SMEs Small Medium Enterprises

SMEs Small Medium Enterprises - checkSURE Comment - 8th August 2003

SMEs, small medium enterprises, are the backbone of Britain. Forget the big multinationals, conglomerates and global giant enterprises that stride the world desperately trying to create organisations that 'design out' the imperfections that characterise the human condition. No, small medium enterprises (SMEs) are the things that will both (i) adapt more quickly to the shifting demographics (lower birth rates, higher migration) that are changing Britain forever; and (ii) ultimately provide the wealth that will be needed to finance an increase in the number of non-earning senior citizens over the next 40 years.

If checkSURE is doing its bit in bringing advanced credit check technology to the courageous individuals who run these small medium enterprises (SMEs), we can justifiable ask: What's the Government doing to help? Are they acting as a radiator or a drain on the energy of UK entrepreneurs?

Well, the short answer is that the UK Government hasn't really got a clue about how to nurture this vitally important segment of our economy - the small medium enterprises (SMEs) sector. For example, today's Financial Times reports even more depressing news. Under the headline "Small business to resist more paid holidays", it says: "Small businesses are set to resist government pressure for longer minimum holidays, in an effort to defeat attempts to scrap Britain's opt-out from European limits on working hours. Patricia Hewitt, trade and industry secretary is considering whether Britain will need to table counter-proposals when the European Commission reviews the European Union's working time directive this autumn."

The fact that Ms Hewitt even has to 'consider' doing this shows how out of touch her Department is with the things that matter to small medium enterprises (SMEs). According to the FT, Ms Hewitt, who is also an advocate of improving work-life balance in Britain where employees work longer hours than anywhere else in Europe, believes 'companies' may need to 'compromise'. This may be OK for the Big Boys but what about the rest of us? Just what does she think small medium enterprises (SMEs) are?

Isn't it self evident that by allowing these extra burdens to be placed on small businesses the Government is going to destroy the engine that supports the livelihoods of millions of people? The owners and operators of small businesses are just the type of people that the government should pay homage to. Few are covered by any safety net other than that offered by their own energy and intellect. For most owners of small medium enterprises (SMEs) the 'work-life balance' is paying the wages of those they employ before they take money for themselves. When the government has both increased the costs of employees and restricted the flexibility that they can bring to making small businesses successful, who do they think will pick up the tab?

The answer, of course, is the owners and operators themselves - not the employees that these regulations are supposed to protect. This means that the work-life balance of UK entrepreneurs will be adversely affected (huh, as if they could be any worse!) and fewer people will be employed in the small medium enterprises (SMEs) sector. Now where's the logic in that?

To be successful for Britain, Ms Hewitt needs only one banner message hanging over her desk. It will read: "Thank goodness for small medium enterprises (SMEs)!"

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