Barriers to growth for SME’s identified in a new report by the British Chambers of Commerce

Ahead of the expected publication this week of the Enterprise White Paper, the British Chambers of Commerce has produced a new report that identifies the challenges facing Small and Medium sized businesses as they seek to grow and expand.

Growing pains: What is holding SME’s back? looks at the barriers to growth that many owners face at different stages of their business' life cycle and identifies how they can be supported to enable their companies to grow.

Amongst the areas covered in the report are:

• Management confidence.  Over a series of focus groups it became clear that many small business owners are focussed on business survival.  Whilst they have the drive and ambition to set up the business they do not have the confidence to recruit new members of staff in areas such as sales and marketing, which would enable their business to grow.
  
  
• Risk and debt management.  Many SME’s over the first three years of the business are reluctant to take on any levels of debt, large or small, instead relying on investment from family and friends.  There is a lack of knowledge about the schemes that are around such as the Small Firms Loan Guarantee that enable firms to borrow on terms that are not standard.
  
  
• Employment law.  The administrative burden that accompanies employment is daunting.  The increasing flow of responsibilities for employers and the constant change in existing regulatory requirements are a real hindrance on growth. 

It is clear that a number of the barriers to growth can be overcome by the ability of owners to manage the associated challenges that arrive when a thriving business seeks to expand.  Many of the problems identified in the report are problems that can be eased through intelligent and innovative management of resources and people.

David Frost, Director General of the British Chambers of Commerce, said:

“Not enough businesses are bridging the gap between being small and medium-sized. The publication of the enterprise white paper is imminent and our members will be looking for some reassurance that the government has not lost its focus on enterprise and is committed to supporting ambitious, growing firms. It is a precondition for future economic success that the right conditions for growth are in place and this report identifies the barriers that growing companies face.

“It is clear that a major impediment to expansion is the management capacity within firms to handle rapid growth.  Managing so many conflicting priorities day-to-day whilst making the right strategic decisions tests many owner-managers and was recognised by the participants in our research as a major constraint on their business. Government needs to work with organisations like Chambers of Commerce to find innovative solutions to a serious problem”.

Click here to download a copy of the Report in PDF format>>

Ends

Media Contact:

Nick Dines
Tel: 020 7654 5812
Email: n.dines@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.