A new UK talent strategy and SMEs
The UK Government has published a new 10-year strategy to make the UK a more enterprising economy in the world - and make it a leading place to start and grow a business. Released in conjunction with its FY08 budget, the strategy is entitled, “Enterprise: Unlocking the UK’s Talent”.
The strategy is designed to unlock the UK’s entrepreneurial talents, boost its enterprise skills and knowledge, and help new and existing business get funding to start up and grow. It also aims to ease the burden of regulation - particularly on small firms which feel most of its impact.
This is the first complete new strategy from the department for business, enterprise and regulatory reform (BERR), since its creation last year. Published jointly by HM Treasury and the department, it details five areas where government will focus its efforts. These are:
- Culture - developing an enterprise culture where everyone with entrepreneurial talent is inspired and not afraid to take up the challenge of turning ideas into wealth
- Knowledge and skills - ensuring that people and businesses have the tools to support the growth of their businesses
- Access to finance - ensuring start-ups and growing businesses can get the finance they need
- Business innovation - reinforcing innovations’ role at the root of all entrepreneurial activity
- Regulatory framework - recognising that unnecessary or complex regulation can stifle enterprise and have a disproportionate impact on small firms.
SME procurement
There will be independent review of the barriers to SMEs winning a greater proportion of government contracts, to be led by Anne Glover of Amadeus, who will chair an advisory committee to provide advice on necessary government action. Its objective is to look at reducing the barriers to SMEs competing for public sector contracts, within the scope of EU law and with the policy objective of obtaining ‘value-for-money’ and advising on the practicality of setting a goal for SMEs to win 30 percent of all public sector business within the next five years.
Anne Glover is a co-founder and chief executive of Amadeus Capital Partners and previously worked for Apax Partners as a member of the investment team and subsequently as a business angel investing in UK-based information technology start-ups. Having studied metallurgy and materials science at Cambridge, she sits on the boards of medical technology companies Optos and Glysure Ltd. She is a former chairman of the British Private Equity & Venture Capital Association venture platform and a member of the Government Technology Strategy Board.
SME exemption on new rules and regulations
The strategy is considering making exempt or simplifying enforcement of new regulation for small firms where possible. An independent review, led by Sarah Anderson, will recommend ways of giving small businesses greater certainty on how to comply with legislation, initially focusing on employment law.
Every year almost half of all businesses seek external advice about how to follow regulations, spending at least £1.4 billion. The government is commissioning an independent review led by Sarah Anderson into how it can implement policies to give small businesses greater certainty around guidance - including looking at the legal status of guidance, legal disclaimers, and other options. Actions delivering even a 5 percent reduction of the lowest estimate of the size of the market for business advice on regulation would mean a reduction in business spending by more than £72 million.
Sarah Anderson CBE ran her own company for 19 years - Mayday Group - a four branch specialist employment business and agency providing catering staff. Other business interests include being joint founder and director of Simple Solutions Ltd. She is also a non-executive director of Jobcentre Plus, the UK’s largest government agency and a council member of ACAS. In October 2005, she was appointed director of London Samaritans and has been a member of the Employment Tribunal Steering Board since April 2006.
Major items affecting SMEs and start-ups, in the budget FY08 are:
Extending SFLG
Extending lending and funding schemes including allocating a 20 percent increase to the small firms loan guarantee scheme (SFLG), extending eligibility to growing businesses more than five years old.
Women ECF
It is committing £12.5m to co-invest in a £25m capital fund investing in women-led businesses.
Mezzanine fund
A £30m support for mezzanine finance provision through enterprise capital funds to fill the market gap.
Enterprise education
- An additional £30 million to extend enterprise education to primary schools and further education colleges.
- A National Enterprise Academy, in partnership with entrepreneur Peter Jones, offering skills training and qualifications to 16 to 19 year olds.
- Funding for the National Council for Graduate Entrepreneurship to establish a national network of university enterprise clusters.
Business support
- Tailored support for young entrepreneurs, the over 50s and women.
- A set of detailed measures promoting business-to-business mentoring, work placements, skills training, improved careers advice on self-employment and access to business support and to finance for growth.
The strategy – “Enterprise: Unlocking the UK’s Talent” – is available at this link.
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© Chilli Publishing Ltd 2008 |
15 MAR 2008 |
