What Is The Business Growth Service UK..

Small and micro businesses are the soul of UK high streets and communities. They are essential to the UK's economic growth, regional development and the ability to create jobs. It is estimated that the 5.5 million small businesses in the UK account for around £2.8 trillion in annual turnover and are responsible for the employment of roughly 16.6 million people [1]. They are of the utmost importance to the UK economy. This has led to the UK Secretary of State for Business and Trade launching the new 'Business Growth Service'.

What Is The Business Growth Service?

The main goal of the business growth service is to make it easier for small businesses throughout the UK to get access to the support they need to succeed in the current economic climate. According to Jonathan Reynolds (Secretary of State for Business and Trade), the service is expected to launch in the first half of 2025. Its purpose is to provide small businesses with essential resources and transform the way they receive crucial growth assistance.

Why Does This Matter To Small Businesses?

The Business Growth Service aims to provide small businesses with a centralised hub designed to make it easier to navigate and access a wide range of valuable support. Its primary goal is to remove barriers by modernising how companies find relevant resources, whether they're seeking financial assistance, expert advice, or opportunities to network with other businesses. By bringing these components together in one place, the service aims to reduce time spent on administrative tasks and empower small business owners to focus more on growth and innovation. It is estimated that small businesses currently spend around 33 hours a month on internal business admin [2], the new business growth service aims to bring this figure right down.

What Challenges Do Small Businesses Currently Face?

The current business support environment is widely recognised as fragmented and overly complex, making it difficult for small businesses to navigate and access the help they need. This often acts as a barrier to growth and innovation. Recent research indicates that just 26% of small businesses have actively sought external advice or information in the past year [2]. This data highlights a significant lack of engagement and reinforces the need for the business growth service.

In 2023, the European Commission released a report titled "Approaches for Designing SME Support Schemes." The report examined the implementation of different schemes, including the SMARTCymru programme, the Danish Social Fund, and Scale-up Denmark. Regarding SMARTCymru, the findings revealed that just 16% of Welsh businesses were aware of the programme. However, 76% expressed interest in gaining more information and potentially applying for the support. These results highlight the importance of the new business growth service being introduced.

What Does The Business Growth Service Offer?

The business growth service will introduce a digital platform that connects small businesses with local authorities and devolved governments. The service will be delivered at a local level to ensure it addresses the varied needs of small businesses throughout the UK. This national programme aims to offer coordinated support, guidance, and resources to businesses across the country. Despite underwhelming economic growth in April (UK economy shrank by 0.3%), the Government remains committed to its growth agenda and backing the UK's 5.5 million small businesses.

The business growth service aims to offer guidance in the following areas:

Business growth strategies
Leadership and management development
Access to finance
Innovation and internationalisation
Net zero sustainability

Latest Developments

The UK government has stated that the Business Growth Service remains on schedule for its launch in the first half of 2025. Ongoing discussions with businesses, industry groups, and experts are helping to shape the service so it effectively supports small businesses nationwide.

You can stay informed about business growth service updates by visiting the UK Parliament website.

What Can Small Businesses Do Now?

The UK Government currently offers help to small businesses through a variety of different schemes:

Finance & funding: Start up loans, recovery loan scheme, growth guarantee scheme, and business rates relief.
Training & Skills: Help to grow programmes, apprenticeships, and co-funded workplace training.
Mentoring & Leadership: Access to business mentors and leadership development activities.
Local Support: Free, tailored advice from growth hubs and regional business support services.

Looking For Further Information?

Hopefully this article has given you a better understanding of the upcoming business growth service and how your small business can make the most of it. For more information on topics related to small and micro businesses, feel free to explore our knowledge base. Alternatively, if you have any further questions on business services, do not hesitate to contact us.