The government’s Industrial Strategy highlighted that although the UK is home to some of the world’s most productive businesses, a ‘long tail’ of underperforming businesses affects the nation’s overall productivity output. It is these businesses that are targeted in the government’s review, for if a large number of SMEs can each make incremental productivity gains, the effect could be enormously positive on the UK economy.

The UK has a majority micro and small business economy; there were 5.7 million businesses in the UK in 2017, 5.5 million of which were micro businesses employing 0-9 people. Large corporations with hundreds or thousands of staff tend to grab the headlines and become the focus of news stories about productivity, but it is the 5.5 million businesses operating out of the spotlight that hold the most keys to unlocking growth for UK plc.

Growth isn't for every business, but every business has the potential to grow if the desire is there, the conditions are right, support services are accessed, and technology is utilised to its fullest. Within the 5.5 million micro businesses will be many with untapped potential for growth, and the upcoming review will focus on three key areas that the government feels can greatly impact a business’s productivity; leadership and management training, adopting new technologies and innovations, and accessing business support services.

Leadership skills

The government has seen reason to act on improving management skills after citing studies in its Industrial Strategy that “suggest that the average UK manager is less proficient than many overseas competitors, while management skills could account for a quarter of the productivity gap between the UK and the US”.

Utilising technology

From e-commerce and cyber security to cloud computing and CRM software, technology has rapidly changed the face of business. Those that do not learn how to, if not master, at least understand how to utilise technology available to them will likely miss out in one way or another, whether it is through loss of sales or efficiency or the risks involved from being hacked.

Business support

Buckinghamshire Business First knows first-hand the value of business support, whether it is face-to-face advice, grant funding or networking and promotional opportunities, for example.

Have your say

Buckinghamshire Business First is involved in the consultation around the Business Productivity Review, keen to ensure the government understands the needs and hears the collective voice of Buckinghamshire's businesses.

If you have a view on what the government can do to help improve the productivity of UK SMEs, email Philippa@bbf.uk.com with your thoughts.