The role large companies can play in assisting small and growing businesses is in the spotlight again, as the new government announces its plans for the Business Link Network.
LATE PAYMENT VIEWS
Members of the Institute of Directors support government plans for a statutory right to interest on late payment of debts, with 69% of the 2,000 respondents to a survey expressing support. However only two thirds of those thought that it would actually solve the problem; some thought it might legitimise late payment while others prefer faster and cheaper court action. The survey, published on October 27, formed the basis of the IoD response to a government consultation exercise.
In its response to the consultation, the Certified Accountants Association also called for a broader package of measures and urged attention to better financial management in small firms. The government’s advisory panel of 12 members from business organisations met for the first time on October 9 to consider better payment practice and discuss options.
Meanwhile a survey of 86,000 companies’ payment performance by Dun & Bradstreet, the business information service, has found that only 10% of large firms pay within terms, while 86% pay between one and 29 days late. Another survey, conducted by commercial debt collectors, Graydon Cashflow Management, has found that most firms already including a right to interest do not enforce it and only 2% of firms have adopted the British Standard for Prompt Payment, BS7809. Contact IoD on 0171 839 1233, ACCA on xx or DTI Enquiries on 0171 215 5000
ENHANCED BUSINESS LINKS
The small firms minister, Barbara Roche MP, has set out the new government’s plans for the Business Link network of enterprise support services. A booklet entitled Enhanced Business Links: a vision for the 21st century, was issued on October 7. Measures include:
professional standards of competence for BL staff;
greater small firm representation on boards;
creation of centres of excellence, with one BL providing specialist services to others;
national performance league tables.
A national advertising campaign began in November and December to encourage small firms to seek help from BLs. Contact DTI Enquiries on 0171 215 5000
LACK OF CONNECTION
The CBI in Wales has criticised Business Connect, the business support service for the Principality. Unlike Business Link, it only offers a sign-posting service to other agencies using a single telephone number. A survey of companies found more than one in three businesses (35%) unaware of its existence and nine in ten (89%) saying it had not improved access. The CBI wants a single management unit, monitoring of quality standards and the introduction of business mentoring and other measures to assist small firms. Contact CBI Wales on 01222 232536
ENTERPRISING USE OF IT
The Department of Trade and Industry is promising British business speedy access to information through a new Web site, the Enterprise Zone. With links to some 70 carefully assessed sites, the aim is to provide information relevant to companies in their different stages of development, along with answers to frequently asked questions. Developed by Microsoft, it was launched on November 4 and can be found at www.enterprisezone.org.uk
Government efforts to use IT to help small firms were extended in November, with two new Web sites: www.open.gov.uk/gdirect to provide over 600 items of information on business regulation; and www/dti.gov.uk/export.control to access details on exports. Contact DTI Enquiries on 0171 215 5000
SAFETY WEEK
Large companies were asked to support a new Good Neighbour Scheme during European Safety and Health Week in October. Modelled on a successful Irish initiative, the aim is to share expertise with smaller firms, opening up internal training courses, offering advice from safety managers and conducting joint emergency exercises. Large companies can benefit from better trained local suppliers, cost savings, improved local relations and involved staff. Contact the Health and Safety Executive on xx
Comment
In opposition, Barbara Roche promised an “enhanced” Business Link service to help support the small firms sector. Her programme, with fully 18 separate action points, is meant to redeem that pledge. But the new government has not proposed any fundamental changes to the structure, understandably reluctant to take a knife to the network so early on. This leaves TECs, enterprise agencies, local authorities and chambers of commerce to improve their coordination – if they choose to.
David Grayson is right to call for large companies to get involved (see back page). The need is for Business Link board members to focus outwards onto their real customers, small and growing businesses. Too often, these private sector led boards actually focus more onto their paymasters, the TECs and the government, and on fighting turf wars with other agencies – exactly the sort of not-for-profit petty politics which business people so deplore.
The role large companies can play in assisting small and growing businesses is in the spotlight again, as the new government announces its plans for the Business Link Network.
p>In opposition, Barbara Roche promised an “enhanced” Business Link service to help support the small firms sector. Her programme, with fully 18 separate action points, is meant to redeem that pledge. But the new government has not proposed any fundamental changes to the structure, understandably reluctant to take a knife to the network so early on. This leaves TECs, enterprise agencies, local authorities and chambers of commerce to improve their coordination – if they choose to.
David Grayson is right to call for large companies to get involved (see back page). The need is for Business Link board members to focus outwards onto their real customers, small and growing businesses. Too often, these private sector led boards actually focus more onto their paymasters, the TECs and the government, and on fighting turf wars with other agencies – exactly the sort of not-for-profit petty politics which business people so deplore.
COMMENTS