Report outlines new approach for business support
Small and medium size manufacturing companies could hold one of the keys to the UK’s economic revival, says a new report.
The document, Stimulating growth and employment in the UK economy, contends that much can be achieved by simply changing the emphasis of business support. Published by the IfM's industry-engagement arm, IfM Education and Consultancy Services (IfM-ECS), it draws on engagements with more than 500 small and medium sized businesses.
For the last decade government-funded business support has been channelled towards ‘productivity’, focusing on efficiency improvements and increased competiveness, but resulting in fewer jobs. While productivity remains important it is no longer sufficient. By changing the focus to ‘growth’, businesses can achieve an increase in financial value, which contributes to GDP. It also contributes to the growth of sustainable employment.
Peter Templeton, CEO of IfM-ECS, explained: “For the last eight years we’ve worked with hundreds of SMEs in a range of industries across the UK and abroad and we have learned a number of valuable lessons.
“Put simply, by giving SMEs appropriate tools to help them develop a coherent strategy, with a clear basis of competition, by helping them to prioritise where to focus scarce resources, and by developing capabilities we can boost their chances of swift growth.”