Putting the Economy Back on Track

The FSB has launched a series of five reports with positive proposals for putting the UK economy back on track.  The reports are based on the results of the FSB biennial membership survey. 

The recent financial turmoil has flagged up the pivotal role that small businesses play in the wider economy.  They make up 58 per cent of the private sector workforce and are the primary job creators.  It is the work, innovation and sustained growth of the small business sector that will help the UK economy through this period.  It is therefore vital that solutions are focused on this area.

The survey concentrated on five key areas looking at, not just short term fixes in the form of access to finance, but longer term actions that will help create a climate in which businesses can thrive, support their local community and continue to contribute to the economy.  Five key policy reports will be rolled out in the following areas:

Business Support and Finance: looks at the key issues of access to finance and business support; showing that banks are amongst the biggest barriers to the growth of a small business but will also be a key source of finance over the next two years . It also found that government sponsored business support is still perceived to have low impact on businesses;

Transport, Environment and ICT: looks at the wider context in which small businesses operate, showing the need to create a transport infrastructure that delivers at a local level for businesses, encourage businesses to be more energy efficient and make maximum use of the internet through buying and selling online;

Skills and Training: looks at skills shortages and training issues in small businesses flagging up the need to address basic skills shortages to support businesses and get people back into work.  Policy makers need to take a ‘think-small first' approach and greater representation of small and micro businesses on Sector Skills Councils should become a reality;

Crimes against business: highlights that 64 per cent of businesses were the victim of crime over a twelve month period, a rise from 57 per cent in 2006.  Crime costs every business an average of £13,354 and it is vital that crimes targeted against business are recognised and made a priority for reduction in every local policing plan across the country;

Work-Life Balance: highlights that 48.9 per cent of small firms are at risk of losing their homes, and becoming bankrupt if their business goes under; it should also be recognised that self-employment can be an important means for people finding it difficult to find work, to enter the workplace.