SME Business News

It is often said that people have a short memory when it comes to politics, and so it should be no surprise that chancellor Alistair Darling should top a poll as the person most UK entrepreneurs hold responsible for excessive red tape and bureaucracy.

The survey by software firm Kashflow, showed 40% of small business owners blamed Darling for excessive form filling and red tape, while 23% blamed the European Union and just 21% recognised the real culprit Gordon Brown, who has spent the majority of the past ten years developing the art to perfection during his reign as chancellor.

Three quarters of respondents believed that bureaucracy had directly affected their business and 94% considered there to be more red tape than ten years ago.

Small business owners are concerned at the growing costs in time and manpower in form filling and reports, with the governments ‘one size fits all’ approach to regulation. SMEs often do not have the funds or professional resources to maintain such records and many believe that regulation should ‘fit’ the size of business more adequately.

Computer giant Dell is aiming its latest Vostro range of Notebook computers firmly at SMEs and start up businesses.

The Vostro range is available, as Henry Ford would say, in any colour as long as it’s black, and will dispense with some of the graphic processors that enhance games and simulations, to focus more on security and simplicity of use.

Dell have long been the forerunners in supplying business computers, mainly to larger users with extensive networking facilities and understand what software and hardware is really necessary  for this market.

The company will offer a leasing package that will allow SMEs to add machines to their network as required without the need for outside finance.

“Initially a small business will start up with a notebook, then a desktop and perhaps 2-3 more computers. We work with them to create a solution that will let them grow from start - for example by installing a small network and updating it. We put in a whole leasing package that creates all of that in a way that allows them not to tie up capital.” Says Dell.

A deal has been reached between the government and employers, that gives agency workers the same rights as full time employee’s, after 12 weeks.

While business secretary John Hutton sees the agreement as “the right deal for Britain”, small business owners are concerned over what they see as an already expensive option to hiring full time staff.

“Agency fees and high hourly rates mean temporary workers, far from being seen as cheap labour, are already a costly but useful way of responding to fluctuations in demand,” said the FSB’s Tina Sommer. “If that flexibility is lost, many small businesses will stop using temporary employees.”

With unemployment rising and the threat of recession looming the FSB says “This is the last thing that small businesses need.”

A survey of SME’s commissioned by Insuranz.com finds that many business owners are not aware what their insurance policies cover, with three in ten of new businesses admitting to having no cover at all.

It seems the small business owner considers the insurance question as problematical, being time consuming and complex.

The report also finds that as many as 30% of SME’s are unaware that they need Employers Liability insurance to cover sub contractors and temporary workers. The fine for not having this cover is £2,500.

New businesses are the most neglectful area of the survey where 32% have no insurance cover at all and 14% are unsure of what cover they have.

Under insurance or no insurance at all can put customers, staff and business at risk as well as risking business owners homes and any personal banking guarantees against their business, claims the report.

Doug Richard, former Dragons Den panellist and current head of the Conservative Party Small Business Task Force has called for drastic reforms of the Governments Business support regime.

The report found the current support system is ‘over complex, ineffective and undirected.’

Two thousand public bodies are currently spending £2.5billion on running three thousand support schemes, with Richard claiming that a third of the money is spent simply to tell customers where to find advice.

The report calls for a single national web based information service to replace organisations like Business Link and the like. The site would allow users to rate suppliers  information and advice on a system similar to that used by auction site eBay.

Government departments, agencies and regulators would be legally obliged to provide relevant information on the site and private sector businesses would be able bid for public service contracts through the same website.

Richard sums up “Our recommendations would create a single, web-based business information system and an open market for expert advice, in which the needs of the customer – business – would come first.”

Bus operator Stagecoach have revealed that eight buses on their fleet have been running on 100% biodiesel, manufactured from used cooking oil and other food industry by-products in an experiment, the first of it’s kind, started in October last year.

The project has cut CO2 emissions by 80% saving 550t of carbon.

The move is backed by the local Ayrshire council and local residents, who assist the company by supplying used cooking oil in return for discounted travel. How Green is that? Over 21t of used oil has been recycled during the last six months.

The downside is that engine manufacturers will not offer a guarantee on the engines being used in the experiment. Stagecoach is obviously monitoring this area very carefully and intend doing so for another six months before drawing any conclusions from the project.

The biodiesel buses are fitted with two fuel tanks. For the first ten minutes of the day the engines run on mineral diesel, switching automatically to biodiesel once the engine reaches its optimum operating temperature.

Council leaders in Croydon are demanding a meeting with NCP bosses to protest at the 15% increase in car parking charges in the city.

The borough council had decided to freeze its own car parking charges and hoped that NCP would do the same. Councillor Phil Thomas, Croydon’s cabinet member for environment and highways is concerned that increased parking charges will damage the local economy and deter motorists from using the city centre.

At last greedy councils are seeing the damage that ludicrous parking charges are causing to the local economy. For years parking has become more and more expensive as councils see it as an ideal source of revenue for very little effort. Now customers have a choice- and they are choosing not to drive around traffic laden town centres trying to find a parking space, only to pay through the nose for the privilege of parking their car.

The Federation Of Small Businesses and other groups representing small businesses, have been vociferous in their protest over exorbitant car parking charges for a long time, protesting that local trade is already losing business to out of town shopping centres, where parking is free.

Lets hope this government listens soon, before it is too late.

 Adam Hart-Davis is today launching a campaign with the Federation Of Small Businesses (FSB) to “Keep Trade Local” in a bid to save the local High Street from extinction.

Here is a promotional video:

The government enterprise department will allow SMEs greater access to public contracts by registering their business with www.supply2.gov.uk

Under the latest scheme small businesses will have access to public contracts around the UK with a value of £100,000 or less.

The move is part of the Department for Business’ enterprise strategy outlined earlier this year, to help give SMEs a leg up in acquiring crucial public sector contracts.

Business minister Shriti Vadera said: “Small and medium sized businesses need our support to expand. Many smaller businesses are more innovative, have lower costs and present better value for taxpayers than larger firms. Introducing Britain’s small firms to government procurement contracts online will provide opportunities to grow that they would not have otherwise found.”

The news is welcomed by small business groups across the country, with John Wright from the FSB claiming that the move should eradicate the false assumption that biggest is always best.

Small business groups FSB and ACS are among many expressing disappointment at the outcome of the Competition Commissions inquiry into the grocery sector.

The two year inquiry resulted in the Commission concluding that consumers are enjoying the benefits of competition, while totally ignoring the impact on independent retailing.

Several business groups have lobbied on behalf of small businesses who have seen out of town supermarkets and shopping centres decimate High Street shopping over recent years.

ACS chief executive James Lowman considers the commission has used the inquiry to judge competition between the big four supermarkets and totally ignored the needs of independent retailers.

“This approach ignores the critical need for a variety of retailers and supply chains. It is out of kilter with consumer trends towards more local shopping, and neglects the needs of many groups of consumers whose requirements are not properly met by the big four superstores.”

Clive Davenport of FSB was equally scathing, saying;

“Important issues such as the travesty of almost limitless free parking at out of town superstores while independent high street shops face ever-more stringent parking restrictions were not even considered.”