Shropshire firms give backing to new government plan for small businesses

This week, the Government launched its long-awaited plan for the country's 5.5 million SMEs, a package of policies which it described as the "most comprehensive support package in a generation".

The proposals announced this week include a £1 billion boost for new start-ups, extra mentoring support, and new legislation to enforce payment terms. A new Business Growth Service will also be created to help SMEs access advice, funding and support more easily.

Now, an organisation representing Shropshire businesses says the new policies will help smaller businesses, with a warm welcome for legislation designed to tackle late payments - regularly cited as one of the biggest headaches for small firms.

"Small businesses are the backbone of our local economy – latest figures show we have well over 20,000 SMEs across the county, making up around two thirds of the workforce,"  said Ruth Ross, Shropshire Chamber of Commerce chief executive.

“This is a much-needed step forward in recognition and support for SMEs. Late payments, access to finance and business support are all issues which we know have held back many smaller firms. 

“Late payments in particular – regularly highlighted in Shropshire Chamber’s quarterly economic survey - are an established barrier to economic and business growth, and hit the cashflow of smallest companies the hardest. 

“Research from the British Chambers of Commerce shows that three quarters of firms have, at some point, been paid late, with more than a quarter of those saying that this had an impact on their operations. "

The announcement comes on the back of a ten-year industrial strategy launched in June, a high-level strategy which the Government says will boost grown in 8 specific sectors of the economy.

The strategy was met with a luke-warm welcome from larger businesses, with critics accusing the plan of lacking key detail in specific areas, including on more general energy support for businesses not included in the eight identified sectors.

The number of SME's has increased by around 1m since 2010, with around 20,000 small businesses registered in Shropshire.

"This is an important step forward, but it is vital to get the balance right, and we welcome plans for consultation," added Ms Ross.

“We believe the online Business Growth Service will also be a valuable signpost to support and advice for firms.  

“It will make it easier for them to connect with our team here at Shropshire Chamber, which plays a crucial role in delivering business support and creating opportunities across their communities.”