Six straightforward things small businesses want to see in the government’s Small Business Strategy

The government is getting ready to unveil its Small Business Strategy – a national plan to help small firms increase their productivity and grow.

Enterprise Nation has played an active role in shaping this strategy, drawing on feedback from our members and insights from our focus group with senior officials at the Department for Business and Trade (DBT). It’s expected later this month, but no guarantees there. 

What should Small Business Strategy include? 

•  Finance: Making it easier to access funding. We’re developing a free platform to bring together grants, SEIS, CDFIs and other finance options in one place

• Markets: Helping businesses win more work, particularly through public procurement. In September, we’re launching Supply Connect with JP Morgan to help small firms become supply-ready and connect with buyers

• Business capabilities: Supporting skills and digital adoption. We’ve delivered over 35,000 hours of Help to Grow: Management mentoring and continue to help thousands of founders through our Tech Hub programme

• Wider environment: Creating the conditions for long-term growth, including reforms to skills and apprenticeships. At our recent Talent Hub roundtable, we explored how to better connect young people to enterprise opportunities

• High streets: Reviving local economies through business rates reform, tackling anti-social behaviour and regenerating empty properties. Our Powering the High Street initiative with energy supplier EDF offers free business support and smart energy advice to high street firms

Why should we care?

With costs rising and profit margins shrinking, small firms need a much clearer say in the way the government supports businesses because one size does not fit all. The Department for Business and Trade’s new Small Business Strategy is a timely opportunity to reset.  

Our top asks 

1. Treat enterprise like a core skill, not an add-on 

We’re pleased to see a renewed focus on entrepreneurship, but it must start early. Enterprise should be taught like maths, a basic life skill.

Every young person should leave school understanding what it means to earn, build and trade. That requires embedding enterprise education across the curriculum, with real input from founders. 

Despite strong entrepreneurial ambition among young people – our own research found 62% of 18-24 year-olds said they wanted to start a business, but only 16%  actually did. This ‘entrepreneurial gap’ highlights a failure to equip the next generation with the skills and confidence to succeed. 

2. Make finance access simple and targeted

Rising costs and complex schemes make it harder, not easier, for founders to find the support they need compared to other countries. The overall proportion of smaller businesses successfully securing external finance has seen a notable decline, falling from 50% in Q3 of 2023 to 43% in Q2 of 2024, where it subsequently remained steady for the rest of the year. 

We’re building a platform to simplify access to grants, loans and funding. But the government should go further – expand Making Tax Digital to the smallest firms and introduce targeted reliefs for investment in productivity tools and digital services. 

3. Support small firms to trade and supply 

Helping small businesses win contracts and reach new markets is the right goal, but it needs delivery behind it. Only 20% of direct public procurement spend went to SMEs in 2024 – a figure unchanged since 2019. That must change. 

This autumn we’re launching Supply Connect with JP Morgan to get SMEs fit to supply and matched to contracts. We also want to see the Tradeshow Access Programme reinstated and upgraded, so more founders can promote their products internationally. 

4. Build a national plan for digital adoption 

Our Tech Hub has helped over 49,000 firms adopt digital tools, but 69% of small businesses say the cost of licences and subscriptions is the biggest barrier. The UK needs a joined-up strategy on digital and AI readiness, combining training, diagnostics and access to trusted advice. Owners want action, not more white papers. There’s a small window of opportunity and we must not miss it. 

5. Back employer-led solutions on skills and hiring

Only 33% of small business owners feel confident about hiring. Talent Hub is our platform to help them do it well. Over 13,000 firms supported, backed by the private sector and ready to scale. The model works. The government should get behind it. 

6. Prioritise the nationwide adoption of eInvoicing to boost small business productivity 

The UK is falling behind OECD peers on eInvoicing. Sage research shows SMEs are paid seven days faster using eInvoicing and could save up to 36 days per month on manual invoicing tasks. A phased rollout of mandatory B2B eInvoicing would drive tech adoption and unlock growth. This could successfully encourage technology adoption while allowing businesses time to prepare.  

This strategy is a chance to back the people taking risks, creating jobs and driving innovation. Let’s make it count. 

Stay tuned – we’ll bring you the latest on the strategy and what you need to know when it’s published. 

Relevant resources

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

• Adviser Paul Grant on funding, focus and the future for UK small businesses