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SMEs Deserve More Financial Support as Government Disappoints

The Government is being urged to re-think its approach to supporting SMEs after a new survey revealed the vast majority of entrepreneurs do not think enough is being done to back small businesses.

Small and medium-sized business are not receiving enough support from the government, with entrepreneurs suffering from a lack of financial aid. A new survey from Aldermore has revealed that just one in five businesses think there is enough support from the Government, with a further four in ten calling for better enterprise and training.

SMEs are the lifeblood of the economy and deserve to occupy more of the government’s regard. Particularly as we creep closer to the Brexit deadline, Britain needs its entrepreneurs and start-ups to represent the country’s competitive edge. These small and innovative companies tend to be braver than larger and older counterparts, easily embracing new technology and bolder services.

According to the new survey, more than half of businesses believe a cash bonus or some form of monetary award would help their business, with many struggling to obtain finance via more traditional methods. It is important these firms have support, and if the government cannot deliver, there are alternative third parties.

At the Credit Protection Association, we chase down unpaid invoices and difficult late payers and restore some financial stability to our members. Credit management and debt recovery is a cleaner alternative to bank loans, where our members’ money is recovered rather than borrowed from someone else.

The research also highlighted concerns around existing small business initiatives that are already in place. Four-in-ten small businesses said they were aware of government-funded start-up loans, but only six percent said they had used them. Some 36 percent said they knew about grants for taking on apprentices, but only four percent said they had used them.

When asked what kind of support they would like the vast majority of entrepreneurs responded with suggestions that revolve around finance. There was support for the creation of an Entrepreneur ISA, targeted specifically at those looking to start their own business and the idea of a Small Business Savings Allowance that benefits the self-employed.

Aldermore's research revealed why such support is much needed: over half of businesses surveyed hold less than £1,000 in cash flow while 1-in-7 are experiencing cash flow problems. This suggests over 750,000 self-employed business owners across the UK are experiencing financial difficulty.

A large majority of the British business community is still hesitant to embrace the digital age. Many large and older companies prefer traditional concepts and distrust new technology and the new workers needed to maintain it. As a result, these businesses are putting their prosperity at risk, and their reluctance does not hinder the pace of advancements around them. Startups and innovative SMEs, in contrast, embrace the new and search for the very boldest and competitive systems to show up rival international economies.

With the Brexit deadline fast approaching, we need to keep pace with our rivals. Utilising the newest technology and operating the most advanced machinery will illustrate the confidence of our business community.

Nonetheless, these scrappy startups struggle to attain funding, with some owners forced to dip into their personal savings to get started. This is not fair for these small business owners, nor is it fair on Britain’s financial outlook without these brave entrepreneurs. The government has helped a little, but their initiatives have failed to filter into the mainstream. Entrepreneurs need more than extra cash, they need reassurance that their business finances will not only survive the next year but will thrive for many years after that.

At the Credit Protection Association, our debt recovery services chase down unpaid invoices and recover residual debt, restoring a stronger financial confidence in our members. As a result, many have gone on to invest in new technology, a larger workforce, training schemes and even renovations within their offices. CPA is also a credit management company, and we urge our members to utilise our credit checks and status reports on all their customers and suppliers, keeping their new financial power protected.

We fight to the tooth for our members, particularly those who have suffered through late payment and bad payment practices. Furthermore, we recently created a new department within our company dedicated to getting our members rightly compensated in accordance with the Late Payment of Commerical Debts (Interest) Act 1998. This has unlocked hidden cash and potential for our members and allowed them to continue pushing down barriers and subverting traditional concepts.