Sadly, the Budget had little reference to SMEs. Maybe it’s not a surprise that there’s less emphasis on SMEs compared to 2012. And it wasn’t just Parliament talking less about SMEs but also the online buzz. Social media analysis tools revealed that whilst the Budget was a hot topic of conversation, little to no reference was made to small businesses with ‘SME’ failing to show in the top 100 terms. This is somewhat disappointing as SMEs in particular, often with lack of funding and resource, can easily fall behind and face closure if the necessary support is not provided by the Government.
However, SMEs were not totally forgotten and it is a relief to see that the Chancellor has recognised their importance to economic growth. By creating a new employment allowance that will reduce companies’ National Insurance bills by £2,000 per employee, as many as 450,000 small businesses will pay no jobs tax at all. Freeing up even the smallest amount of financial resource can go a long way in allowing SMEs to take the steps towards achieving growth. With the added support through the SME growth vouchers programme in England, this will help SMEs even further to overcoming the barriers to growth.
That said, the way that SMEs choose to invest to achieve flexibility and growth is also crucial – they need to ensure that they spend wisely in key areas which will have maximum impact on their business. For example, facilitating more innovative ways of working, establishing processes to manage money and cash flow effectively, investing in the technology which can give the most accurate overview of a business to allow strategic decision making and finally, adopting a leadership and management style best suited to current working challenges. The Government can only go so far in helping SMEs to succeed; it is the business owners themselves that have to take the initiative to invest wisely. Only then will they become as competitive as possible and drive long term success through sustainable growth.
John Antunes, Director SME & Channels, SAP UKI
For information on SAP solutions for SME customers visit www.sap.com/uk/sme