Ideas shared by Enterprise Nation members for the government's new small business strategy

Enterprise Nation recently brought together small business owners and senior officials from the Department for Business and Trade to discuss the government's upcoming new small business strategy, and have a general conversation about small business sentiment in the UK.

The meeting was part of Enterprise Nation's small business policy focus group, a regular meeting of founders from a diverse range of backgrounds and sectors. They share their thoughts and experiences on key small business issues to help inform our policy discussions with government.

The government's small business strategy

To set the scene, the government officials outlined what the small business strategy is focused on.

At the heart of the strategy lies a commitment to revitalising the UK's high streets. The small business minister has made this a cornerstone priority, responding to widespread concerns from local MPs about the challenges their constituents face. From crushing business rates to the persistent spectre of crime and anti-social behaviour, the strategy aims to amplify the voices of SMEs in shaping their local commercial landscapes.

The thorny issue of access to finance is another crucial pillar. Officials acknowledged the complex relationship between SMEs and major banks, particularly regarding personal guarantees and business lending. Officials said they they recognised that entrepreneurs from diverse and underrepresented backgrounds face unique hurdles in accessing capital. The persistent challenge of late payments, which can strangle small business cashflow, is also a priority concern.

Market access, both domestic and international, is the third strategic focus. A particularly compelling discussion centred on the extensive process of public sector procurement. Many businesses shared their frustrating experiences with complex bidding procedures and insufficient feedback. The strategy aims to democratise these opportunities, making government contracts more accessible to smaller enterprises.

The officials acknowledged operational challenges, emphasising the need to enhance business capabilities. Digital adoption is a key theme of the strategy, with efforts to help business owners embrace technology to streamline their operations and boost efficiency. This dovetailed with discussions about leadership development, including the Help to Grow Management programme.

Perhaps most encouragingly, there was frank acknowledgement of the wider business environment's impact. From regulatory burden to soaring energy costs, from local infrastructure challenges to tax policy, officials said the strategy seeks to address these fundamental issues while crafting a more positive narrative around entrepreneurship.

The officials confirmed the government's previously announced plans for a new business growth service to integrate the support ecosystem and offering small business owners clear, immediate access to the advice they need. This represents a significant step towards streamlining government support services.

As the small business strategy continues to take shape, with publication planned for later this year, officials are keen to engage in deeper conversations with stakeholders. This collaborative approach suggests a genuine commitment to crafting policy that reflects the real-world needs of Britain's small business community. Enterprise Nation will continue to communicate the views of our members to government, and provide connections for founders to share their direct feedback.

Small business owners' input: Making business support more accessible

Multiple neurodivergent business owners highlighted the overwhelming nature of current support systems. "Websites are far too wordy and it takes entrepreneurs a very long time to read and understand them," one founder explained.

Another, running a brewing company, specifically called out HMRC and other government bodies' reliance on telephone communication, suggesting that automated services via email or chatbot would be "exceedingly helpful."

The Cumbria Growth Hub was praised as an exemplar, with calls for similar localised support networks nationwide. The message was clear: "speak to us in a basic way, it doesn't need to be complicated. As founders you are learning as you go and teach yourself as you go."

Access to finance and funding

The grant landscape drew particular criticism. One participant described a "cottage industry" around grant-writing, making funding inaccessible to those who can't afford professional bid writers.

A UK manufacturer highlighted the challenges of sustaining domestic production without previously available EU grants like ESIF and UK manufacturing grants, noting significantly higher costs compared to overseas production.

Several participants reported frustration with high street banks, despite being able to demonstrate profitability, noting that banks' insistence on personal guarantees created significant barriers. There were strong calls for a centralised database of funding options, including grants, loans and Enterprise Investment Scheme (EIS) opportunities, to make navigation easier for time-pressed entrepreneurs.

International trade support

While government export advisers received praise, comparisons with private sector support highlighted room for improvement. Santander's Navigator programme was cited as superior, offering direct connections with overseas contacts rather than just embassy email introductions.

A participant with experience of previous UK Trade and Investment roadshows to Hong Kong and Singapore called for similar initiatives to be revived, particularly for the US market, noting a five-year wait for meaningful US trade support. Post-Brexit concerns were evident, with one creative business owner admitting they had become "too scared to export" and now only operated domestically.

The small business environment

Recent policy changes drew strong criticism. One founder reported that "4-5,000 millionaires left in 2024," creating a £6 billion tax gap. Another described a "real brain drain" of young, digitally-capable talent to markets like Dubai and Singapore, calling the scale "staggering."

The Autumn Budget's impact on employment costs was highlighted as particularly challenging for small businesses. Property costs were cited as a major barrier for young entrepreneurs, with one participant noting that many potential business owners are deterred by inability to afford business premises.

Support gaps and practical needs

Founders highlighted several critical gaps:

• Lack of support for neurodivergent business owners, despite their significant presence in the entrepreneurial community

• Female founders struggling to implement competitive maternity policies in early-stage businesses

• Sole traders often excluded from mainstream support programmes like Help to Grow

• Creative businesses facing unique funding challenges

• Time-poor business owners unable to access available training due to family and business commitments

Procurement and market access

Public sector procurement emerged as a significant frustration. One business owner described attempting to secure NHS contracts as "near impossible" with prohibitive administrative costs, noting it was easier to supply US healthcare companies than UK ones. This highlighted a broader concern about the accessibility of public sector contracts for small businesses.

Several constructive ideas emerged:

• Transform initial HMRC and Companies House communications to include positive messaging and support signposting, similar to the government's business support portal created during the COVID-19 pandemic that pointed to public and private sources of support

• Create a central, simplified database of funding options covering grants, loans, and EIS opportunities

• Develop more inclusive support programmes that consider sole traders and self-employed individuals

• Reform small businesses' access to public sector procurement, particularly NHS contracts

The sentiment was captured perfectly by one participant who noted: "We could just work for someone else, and our lives would probably be easier, but we are all trying to make a difference and should be recognised for that."

The focus group made clear that while the entrepreneurial spirit remains strong, practical barriers and support gaps are holding back the growth potential of UK small businesses.