Partner Article

Small firms under-represented in business groups

Business groups need to adapt to meet the needs of an ever-changing business landscape in Britain.

Small and micro businesses are not effectively voicing their concerns to the Government and three quarters are not part of any professional or trade body, because they do not see the benefits of joining business groups.

A survey carried out by Enterprise Nation across 1,200 companies found that only 9% were part of the British Chamber of Commerce or the Federation of Small Businesses.

64% of respondents said they found membership bodies too expensive, while 40% did not see the benefits of such an organisation and 18% thought their type of business was not represented in these groups.

One major complaint was a lack of pragmatism amongst business groups, and many respondents criticised traditional bodies for lagging behind the evolving business landscape.

A respondent to the survey commented: “I was a member of a business group but the value did not seem that good versus the cost and time, and the groups didn’t align well with me.

“Many were focused on a small geographic area and traditional, old fashioned, business methods and practices.”

Small business expert and founder of Enterprise Nation, Emma Jones, said: “The start-up culture in Britain has been dramatically transformed. Technology has lead to the rapid democratisation of opportunity and record numbers of people starting a business.

“And yet for a sector that employs more than 13 million people and generates £500bn for the British economy, its needs are under-represented to Government.

“Around 97% of businesses are classed as ‘small’ in the UK. Last year more than 484,000 people started a business. These businesses are starting from home, embracing technology, and going global at speed.

“They are independent individuals emerging in the modern economy as a significant economic and social force.

“They need a new kind of representation that offers commercial benefit, enhanced profile and a place to air their views.”

This was posted in Bdaily's Members' News section by Miranda Dobson .