SMEs deserve a stronger voice

This article reflects the views of Luxus Managing Director, Peter Atterby, drawing on more than 40 years of experience in polymer compounding, recycling and sustainable materials.

Small and medium-sized enterprises (SMEs) have long been described as the backbone of the UK economy. We innovate, solve problems, create jobs, invest in local communities and provide the agility required to keep industries moving forward in this exceptionally challenging trading environment.

Yet, despite repeated promises of policies that are focused on encouraging economic growth, many business owners are asking themselves a simple question: Does it actually feel like we're being encouraged to grow? From my perspective, it certainly doesn't.

Successive governments have spoken about the importance of supporting enterprise, increasing productivity and creating wealth. However, far too many of the policies introduced in recent years have added complexity and regulatory burden, increased costs and created additional barriers for businesses that are trying to invest, recruit and expand.

SMEs deserve a stronger voice

When it comes to the importance of SMEs to the UK economy, we need look no further than the data. Collectively, SMEs generate around £2.8 trillion in annual turnover and employ 16.9 million people, accounting for approximately 60% of private sector employment.

SME owners have been at the sharp end of a volatile business climate for several years now, but we know that it isn't just our sector that has been impacted.

When business confidence declines, investment slows. When investment slows, growth stagnates. Ultimately, that affects everyone through reduced productivity, fewer opportunities and increasing pressure on public finances.

Time to simplify, not complicate

Having spent many years in business, I cannot remember another period where so many owners have felt this level of uncertainty about the future of UK enterprise.

When I speak about the need to simplify, I don't mean a reactive push towards the removal of standards or the abdication of responsibility. Regulation has, and always will have, an important role to play, but there is a difference between sensible regulation and unnecessary complexity.

A more consistent and joined-up approach to taxation and business policy would allow entrepreneurs to spend less time navigating bureaucracy and more time doing what they do best: innovating, creating jobs, developing products and building the businesses of tomorrow.

Learning from other sectors

One thing that has shone out clearly to me, is just how effectively other industries have made their voices heard in comparison to our own. I'm not sure whether this is due to a lack of organisation in terms of representation, competing priorities or the lack of a unified message, but perhaps it's time that we come together to consider the issue in more detail. 

Farmers, many of whom are SME owners themselves, have been highly vocal and demonstrative in highlighting the challenges they face. Whether or not everyone agrees with their collective agenda, their concerns have undoubtedly become part of the national conversation.

Some manufacturing businesses face similar pressures, yet we often continue working away quietly, under increasing pressure, without taking any coordinated steps towards placing the challenges that are impeding our investment and growth into the spotlight. 

A constructive conversation

Speaking out should never be about complaining just for the sake of it. It should be about contributing practical insights and experience to help shape policies that genuinely support economic growth.

The plastics and manufacturing sectors have an enormous amount to offer the UK economy. We are problem solvers, creatives, innovators and experts in technologies that keep supply chains moving. This expertise should help inform future policy, because the people building businesses are often best placed to understand what enables them to grow. 

To me, the message is clear and it is imperative that we act upon it. If we want a stronger, more competitive economy, then government and business must work together.

SME owners have valuable insights to share. Perhaps it's time more of us took the decisive step to stop speaking with each other, and to join the national conversation.