UK SMEs back Small Business Bill

An overwhelming proportion of UK SMEs have backed the Small Business Bill that is currently manoeuvring its way through parliament.


In a survey by Key Capita Partners, 95% of small firms “emphatically backed” the proposals – designed to “remove barriers to growth” and “strengthen the foundations” of the economic recovery.


Four-fifths of companies thought the bill would provide greater access to funding, while 60% of firms believe it will help to address the issue of late payments.


Both are considered to be barriers to growth for small businesses in the UK, so it is understandable that firms are pleased to see the issues being tackled.


By opening up access to small business credit data, it is hoped that it will boost lending from many different sources, aside from regular banks.


It is hoped that this will help businesses to maximise their growth potential, especially given the importance of small firms to the UK economy.


The bill is therefore seen as a step in the right direction by many as it reduces the likelihood of businesses finding themselves in financial hardship. 


Late payments can severely impact smaller businesses that do not have readily available finance to cover the outgoings.


This can result in some firms facing company administration or a whole host of other insolvency procedures which can damage their reputation.


The bill is also set to improve transparency relating to company ownership issues, while a central register is set to be created at Companies House.


In order to take advantage of the growth opportunities available, many of the UK’s small businesses will need a solid foundation from which to start.


The proposals provide the basis for this and should aid in the development of a working environment that is conducive for growth and high profit margins.


Removing current levels of red tape are essential to creating the sort of economy that both Prime Minister David Cameron and Business Secretary Vince Cable are striving for.


By Phil Smith


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