Growing pains: What is holding SMEs back? - Lincolnshire Chamber of Commerce and Industry, UK

Welcome to Growing pains: What is holding SMEs back? Building an enterprising nation, which is globally competitive is still an aspiration and is yet to become a reality for the businesses that I speak to. Barriers to growth are in fact barriers to greater competitiveness. That doesn’t mean that the strategic direction of government policy is wrong. Indeed there are many issues covered in this report, which will resonate with policymakers and are issues that they are committed to tackling: regulatory burden and skills being two examples. However, the real challenge is finding solutions, and here it is certainly not as straightforward as presuming that direct government intervention is a panacea. What we need is an enterprise framework, underpinned by a lighter regulatory system and stable tax regime, which support competent businesses allowing them to grow and flourish. This has to be a priority for government as we approach more uncertain economic conditions.

There is a recurring theme in this research. The ability to manage growth within firms must be better. Management as a professional skill is both undervalued and underinvested in. Many ‘barriers to growth’ identified in this report are problems that can be eased through intelligent and innovative management of resources and people.

As Director General of the British Chambers of Commerce, I speak to businesses of all sizes and at every stage of development. Whether they are a start-up in Bolton or a high growth small business in Bedford, they not only face a range of external barriers, but also choices to be made on the road to becoming the successful and profitable enterprises that they all want to be and the economy needs. Helping businesses to navigate these choices and make the right ones is where Chambers of Commerce can really add value by linking entrepreneurs together in order to share expertise not just locally, regionally or even nationally, but worldwide through the ‘Ultimate Business Network’.

David Frost
Director General
British Chambers of Commerce

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