Small business is very big business in the UK.
Covering the range from sole entrepreneurs to enterprises with up
to 250 employees, small and medium-sized enterprises (SMEs) make
up 99.8% of all UK businesses.
Yet there can be a sense that they don't get a “seat at the
table”, that they struggle to get heard in the national
conversations about trade and economic growth that are dominated
by the country's largest companies.
Bleak images of high streets with shuttered shops highlight the
concerns of communities feeling hollowed out by economic forces
beyond their control. After a decade of large retail chain
closures, the 2 years from the start of the pandemic alone saw a
net loss of 9,300 retail outlets on high streets in Britain, with
department stores, pharmacies, clothing stores, pubs and banks
all closing down.
In the final quarter of 2023, one in every seven high street
shops were closed. Average vacancy rates across England are
13.5%. 69% of small businesses say that there are vacant units on
their high street.
Rt Hon Chair of the Committee
said “Britain's small businesses are the quiet
powerhouse of our economy — but too often they are locked out of
the decisions that shape their future. While a fortunate few
dominate the corridors of power, too many small firms fight
battles alone: battling soaring rents, battling unfair business
rates, battling to access capital, contracts and customers.
“This inquiry is about one thing: giving small businesses the
voice in the national debate that they deserve, to build a growth
strategy that works not just for the giants but for the grafters,
the builders and the job creators who power our communities and
high streets.”
After last year's election, the newly reformed Business and Trade
Committee reached out to businesses around the country to get a
sense of their key priorities - the opportunities and blocks they
face in their central role driving the UK's unifying growth
mission.
What emerged clearly was the drive and energy of Britain's small
and medium-sized enterprises (SMEs) – but also that Britain needs a business
plan. Overlooked gaps and misalignments in the
regulatory and business support environment are holding back
British entrepreneurs.
There are big questions around business rates and commercial
rents as well as the finance and support needed to start and then
grow a business. The Government has said it will “set out its
vision for support for small businesses” this year. But
unlike the Industrial Strategy, there has been no Green Paper to
allow small businesses to consider what's on the table or input
their views.
So today the Business and Trade Committee is launching an
inquiry on the UK's Small
Business strategy - starting this morning with an initial
quick tour of high streets to meet with some of the local
businesses that bring them to life, alongside a wide call for
evidence and the launch of a national survey (click here to add your
voice).
The Committee wants to hear direct from Britain's small
businesses on what really matters to them as they try to thrive -
or just survive. The results will feed into Government planning
for the strategy.
Interested stakeholders are now invited to join in our national survey
and/or submit evidence on any or
all of these inquiry questions by July 16:
Strategy
- What key issues should be addressed
through the small business strategy?
- How can policymakers ensure that
the voice of small businesses' is heard in government?
Starting a business
- How straightforward is it to start
a business, and what difficulties do entrepreneurs face when
starting up?
- Do small businesses currently face
any challenges in competing with larger firms? What can be done
to “level the playing field”?
Supporting growth
- How accessible are public
procurement processes for SMEs, and what are the consequences of
the Procurement Act 2023 for small businesses?
- What is your assessment of the
export support available to small businesses?
- What are the current challenges to
the long-term sustainability of the high street, including
ownership of the high street, and what are the consequences of
these trends for SMEs?
Costs
- What are the key cost pressures,
such as energy prices, facing SMEs, and how should these be
addressed?
- What is your assessment of the
current overall tax regime, including reporting requirements, for
SMEs, and how could it be improved?
Business support
- Does the Government's current
business support offer meet the needs of SMEs, and how could the
offer be improved?
- Do family-run businesses face any
specific challenges, including ‘red tape', and what support do
they require to meet these challenges?
Improving productivity
- What has been the experience of
small businesses in accessing banking services, and how does the
Post Office Banking Framework support their needs? To what extent
does this framework also provide adequate access to financial
guidance and advice?
- How effectively are
productivity-enhancing practices, such as new technologies, being
shared and adopted among SMEs? Is the Innovate UK Catapult
Network meeting the needs of small businesses?
Implementation
- How should work across multiple
government departments, mayoral strategic authorities, and local
authorities be coordinated to support the growth of SMEs?
- What metrics should the small
business strategy use to measure its success, and how should
delivery against these objectives be monitored?
