Think tank suggests devolution could drive SME growth
Cities that have greater control could drastically improve the fortunes of small businesses that operate within them, a leading think tank has claimed.
Centre for Cities believe that providing support to SMEs should be a key part of any devolution agenda and argue that such a move could have widespread economic benefits.
An analysis of small businesses suggested that they are capable of increasing demand for products and services while also boosting employment opportunities.
The top ten cities that have the highest concentrations of creative, digital and professional industries were found to be among the most successful in terms of wages, productivity and jobs worth.
The links between these factors suggest that more efforts are needed to encourage growth according to the think tank.
Many of the cities already feature strong economies but the report highlights the potential of building on those assets in order to support greater levels of innovation.
Such an approach could also help to attract inward investment from large businesses and multinationals it is claimed, providing a much needed financial boost for many firms.
Devolution could potentially open up many doors for smaller businesses, creating pathways to finance and skills that could encourage wider development.
Should authorities in big cities have greater control over skills, infrastructure and spending, then they could in theory be more responsive to meeting the needs of small businesses.
This should aid the financial situations of SMEs by encouraging growth and development opportunities.
This assistance could make all the difference for small firms that operate on tight budgets as it should ease pressures on their finances while also enabling growth.
Firms with financial concerns should look into their situations with a matter of urgency as they might be able to find suitable financials solutions.
Insolvency practitioners in London could provide the assistance needed for firms in the capital, helping to identify a number of options from restructuring to receivership.
Efforts are being made to boost the assistance available to small firms – often deemed the lifeblood of the economy – with the devolution of power just one pathway that is being considered.
By Phil Smith
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