Ryan FowlerAs the UK heads towards the ballot box in just over a month, the National Enterprise Network (NEN) has unveiled its policy for boosting the country’s economy. Following its Manifesto for Change released earlier this year, NEN’s latest policy paper is based on recent research and outlines a plan for making the UK competitive again, focusing on micro and small businesses.
The UK’s micro, small, and medium-sized enterprises (MSMEs) account for 50% of the country’s GDP, 50% of its growth, 75% of its innovation, and 33% of overall employment, equivalent to nine million employees.
Alex Till, chair of NEN, said, “It is clear that over the last decade, entrepreneurs, start-ups, and micro businesses have largely been overlooked with no direct strategy in place from the government. The UK government’s role is to intervene where the market needs input – whether this be in policy, funding, or executing a long-term strategy to improve our economy. We have worked with NEN member organisations representing the whole of the country to set out a programme of changes we believe will enable small and micro businesses to thrive, grow, and deliver the jobs and economic benefits our country needs.”
The policy report, “Harnessing the Economic Potential of Our Small and Micro Businesses,” is based on research from NEN’s network of Enterprise Support Organisations. These organisations are embedded within their local communities, addressing skills gaps and the needs of new, emerging, and existing businesses with training, learning opportunities, 1:1 advice, and mentoring.
The policy document outlines key steps for a new government, covering finance and the economy, education and skills, improving social value, and levelling the field for minoritised communities.
Key recommendations include:
- Introducing a staggered VAT system with a lower rate for industries such as hospitality, leisure, and tourism, as well as start-ups and micros
- Relaxing criteria for Help to Grow programmes to include businesses with fewer than five employees
- Improving access to funding, including setting targets for banks
- Investing in entrepreneurship and start-up skills by directing newly registered businesses to national and local support
- Funding allocations for all new businesses for skills and training at key stages of development from start-up to growth and scale-up
- Setting targets to improve SMEs’ and micros’ opportunities to win procurement opportunities
Till added, “We don’t expect a new government to do this in isolation. Our network of enterprise support organisations is here to drive growth in the UK economy going forward. They not only provide a wide range of services, but as not-for-profit organisations, they re-invest surplus as matched funds where appropriate to support economic growth through skills, enterprise, and employability.”
