Tuesday, 18 November 2014

n light of new statistics revealing the small business community’s opinion of government, this week Axis Telecoms asks; what do small businesses think of government?

The Government Has a Key Role in Shaping a Favourable Business Climate

Because Axis Telecoms is a firm which aims to provide top quality, cost effective energy and telecoms services to SMEs around the UK, we know what small businesses need to thrive.

Essentially, SMEs need an economy that encourages growth. As the arbiter of national financial policy, the government has a key role in ensuring that this is the type of economy SMEs are presented with. A new poll which outlines what small companies really think of government suggests they’re not doing a very good job.

Simply Britain Pulse Check

According to Startup.co.uk, the new ‘Simply Britain Pulse Check’ poll, conducted by Simply Business, showed that over half of small businesses are disillusioned with both central and local government.

33% of respondents meanwhile, actually said they believe government is a hindrance to their growth potential. Various areas of government policy from red tape (33%) to changing energy prices (25%) were named as specific issues. Furthermore, when SME owners were asked what the government could change to ensure increased profitability, tax relief came top of the list. This was followed by energy processes, employment law and environmental requirements.

SMEs Are Not Getting the Support They Need

Simply Business’ CEO, Jason Stockwood, spoke out about the survey’s findings. Stockwood commented: “Sole trader and microbusinesses are the very heart of the UK economy, and it is these firms that are driving the country back to growth. But these firms are not getting the support they need.

“The government is designing policies according to what it believes small businesses need, but because of the specific set of challenges and risks faced by sole traders and micro businesses, government support is passing them by.”

Enacting More SME Friendly Policies to Promote Economic Growth

In other words, SMEs don’t believe that the government is providing them with the economic circumstances they need to flourish. Considering the fact that small businesses are the backbone of the UK economy, this suggests that local and central government need to enact more SME friendly policies to promote economic growth.