Small business at the heart of government

NB: This blog was one i wrote for the European Confederation of Young Entrepreneurs on 31 Jan 2014 and it can be found here

The backbone of the UK economy are small businesses and start ups, they are the wealth, job and skills creators, they are the innovators and they are core to ensuring the UKs stable economic growth going forward. However, is the voice of small business actually heard at the heart of government? For that matter, how many countries can truly say that small business and startups have a seat solely for them at the cabinet table?

With big business, the government’s engagement is strong, the companies have policy, lobby and press teams to ensure their voice is heard by policymakers and therefore, government does listen. When it comes to small businesses, governments tend to talk a good game, they say they are listening, but is that the case? If they are not, where does accountability lie? Ultimately it must lie with the Department Head, the Secretary of State, this is the person that has a senior cabinet position, the person who is the business champion within Government. But when the influence of big business in the department is strong, the voice of the small business person has a tendency to be crowded out.

What is the solution?

There must be a small business champion, a person who’s sole focus is on small businesses and entrepreneurs, a person who sits at the senior table and has the credibility and influence to raise the issues that startups and small businesses face directly with senior cabinet colleagues. Most importantly, their position must be one where by they can effect real change.

During the recent Federation of Small Business Annual Policy conference, one of the speakers was the Shadow Secretary of State for Business, Chuka Umunna MP and what he had to say focused on exactly this issue. “We need government to be a better servant – and customer – of our small businesses and to make sure that entrepreneurs’ voices are heard at the top table. A UK Small Business Administration is necessary to realising this ambition. Based on the best examples from around the world, a UK Small Business Administration would create a step change in the opportunities for small businesses.” Chuka’s full speech can be found here.

As the power shifts from west to east, everyone from business to government must think creatively about how we can maximize our strengths. In the UK we have always been a nation of innovators and inventors, we were famously called a nations of shop keepers and as I mentioned at the start, small business and startups are core to economic growth and they will increasingly be so going forward. But we need to create the right ecosystem and I think the establishment of the UK Small Business Administration would be a big step forward and a real game changer. It would help develop a culture of support and practical action, which will drive successful small business growth, encourage entrepreneurial talent and help create the worlds leading companies of tomorrow.

Written by Alex Mitchell

I am the Founder of Causarma, a strategy and campaigns agency that is focused on Enterprise, Youth and Sport. I am also the Founder of Kit Us Out, a charity supporting Para Athletes from developing nations through the provision of key kit and equipment. I am the current Chair of the IoD 99, a network of high growth young entrepreneurs. I am also VP of the Confederation of Young Entrepreneurs, a network for Founders across Europe focused on Scale up Growth You can follow me on Twitter (www.twitter.com/AlexDEMitchell) and Instagram (www.instagram.com/AlexDEMitchell

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