More integrated approach to business support needed for small businesses

A sharp rise in the number of small and growing businesses is placing increased demand on business support services in the South Midlands and a more integrated approach is needed to help these fast-changing companies bring lasting value to the local economy, according to PricewaterhouseCoopers LLP.

According to a report published by the Department of Business Enterprise and Regulatory Reform (BERR), the number of small businesses in the UK has risen by almost 1 million since 1994, providing work for an extra 1.5 million people. In the past year alone, the total number of businesses operating in the UK rose by 2.9 per cent to almost 4.5 million – the highest level since records began in 1994. About 99 percent of these businesses employ 25 people or less.

The rapid increase in the number of small businesses comes at a time when the Government is proposing to cut the number of business support schemes from more than 3,000, to under 100 in a bid to make business support services easier to access. The consultation period for these proposals closes in mid September.

In the South Midlands, PricewaterhouseCoopers is aware of growing demand for professional services among small and medium-sized businesses, many of which, despite their size and relative newness, are already operating successfully in fast-changing global markets.

Farah Baksh, business development at PricewaterhouseCoopers LLP in the Midlands, comments:

“An increasing number of small and medium-sized businesses in the South Midlands are coming to us with strong businesses that are already trading successfully nationally and internationally, but they may lack vital management systems, leaving them vulnerable to unnecessary risk.

“The disparate nature of traditional business support services is not helping these companies to spot what may be missing and management teams are in danger of just carrying on regardless.”

Commenting on the need for more holistic business support and advice, Andy Groves, senior partner at PricewaterhouseCoopers LLP in the South Midlands, says:

“A more integrated approach to business support is needed to help small and medium-sized companies develop in a sustainable way. This may start with tactical business support – with advice about leasing offices or raising finance to make a capital investment - but it should also involve a comprehensive audit of business strategy and management systems.

“Forming this kind of support partnership gives small and ambitious companies access to valuable resource that can be tapped into in the same way as a larger listed company might use its non-executive director.”

Contact details
Email: Andy Groves
Tel: +44 (0)1908 353109