On Tuesday 19 May Business Secretary, Sajid Javid set out new measures to support entrepreneurs, including Small and Medium enterprises (SMEs) and boost job creation during his first speech as Business Secretary in Bristol - the city where he grew up above his parents’ shop.
Speaking at the Engine Shed business centre, Javid said that the Bill will help make Britain the best place in Europe to start and grow a business, and help create two million more jobs over the next five years, so that more people have the security of a regular paypacket. As part of its long-term economic plan, he also promised that the Government will cut red tape for business by at least £10 billion over the next five years.
“Small businesses are Britain’s engine room and the success of our whole economy is built on the hard work and determination of the people who run and work for them. As Business Secretary I will always back them and, in my determination to get the job done, one of my first steps will be to bring forward an Enterprise Bill that helps them to succeed and create jobs,” said Business Secretary Sajid Javid.
He further added, “As part of our long-term economic plan, we will sweep away burdensome red tape, get heavy handed regulators off firms’ backs and create a Small Business Conciliation Service to help resolve disputes.”
Another central measure in the Enterprise Bill will be the creation of a Small Business Conciliation Service to help settle disputes between small and large businesses, especially over late payment practices. Small firms are owed over £32 billion in late payments, but many of them are not aware of their rights or are reluctant to launch legal challenges. This service will build on the existing suite of measures to tackle poor payment practices. The Bill will also support businesses through the extension and simplification of Primary Authority.
At the start of 2014 there were an estimated 5.2 million small and medium businesses in the UK which employed 25.2 million people, and had a combined turnover of more than £3,500 billion, including many Asian own businesses. Small firms accounted for 99.3 per cent of all private sector businesses in the UK, 47.8 per cent of private sector employment and 33.2 per cent of private sector turnover. SMEs also employed 15.2 million people and had a combined turnover of £1.6 trillion
