Five things we told MPs small businesses need ahead of the new Small Business Strategy

With the government's new Small Business Strategy expected to launch this week, we thought we'd share the evidence we submitted to the House of Commons Business and Trade Committee's inquiry into the key challenges the small business community is facing right now.

This is the first government-led strategy of its kind in over a decade. It's a big moment and we wanted to make sure Parliament hears your voice.

Our submission focused on five major issues that founders consistently raise with us, through the Enterprise Nation platform, at events and during focus groups. Here's what we said.

1. Engagement with small businesses must get better

Traditional government consultations – long documents, complex questions, closed roundtables – just don't work for busy entrepreneurs.

We called for shorter surveys, digital feedback loops and partnerships with trusted networks (like ours!) to reach underrepresented founders.

• In our focus groups with Department for Business and Trade (DBT) officials, founders said traditional consultations felt irrelevant. They preferred short surveys and accessible digital formats.

We also recommended a "small business lead" in every government department, and regional boards made up of real founders (not just officials) who could bring local challenges to the table.

2. Starting a business is still too hard

Despite the UK having a relatively easy legal process for setting up a business, the real blockers are financial and emotional. A lack of funding, a fear of failure and concern about giving up a steady income all hold people back.

• Thirty-six per cent of aspiring entrepreneurs said lack of start-up funds was their biggest barrier – rising to 40% among women.

We backed this up with evidence – like how just 8.2% of equity funding went to all-female founder teams in 2023 – and argued for targeted, practical support that reduces risk during the earliest stages of starting up.

3. Procurement reform must work for small firms

Too many founders still see public sector contracts as out of reach.

Even with the new Procurement Act 2023, old habits die hard: complex applications, risk-averse buyers and no real consequences for failing to engage small suppliers – even with the new social value measurement and targets in place.

• Despite making up over 99% of businesses in the UK, small and medium-sized enterprises (SMEs) secured just 20% of the government's total public procurement spending in both 2023 and 2024.

We used our submission to highlight Supply Connect – our forthcoming online platform that will help small businesses become "supplier ready" – and offered to work with government to close the gap between ambition and access.

4. Support and funding exists – but it's too fragmented

There are grants, loans, tax reliefs and advice out there, but most small business owners don't know where to find them.

• A British Business Bank survey found that 70% of intermediaries cite lack of awareness as the main reason SMEs don't seek finance.

We called for simpler signposting through platforms like Enterprise Nation, clearer regional pathways and awareness campaigns that meet founders where they are.

5. Tech adoption and productivity need real solutions

We showed how platforms like Tech Hub are helping founders adopt digital tools and boost productivity, and why the UK needs to scale this kind of support if we're serious about closing the tech gap.

• Sage estimates that if SMEs widely adopted digital tools, it could add £232 billion to the UK economy every year.

Our message to the committee was simple: founders need delivery. Less complexity. more clarity and support that reflects how small businesses actually operate.

We've submitted the evidence, now we'll keep pushing to make sure the strategy delivers what you need.

Want to see our full submission or share your own views? Read it now.

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