£2m government funding pot launched for SME accountancy and HR tech

The government has issued a second £2m fund to support SMEs to better use technology for accountancy and HR practices.

The Department from Business, Energy and Industrial Strategy has launched the fund to support SME activities such as invoicing, payments and credit management.

The funding is part of the of the £9m Business Basics programme, set up in 2018 to provide grants and run trials in a bid to identify most effective ways to encourage SMEs to adopt productivity-boosting technology and management practices.

So far, having already issued a previous £2m of funding, the programme has supported 26 projects in developing ideas to encourage SMEs to use technology and more efficient management practices to improve their businesses and tackle late payments.

Cambridge Judge Business School, the Bournemouth, Christchurch and Poole Council and Tenshi Consulting Ltd are just some of the 12 winners of this second competitive round of funding from BEIS. They will share the £2m to explore online networking, gaming and coaching techniques.

Small Business Minister Kelly Tolhurst said: “As a former small business owner, I know how important it is to harness technology to make your business more productive.

“This is why we’re awarding another £2m from our Business Basics Fund and backing 12 more exciting new projects to develop their innovative ideas.

“I am particularly pleased that we are making up to £1m available to target the issue of late payments, which I know can have a real negative impact on SMEs and their cash flow. I look forward to seeing the innovative ideas that this Fund competition produces.

“Research shows that boosting productivity could unlock £100bn for the economy, and helping small businesses make better use of technology will enable them to seize the opportunities of scaling up in new markets when we leave the EU.”