ACCA hosted a fringe event at the Conservative Party Conference earlier this week on the topic of SMEs and their role in leading the recovery from recession. The meeting was very constructive and several interesting points were raised by the participants, who included MPs, think tanks and industry representatives.
Conservative MPs who attended highlighted four key issues that have been perennial problems for SMEs:
There was widespread agreement that more needs to be done to help improve the key issue of SMEs’ access to finance. It was acknowledged that banks are being reluctant to provide finance but also that they had problems of their own to cope with. Several people said that the statements being made at a national level are not being borne out at branch level, with many SMEs, especially in certain ‘blacklisted’ sectors, still unable to access finance. The conclusion was that it may be necessary for businesses and banks to become more creative on new sources of finance in the future.
There was also much debate over the issue of deregulation and regulatory reform, with Conservative attendees stressing the fact that they would end the ‘revolving door’ approach, with regular Ministerial reshuffles, calling for Ministerial consistency and for governments of whichever colour to recognise that SMEs need consistency.
ACCA chief executive Helen Brand argued that there should be a deregulatory stimulus as a means to encourage SMEs, which could in turn help increase employment. Conservative speakers were positive on the need for deregulation for SMEs but it was noted by some that deregulation can cause its own problems. Sometimes, it can mean amending regulation and dropping some parts of it, which can actually be as disruptive as bringing in new regulations, as companies have to conduct audits to ensure that they are still complying with the bits that are remaining and that they have systems in place to cope with the amended parts.
The Conservatives are committing to bringing in proper sunset clauses, and ensuring that the UK engages more quickly on key issues with the European Commission, acknowledging that, very often, the fact that the UK comes late to the debate is damaging business.
Finally, there was discussion on the help offered to SMEs by government. It was pointed out that some government advisory services are not necessarily reliable. The private sector solution, especially in terms of accountants, is usually more effective, with accountants being seen as trusted advisers by many SMEs.
The bottom line for politicians of all hues? The ‘think small first’ principle is key.
Conservative MPs who attended highlighted four key issues that have been perennial problems for SMEs:
- late payment
- problems with banks
- over-regulation, and
- skills.
There was widespread agreement that more needs to be done to help improve the key issue of SMEs’ access to finance. It was acknowledged that banks are being reluctant to provide finance but also that they had problems of their own to cope with. Several people said that the statements being made at a national level are not being borne out at branch level, with many SMEs, especially in certain ‘blacklisted’ sectors, still unable to access finance. The conclusion was that it may be necessary for businesses and banks to become more creative on new sources of finance in the future.
There was also much debate over the issue of deregulation and regulatory reform, with Conservative attendees stressing the fact that they would end the ‘revolving door’ approach, with regular Ministerial reshuffles, calling for Ministerial consistency and for governments of whichever colour to recognise that SMEs need consistency.
ACCA chief executive Helen Brand argued that there should be a deregulatory stimulus as a means to encourage SMEs, which could in turn help increase employment. Conservative speakers were positive on the need for deregulation for SMEs but it was noted by some that deregulation can cause its own problems. Sometimes, it can mean amending regulation and dropping some parts of it, which can actually be as disruptive as bringing in new regulations, as companies have to conduct audits to ensure that they are still complying with the bits that are remaining and that they have systems in place to cope with the amended parts.
The Conservatives are committing to bringing in proper sunset clauses, and ensuring that the UK engages more quickly on key issues with the European Commission, acknowledging that, very often, the fact that the UK comes late to the debate is damaging business.
Finally, there was discussion on the help offered to SMEs by government. It was pointed out that some government advisory services are not necessarily reliable. The private sector solution, especially in terms of accountants, is usually more effective, with accountants being seen as trusted advisers by many SMEs.
The bottom line for politicians of all hues? The ‘think small first’ principle is key.
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