Member Article

The Small Business Commissioner: 12 months on

One year ago, the office of Business, Innovation and Skills shook from the top down as Vince Cable was replaced by Sajid Javid in the all-Conservative party win. Javid inherited a department determined to improve the lives of small and medium-sized enterprises, with some key initiatives set in place for any future successor to complete and uphold. However, this was a bed of foundations and more was needed to establish and implement any significant changes. One year on, what has been done to support the country’s SMEs? And what should be the next steps?

Powerful and powerless

The scale and stretch of the influence that supermarkets in the UK have had on the Government, businesses and consumers is vast. However, it has long been clear that the power they have enjoyed in the relationship with suppliers is unfair and unsustainable. In a bid to rebalance the scales, the Enterprise Bill was introduced and Sajid Javid has now successfully qualified its contents as Law. Without doubt, this has so far been one of the headline highlights of Javid’s reign.

However, this took time and, despite businesses continuing their valiant attempts at refuting the conditions imposed by corporate giants, success has been limited. Due to take the helm of this David and Goliath battle is the Small Business Commissioner, a position created as part of the Act. However, the public is still waiting to see the list of candidates under consideration for the role, let alone the final appointment. It should be a matter of urgency for Sajid Javid to identify and appoint a suitable candidate for this position who can represent the lifeblood of the UK economy without crumbling under the pressure and influence of some of this country’s largest businesses.

Diversifying the routes to success

With David Cameron at his side, Sajid Javid has vouched for the rights of individuals who are not exploring further education by university or college and has instead championed genuine and valuable apprenticeships. Consequently, small businesses are now viewing apprentices as a respected resource that is equal to the broader workforce.

However, Sajid Javid will need to keep a watchful eye as businesses adopt this scheme alongside the newly enforced National Living Wage, which is putting an increased strain on payroll in several organisations. Many SMEs are already struggling with the financial burden of this change. As such, support in this area needs to be ongoing, with the Business Secretary keeping an ear to the ground on the true impact these changes are having.

Out of reach?

SMEs have long struggled with accessing finance, unaware of the options beyond mainstream lending. Whilst the business and alternative finance community is doing everything to encourage more education on this matter, the Department for Business, Innovation and Skills has struggled with raising awareness of its own funding initiatives and grants. Last year, the Government’s voucher scheme designed to help businesses seek financial and technical advice was vastly undersubscribed, due to the huge lack of awareness about the scheme.

An uphill adventure

The Government has worked incessantly to encourage and incentivise people in to work or education, and a key player in executing this is Sajid Javid. However, the business community is watching eagerly to see how Westminster policies are making a difference on the ground. With uncertainties facing many businesses in the current climate, having sustainable business initiatives and laws is essential to the long term success of SMEs. Javid has so far taken this responsibility in his stride, embracing the huge adventure ahead – now it is just a question of delivering on all his promises.

This was posted in Bdaily's Members' News section by Tracy Ewen .