Small businesses are critical to the future of our economy
Date published:
The Chamber’s latest column for The Journal by Chris Kelsey, public affairs manager
Small and medium-sized businesses are the bedrock of the North East economy, making up 99.9% of our business base and employing over one million people.
The government’s new Small Business Plan, Backing Your Business, published at short notice last week, recognises this and sets out a broad framework to support growth, skills and long-term resilience.
The plan is built around five key pillars: removing barriers, improving access to finance, strengthening local economies, building future skills and opening up new opportunities. These themes align closely with the challenges we hear from businesses across the region.
There is much in the detail reflecting the current pressures facing small businesses, including proposals on late payment enforcement, new Start-Up Loans and improved access to equity finance. The plan also highlights the importance of licensing reform, digital adoption, apprenticeships and export support.
A new Business Growth Service, designed to help businesses find the support they need more easily, is a practical step that has long been called for. If implemented well, it could simplify what is often seen as a fragmented support landscape.
There is also a welcome focus on place-based growth, high street regeneration and inclusive entrepreneurship. A £1.2bn commitment to skills and further reform of the apprenticeship system underlines that economic growth relies on a workforce that is adaptable and well supported.
While the plan outlines a clear direction, delivery will be the real test. Proposals on tackling late payments are open to consultation, with a deadline for responses on 23 October, and the Chamber will be submitting a response on behalf of North East businesses.
Many of the priorities set out in the plan reflect those in the Chamber’s current Stronger, Fairer North East policy plan, including access to finance, skills and simpler local support. These are the issues our members raise time and again.
The North East is built on the strength of its small businesses. They are critical to the future of our economy, our communities and our places. If the plan is followed through, it could help unlock some of that potential, but businesses will be looking for action, not just ambition.