Many business owners are apprehensive as to whether spending cuts will see business support organisations and training schemes scrapped.
The future of organisations like Business Link and the Chambers of Commerce was one of the most frequently expressed concerns by SMEs in the latest BusinessWings survey.
In the week that David Cameron revealed government plans for tackling the budget deficit in the first Queen’s speech since taking office, BusinessWings asked an assortment of some of the UK’s leading small business owners the following question:
How can the government best protect small businesses and the wider economy when slashing the budget deficit?
The £6bn cuts in public spending outlined for this year are only a taste of what’s to come as the government seeks to reduce the largest deficit in the EU.
Many business owners insisted that the damage could be limited by learning from SMEs how best to cut costs without compromising service delivery
Business owners admitted that, like everyone else, businesses will suffer to some degree in the next few years. But many insisted that the damage could be limited by learning from SMEs how best to cut costs without compromising service delivery.
“Small businesses need to be reassured that they will not lose the valuable help they receive from organisations such as the Chamber of Commerce or Business Link. These organisations are a vital source of advice and mentoring for us, along with the training and funding they provide.
“If they were scrapped in order to cut the deficit it could be catastrophic for many companies. Larger businesses will be fine as they are able to use privately hired services to offer the counsel they require, but small businesses will be the hardest hit.
“The most crucial thing is that the new government encourages or even forces banks to lend, which will then hopefully counterbalance the impact these cuts could have.”
Mick Spain, director of Great Guns Marketing
“I run a small business with admin support that I buy in and two interns from the Future Job Fund. Whilst I am training up the interns, the Future Job Fund are providing me with excellent admin and marketing support, so that the business is able to expand at a greater rate.
“I envisage within the next two years that I will employ someone as an assistant, but it’s the scheme that is supporting my company to expand so that I can employ someone. It is also giving young people invaluable real life work experience.
“If the Government cuts the funding for this scheme, it will have an impact on small businesses and companies. Those looking for young employees with experience will find it more difficult sourcing a suitable candidate. Small businesses which might not be able to take an employee on won’t be able to expand.
“Secondly, there are many young people who have been unemployed for more than nine months who are able to benefit from this scheme. I have interviewed talented and committed young people who are desperate for a chance to gain experience and have a regular job.
“This scheme is giving them a chance. It is also helping towards the success of small businesses, which I believe is vital to get the UK out of recession.”
Susan Heaton Wright, owner of NSN Productions
“Having worked in local enterprise for the past few years, I believe there are some resources provided by the government that do not serve the small business owner well.
“Grants seem to be sometimes awarded to unworthy causes, middlemen take too much out of funded projects and red tape seems to bog down the average small business owner. Therefore if they made cuts to these types of services and rationalised administrative elements, no doubt monies could be saved and businesses could focus on creating GDP and new job opportunities for the people and the country.”
Jacqui Tillyard, business coach and trainer of Jacqui Tillyard.co.uk
“A key consideration for the government is to avoid stifling entrepreneurialism – particularly among SMEs which are the lifeblood of the nation.
“The repealing of some of Labour’s laws on civil liberties and the strangulation of EU red tape is a good start. However we need more freedom, especially from EU employment laws, which are making the UK less flexible and diminishing our ability to stay agile – something which is crucial in this climate.
“To compound all this the incentive for growing your business is about to be slashed, if reports are true, with the rise of Capital Gains Tax to 50%
“I’m heartened by Vince Cable’s commitment to streamlining regulations. Let’s hope he puts his money where his mouth is for the long-term benefit of us all.”
Margaret Wood, managing director of ICW Modular Glazing
“It is unrealistic to expect small businesses to be unaffected by cuts in spending, but I think the government should remember that some of the most dynamic and cost-effective services are provided by the SME sector and that when managed well we can be a big part of the solution.
“As an example of real change that would cost little, now would be an excellent time to tackle the lack of competition in public sector procurement which favours larger firms. I would not be expecting any sort of ‘protection’ on behalf of small firms, just a greater chance to show what we can do.”
Mike McHugh, MD of Hyco Manufacturing
