Read: The Purpose Coalition reminds us all of the vital role SMEs can play in boosting opportunity, says Shadow Minister Bill Esterson as he launches new report.
Shadow Minister for Business and Industry, Bill Esterson MP, has officially launched the Purpose Coalition’s latest report, Entrepreneurial Revolution, in partnership with SME for Labour.
Esterson joined former Member of Sir Keir Starmer’s Shadow Cabinet, Nick Forbes CBE, and Labour’s Candidate for Derby North, Catherine Atkinson to launch the report, attended by leading Purpose Coalition Members including Virgin Money, Travelodge and many more.
Writing in a foreword for the report, Esterson said “I very much welcome this joint report from the Purpose Coalition and SME for Labour, which reminds us all, not just of the vital role that SMEs play in our economy, but of how they play a crucial role in opening the door to opportunity, and how purpose-led enterprise will play a crucial role in our economy for years to come.”
At the start of 2022 there were 5.5 million small businesses in the UK – those with less than 50 employees - 99.2 per cent of the total business and accounting for 99.9 per cent of the business population. They account for three-fifths of the employment and around half of turnover in the UK private sector. Total employment in SMEs was 16.4 million, 61 per cent of the total, whilst turnover was estimated at £2.1 trillion, 51 per cent of the total.
Employment in small businesses was 12.9 million, 48 per cent of the total, with a turnover of £1.6 trillion, 36 per cent of the total. There are also 3.1 million sole proprietorships
The report highlights best practice from leading Coalition Members, including Sodexo, Virgin Money and Solent University, and makes four bold recommendations for how the next Labour government can put SMEs at the heart of the agenda, whilst boosting opportunity. These include:
Developing a new framework of localised support for SMEs, akin to the JobCentre.
Rethink the Enterprise Champion to the Business Secretary around SMEs
Supporting SMEs to grow
Putting a greater focus on how SMEs can boost social mobility.
Report author, Nick Forbes CBE said “Starting and running a business can open the door to opportunity, for individuals and for the country, but there needs to be a sharper focus on purpose-led enterprise and how the government can deliver the best results for the sector. The Purpose Coalition’s cross-party work provides a wealth of experience and best practice which can help offer innovative solutions.
I hope this report – and the recommendations it contains – will encourage constructive debate and positive collaboration between all parties so that SMEs can successfully fulfill their potential.”
Through their business activities, leading Purpose Coalition Members are playing a key role in boosting opportunity. Businesses such as Virgin Money, who prioritise and support start-ups through Virgin Start Up. This involves helping businesses and business owners develop, with access to online resources and events - including podcasts and masterclasses from industry experts. Whilst universities, such as Solent University in Southampton allow students to apply for grant funding of up to £3,000 through the Solent Entrepreneurs Scheme, alongside business advice from the university’s business network - including Dragon’s Den star Theo Phaphitis, who serves as university’s Chancellor.
Extending Enterprise, Purpose Goal 9, puts SMEs at the heart of the Purpose Coalition. Bringing opportunities to communities and having more opportunities on the doorstep is often discussed in terms of inward investment and getting businesses to be able to invest in places that have been social mobility coldspots. But enabling people and communities to create their own jobs is perhaps the most powerful way of really driving opportunity on the doorstep. If we can embed a social norm of entrepreneurship across our country and in communities where setting up a business is less usual then it can be a powerful lever to help talent and ideas thrive wherever they are.
The event follows a series of small business and enterprise events for the Coalition. A fortnight ago, leading Purpose Coalition Members joined Minister for Small Business and Enterprise, Kevin Hollinrake MP, for a roundtable in association with Young Enterprise, exploring how entrepreneurship can create more jobs, and support the entire economy to grow.
A full copy of the report can be found at https://www.purposewithlabour.co.uk/report.
