The small business community in the UK generates over 50% of national turnover and employs 13.7 million people in the UK, making it the backbone of the British economy. As a result the influence of the small businesses community is being recognised by political parties, who have begun to ramp up and outline their promises to support UK enterprise ahead of the general election.
But what do shop keepers, tradesmen, farmers, freelancers and home based businesses want? To give small businesses a place to voice their concerns and needs, Intuit has launched the Small Business Britain campaign. It is based on research Intuit undertook with YouGov, who spoke to over a thousand small business owners around the country to find out what they consider the key factors to help them succeed in what can only be described as a crucial time for the UK economy.
Having surveyed small businesses up and down the country there are some key areas where they have said they would like to see some change.
From the government:
1. The rate increase for Corporation Tax to be postponed - Almost a third of small business owners called for further Corporation Tax deferment. The 1p rise was due to hit 800,000 small businesses in 2010 but it was called off in late 2009 by Alistair Darling. Further deferment will help create a strong economic platform upon which they can grow and employ new staff.
2. The National Insurance contribution rate to be less - About 40% of UK small businesses felt that a reduction in employers' national insurance contribution would benefit their business the most. This is the number one wish of small business owners, as the amount of tax they have to pay is in imminent danger of stifling the potential growth and success.
From the banks:
3. Bank of England interest rate cuts to be passed on - Around 35% of small business owners wanted interest cuts to be passed on in full to business users. Any individual bank that commits to this policy change would receive Small Business Britain's gratitude and, potentially, custom. However, what is really needed is for the banking industry to sign up en masse.
4. Better rates for small business owners - 45% of small business customers wish that the banks would offer better rates. Small businesses' demand for new loans is currently around £600 million a month and there is still a feeling that SMEs need more support from banks.
5. Better customer service - 36% of small businesses feel that banks should provide better customer service. Not only should the customer service be more personal, but the small business customer needs to be able to understand what support their bank is prepared to give.
6. Increased flexibility - Small business support needs differ from those of retail customers. They would be grateful of more transparency, increased communication and a cap on overdraft and loan fees from banks, all of which would aid the task of managing financial issues.
From the small business community:
7. Customer service - Small businesses have the advantage of being able to provide a personal touch in a way that major companies cannot. While 84% of small business owners in the UK consider good customer service to be a key contributor to their success, small businesses wish to go that extra mile and make the difference for the customer.
8. Helpful web resources for customers - With 39% of small business owners rating that having a web presence is important for securing new customers, small businesses wish to provide a website that is useful to the customer. A website that is easily accessible contains all the necessary information and is easy to use.
9. A better cash flow system - Cash remains king and is one of the single most important factors for a small business to remain up and running. With 85% of small businesses believing it is important to keep accounts up to date they wish to forward plan, agree to realistic deadlines with suppliers and keep accounts up to date.
10. A great working environment - 40% of small business have put measures in place to support employees. They wish for their employees to be happy, to be able to offer them flexible working hours, and for employees to gain from training and support they need to succeed in a thriving business environment.
Small Business Britain has some clear needs and is looking for support from the government the banks and the business community en masse. In order for small businesses to continue to contribute as they have to the British economy they need to be acknowledged, listened to and supported in their endeavours.
For more information and to join the discussion, please visit www.smallbusinessbritain.co.uk
