smallbusiness.co.uk: Helping your business think big

The Small Business Service, the Government agency for improving enterprise culture in the UK, has failed British businesses for too long and must be axed, says David Frost, the director general of the British Chambers of Commerce (BCC).

Frost launched the attack on the SBS, echoing the words of former CBI director general Sir Digby Jones who heavily criticised the Government's approach to business support prior to his departure earlier this year.

‘Since the SBS was set up £79.3 million has been ploughed into it,’ points out Frost. ‘In our view much of that money has been wasted: firms up and down the country have suffered six years of failure on enterprise policy and despite many warm words from a long line of Government Ministers tangible support for small firms has been woeful.

‘It is time to end the cycle of failure and underachievement in supporting small businesses: the SBS does not carry the necessary weight in Government to achieve tangible improvements,’ he concludes.

The SBS has a seven-point action plan, but the BCC believes it is failing on six of these, pointing to its own research as evidence:

1. Building an enterprise culture: 83 per cent of businesses have seen no improvement and 24 per cent have seen a decline in the UK’s enterprise environment.

2. Encouraging a more dynamic start-up market: 86 per cent do not feel that a more dynamic start-up market has been encouraged and of these, 27 per cent believe that the start-up market has worsened. 42 per cent of those that have used publicly-funded business support thought it was relevant to their needs.

3. Building the capability for small business growth: 53 per cent think that the capability for small business growth has stayed the same, while 34 per cent say it has worsened.

4. Improving access to finance for small business growth: 83 per cent do not believe that it has got easier for small businesses to access finance for growth and 32 per cent believe it has got harder.

5. Encouraging more enterprise in disadvantaged communities and under-represented groups: this is the single area where businesses have seen a noticeable improvement, as 30 per cent of firms believe there has been tangible improvements.

6. Improving small businesses’ experience of Government services: 90 per cent of businesses have seen no improvement in their use of Government services, with 42 per cent saying their experience of services had worsened.

7. Developing better regulation and policy: 93 per cent of businesses have noticed no improvement in regulation and policy and 52 per cent believe that it has deteriorated.

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