This policy briefing examines how government could unlock the growth potential of the UK’s small firms.
- The UK is an increasingly hospitable environment in which to start a new firm, and many entrepreneurs are availing themselves of this opportunity
- Yet the UK has produced no 'gorillas' - innovative new firms that grow rapidly into world-leaders, such as Microsoft and Google
- UK contract enforcement is relatively poor, damaging vital business relationships. And a culture of amateurism still prevails in attitudes to management
- Recommendations to government include transforming its procurement policies to give more support to innovative small businesses and simplifying the inheritance tax system
The UK’s highly favourable regulatory framework, well-developed capital markets and world-class science base are all preconditions for success in many important and emergent sectors of the economy.
But many innovative small and medium-sized firms are unable to achieve their growth potential. This policy briefing looks at the reasons for this, and ways of ensuring firms are operating in the best environment for achieving high growth rates.