Entrepreneurial business feels overlooked and under-supported by government

With SMEs typically contributing 50% of GDP and 60% of employment nationally, Regus has surveyed the opinions of SME owners in order to take the pulse of the entrepreneurial sector and uncover how entrepreneurs feel about the level of support their national governments and institutions are providing. 75% of business owners globally feel that the interests of sSMEs are still overlooked by government. In the UK almost 4/5 of business owners (79%) feel that their interests are neglected.

The survey canvassed the opinions of over 5,000 entrepreneurs in 78 countries asking them about their recent revenue and profit trends, along with their main concerns and causes of stress in the past years. 

74% of respondents globally, and 72% in the UK declared that banks should be forced to lend more to entrepreneurial ventures and small businesses, highlighting that access to credit is an issue for entrepreneurs. 86% of entrepreneurs globally and 87% in the UK also stated that government venture capital funds should be available to support entrepreneurs and their business initiatives. Indicating that maintaining cash flow is an issue for small businesses globally, 72% of respondents globally and 74% in the UK declared that legal penalties should be introduced for late payment of invoices.

Mark Dixon, Chief Executive of workspace solutions provider Regus, comments: “In spite of their massive importance to the national economy, the SME segment struggles to get its voice heard.   In the aftermath of the global downturn, this key sector for the economy has had difficulties securing capital and maintaining cash flow.

“In particular, UK SMEs complain of late payments which frequently cause start-up businesses to fold within the first 18 months. The latest EU directive concerning late payments authorises businesses to charge 8% interest on overdue bills and €40 to cover expenses for late bills, but carries no enforcement measures. With the latest research by Atradius reporting that 42% of UK firms are being paid late, it is not surprising to find that fines on late payments would be welcomed by the UK SME community.”