Small Business Bill Receives Significant Backing

95 Per Cent Of SMES Support The Introduction Of The Small Business Bill


Fergal Dowling, Partner | +44 (0)121 214 5476

The government's proposals to introduce the Small Business Bill have received significant support from small and medium-sized enterprises (SMEs), with 95 per cent "emphatically backing" the plans, according to a recent poll.

Private equity firm Key Capital Partners carried out a survey involving 100 UK-based SMEs to find out what they thought of the Bill, discovering that 80 per cent feel that bringing it in will help to improve their access to business funding.

The government first announced its intention for such a Bill in June this year, with one of its main purposes being to make it easier for SMEs to secure financial support from lenders, rather than from banks.

In addition, the Small Business Bill is set to bring in changes to the way in which late payments from SMEs are dealt with, with 60 per cent of poll respondents stating they believed this would be addressed in enough detail in the legislation, suggesting the government is on-track with its proposals.

The Bill will reportedly also lead to the creation of registers at Companies House detailing the person with the most control over each UK business.

Business secretary Vince Cable has previously said the Bill is designed to help hard-working people, as, for example, self-made entrepreneurs running small enterprises will be able to benefit from it.

However, it is believed that the Bill will not cost the government any more than around £300,000 per year to get up and running, but will see businesses pay £500 million towards it in its first year, with this then decreasing to an annual sum in the region of £80 million.

Peter Armitage of Key Capital Partners commented: "SMEs have often struggled with accessing the finance necessary to maximise growth and up to this point they have received little in the way of assistance from the government.

"However, our results show that the measures in the Small Business Bill are a step in the right direction."

Expert Opinion
A huge weight of expectation has been placed on SMEs, with both the Government and many business commentators expecting them to play a key role in the continued improvements being seen in the economy.

"However, in order to do this, such small businesses obviously need to have access to the right support and tools to ensure that they can succeed with their ambitions and plans for growth.

"The Small Business Bill has been designed to provide support in this regard and it is welcome that SMEs are clearly heartened by the measures included within the legislation. It is vital that, following the introduction of these laws, more is done to ensure SMEs continue to benefit from support."
Fergal Dowling, Partner