Government embarks on review of small business policy  

A meeting between senior ministers and 20 of the UK’s leading business owners has marked the start of a major review of measures that the government can take to help small firms.

Chancellor, Alistair Darling, Business Secretary, John Hutton and Competitiveness Minister, Stephen Timms have met with a group of top entrepreneurs as part of a series of ongoing consultations with business owners across the country. The aim is to use the meetings as the basis for a new enterprise framework.

While the expansion of small firms in the UK has kept pace with other European countries, it still lags behind the rate of growth achieved by the US.

One reason for consultations is to give ministers the chance to ask entrepreneurs what the government can do to help SMEs take advantage of the new opportunities of increased globalisation and where they think public policy is supportive and where it is not.

John Hutton said: “Britain has seen a significant increase in the numbers of small businesses in the last four years. We must now build on this success and ensure these small enterprises grow and take advantage of the new global markets.”

He added: “That’s why I have asked some of Britain’s most successful business people to tell us what barriers they faced and give us their ideas on what more government can do to ensure we make the most of the entrepreneurship of the British people.”

John Hutton and Stephen Timms are set to conduct 14 similar meetings throughout the UK over the next two months.

Other topics that will be discussed at the meetings include supporting an environment for business growth, the role of enterprise as a tool for closing the gaps between regions and social groups, and how best to encourage individuals to be more enterprising.

Stephen Timms said: “There are more than one million more people working in SMEs than seven years ago so there are signs of growth. The government now needs to build on this success. We also need to be sure we keep renewing and refreshing our knowledge on what barriers to growth businesses face today.”

David Frost, the director general of the British Chambers of Commerce, welcomed the review of small business policy.

He said: “This is good news for small businesses, but it must lead to a cross-departmental strategy, ensuring that the needs of business are considered in every area of government policy.”

Mr Frost added: “Small firms contribute so much to our economy, but are everyday having to contend with a range of barriers. From the difficulties in finding skilled employees to the challenges of an overburdened transport infrastructure, the needs of business extend far and wide. Enterprise in the UK will only thrive if its needs are at the heart of every department, and we look forward to working with the government to make this a reality.”


Date:21 September 2007

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