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SME Issues - Five Problems That Hold Small Businesses Back
As someone with an
interest in small business, you are probably
aware of just how many issues there are that
can affect it. A new report from the
Institute of Directors (IoD) has identified
the key issues that cause businesses the
most trouble.
While regulation, taxation and education continue to be of concern
to business of all sizes, the report
identifies five issues that are highlighted
specifically by small and medium-sized
enterprises (SMEs).
These top five SME concerns were:
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Late payment
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Lack of business finance
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National Insurance contributions
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Business rates
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Levels of government business support
Commenting on the release of today’s report, Miles Templeman,
Director General of the IoD, said: “While
figures for start-ups in business are
broadly favourable, this report demonstrates
some clear obstacles to growth, which need
tackling before they become endemic.”
Citing the key issue of late payment, Miles Templeman added: “At
present there are gaps in the Government’s
policy programme on SME issues. For example,
late payment was highlighted as the factor
causing the most significant negative impact
on smaller companies, yet government have
withdrawn support and reduced funding on the
very initiatives aimed at tackling this
growing problem. The new ministerial team
at BERR (Department for Business, Enterprise
& Regulatory Reform) will be judged by how
they tackle our members’ issues over the
next 12 months.”
The report’s key recommendations include:
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Rejection of the Lyons Report
recommendation proposing the
introduction of Supplementary Business
Rates
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Calls for a government led investigation
into the extent of late payment, its
consequences and potential solutions
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An appeal to the Government to reduce
the heavy burden of taxation on business
– especially in the areas of Corporation
Tax and National Insurance.
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The introduction of a clear set of
criteria requiring a certain level of
economic return for every pound spent on
government business support.
More information on employment issues is
available in our You and Work portal.
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