support was targeted to individual companies the government could identify those looking to expand greatly.
They also want to see regulatory timetables created for each business to avoid huge piles up of paperwork, plus they’ve called for the funds available to SMEs to be brought together in order to have a fewer number of them.
MCA also want the Department of Business, Innovation and Skills to assess exactly how the government “understands and is sympathetic to business needs” in order to make compliance requirements fit them better.
The MCA director, Paul Connolly, said: “Understanding those SMEs with a strong appetite for driving their business forward from those that do not is crucial to stimulating more robust growth amongst SMEs.”
“For instance, focusing on those entrepreneurial SMEs could have the collateral benefit of helping identify those sub-sectors that can best respond to the demands of the modern economy.”
Kirsty Birks, the vice president of MCA, said: “Middle-sized, owner-managed firms, are well placed to innovate. With Digital systems reducing the costs of risk-taking, they are able to move more quickly and more cheaply than before and are unconstrained by the governance structures of large PLCs.”
“These owner managers understand the relationship between their actions, image and brand. They’re genuine entrepreneurs because they are their business.”