The National Enterprise Network has released a report entitled ‘Adding Value Across Enterprise’ that urges the government to prioritse enterprise support for small businesses in the UK.
The report, which was developed in collaboration with NEN’s members and carried out by Shared Intelligence, highlights the significance of NEN and other enterprise agencies in ensuring the survival and success of entrepreneurs, micro-businesses, and small businesses.
Speaking about the report, Leaders Council member Alex Till, who is the chair of the National Enterprise Network said:
“This report has been an important insight into the opportunities and challenges facing our entrepreneurs, micro-businesses and small businesses across the UK. Funding is vital for their survival and growth, as a crucial part of the economy and employment outlook. We will continue to work with our members to deliver the advice and support that they need, alongside working with the Government to ensure that funding is available and accessible, and the importance of these businesses recognised.”
With 5.5 million in the UK, small businesses account for 99.2% of all businesses, and micro-businesses represent 90% of businesses in England, employing over nine million people. They contribute 50% to the country’s GDP, 50% of its growth, and 75% of its innovation.
The report presents evidence that investing in enterprise support is necessary to ensure that micro-businesses and small businesses remain the backbone of local economies, contributing to local employment, economic value, and diversity in communities. One of the crucial issues highlighted in the report is the shift of funding and policy attention from Local Enterprise Partnerships to local government, which adds to the existing pressure on already stretched economic development teams.
This shift, the report argues, overlooks independent enterprise agencies that work locally to stimulate entrepreneurial growth and employment. Without adequate investment, the opportunities to level up and grow the economy will be at risk.
Micro-businesses and small businesses are facing challenges due to COVID-19, the cost-of-living crisis, and the ongoing impact of Brexit, which raises questions about future funding with the closure of the European Structural and Investment Funds.
The report emphasises the importance of supporting enterprise agencies to help small businesses through these challenges. NEN members, for example, have delivered an average of 585,549 sq ft (1,100 business units) to businesses every year over the last five years.
The report provides context for enhancing enterprise support at the start-up and local level, where enterprise-supported businesses survive and thrive for much longer than the three-year average for new businesses.
The report warns that a lack of investment could lead to further damage to opportunities to level up and grow the economy unless there is a complete overhaul in the way business support is delivered.
