As the UK heads towards the ballot box, the National Enterprise Network (NEN) has laid out its policy for the future success of the country’s economy.
Following its Manifesto for Change, released earlier this year, NEN’s latest policy paper is based on the more recent research and sets out a plan for how a new government can make the UK competitive again – with a focus on the largest sector, its micro and small businesses.
The UK’s MSME (micro, small and medium-sized enterprises) accounts for 50% of the country’s GDP, 50% of its growth and 75% of its innovation as well as 33% of overall employment – the equivalent of nine million employees.
Alex Till, Chair 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 and 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 – a unique ecosystem of business support organisations based 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 sets out 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 policy 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 ensuring newly registered businesses are directed 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
Alex 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.”
You can read the report in full here.