A number of groups have called on the Government to set up a Small Business Administration (SBA), similar to the US model in a bid to form a long-term strategy to help small firms.
According to the Federation of Small Businesses (FSB), the Government should look at whether an institution built along the principles of the US SBA is needed, which would bring together business support, export guidance, public procurement, and other small business functions into one place and provide a “powerful small business voice” within Government.
Meanwhile the shadow Business Secretary, Chuka Umunna, said that a future Labour government would create an SBA to support small firms in their dealings with government departments.
His remarks, also delivered at the FSB conference, echoed the recommendations of Andrew Adonis, who this week published a Policy Network paper calling for Government to improve its commercial relationship with small businesses.
In the paper, Lord Adonis argues that a new UK SBA should promote state contracting with smaller firms and points out that the US and Germany, two of the UK’s strongest competitors, are far ahead of the UK in the extent to which they use Government procurement and R&D to scale-up successful small firms.
These ideas have been taken up by various bodies representing sole traders and small firms, with a spokesperson for the PCG, the trade body for freelance workers, saying that the creation of a UKSBA is potentially huge for small businesses because it would ensure that they continue to be championed across government.
However, they warned that it must follow the US system to have real political teeth, reporting at Cabinet level and ensuring things such as government contracts are more accessible to small businesses.