SME Business News

John Wright, FSB National Chairman  comments:
“As the country goes to the polls next year, unemployment and public debt will still be high. An incoming government – of whatever hue – will be placed in an awkward position; it will be forced to make some tough decisions to steer a steady course through very choppy waters of recession and then into recovery.

Once again, small businesses will be at the heart in restoring the UK into recovery. They can only do this if they are allowed to get on with business as usual. Britain’s five million small businesses will have their plans in place to grow and to flourish, many of these plans will be fragile but important nevertheless.

An incoming government must make sure it nurtures these fragile plans, creating the right conditions for entrepreneurs to thrive by enabling them to guide the economy into a period of steady and credible growth.

One of the most important things that must be done in the coming year is for banks to return to their normal lending criteria, and to start playing their role as lenders with a large dose of modesty. The FSB has long been calling for more competition in the banking sector and will welcome a new year which sees more finance options made available to small firms. This should include non-UK retail banks.

Another option would be the encouragement of council-run banks, following the Bank of Essex model. By turning Post Offices into Post Banks we not only save our valuable Post Office network, but we also provide a further source of funding for small firms.

Regional Development Agencies should be turned into regional finance houses, using funding from the European Investment Bank and pushing the Enterprise Finance Guarantee and regional venture funds.

Until the 1970s, regional stock exchanges existed in places such as Bristol, Cardiff, Sheffield, Halifax and Swansea. At their height there were 22 regional stock exchanges in the UK. The London Stock Exchange must not continue to monopolise equity finance in 2010. We need regional stock exchanges back and many of them, as soon as possible.

One way out of recession and into recovery in 2010 for many small firms is through exporting goods and services. Exporting can overcome the hardship of recession. Exporters however, need a helping hand from the Government.

The Government should also make it easier for budding entrepreneurs to set up in business by introducing measures such as an Enterprise Allowance Scheme which would provide a small income for those wanting to go it alone in 2010.

Employment is another key issue for the coming year. Unemployment levels are still going to be high, and small businesses are absolutely crucial to fighting this trend as they are the country’s main employers, with more than half of the private sector workforce employed in small firms.

To ensure small and medium sized enterprises create the jobs needed we must reform JobCentre Plus, to include a dedicated business manager in every job centre, to focus on the needs of small and medium-sized businesses, and to reconnect jobseekers with the country’s job providers.

2010 must see systems put in place to connect small businesses with school leavers, graduates and those seeking work. Apprenticeships must be simplified and their existence promoted. Group apprenticeships programmes must be the norm throughout the UK. The agreed moves towards graduate internships in the new year must and can succeed.

2010 must see the route to recovery. Small businesses deserve a big vote of confidence and the sector in turn will return the compliment with jobs, guaranteeing a sustainable recovery. 2010 may be a general election year, but for small firms it will be business as usual as they strive to complete the route from recession and back into recovery.”