The government has confirmed that it will consult on the establishment of a Business Growth Service, as experts warn that improving the availability of funding for small and medium-sized businesses continues to put the brakes on economic growth.

The pledge was made by Small Business Minister Gareth Thomas MP, speaking at the launch of The Growth Agenda report. Published by Goldman Sachs, the report puts forward ideas based on the views of entrepreneurs to boost the UK’s economic prospects. 

The Business Growth Service was first announced in December as a one-stop shop for government advice and support, in a bid to streamline the government’s offer to small companies and to assist businesses seeking to raise finance. ICAEW will be responding to the consultation on the Business Growth Service, working with colleagues from across ICAEW, member firms and colleagues and members in business.

Creativity and insights of small businesses

Meanwhile, The Growth Agenda report says the UK government must draw on the creativity and insights of Britain’s ambitious small business community if it is to achieve its ambition to grow the economy. It outlines 18 interventions – practical ideas that could be implemented with government support – developed by 59 UK entrepreneurs over the past year that they believe could kick-start productivity and catalyse long-term growth. 

Proposals include a Small Business Investment Summit to bring investors together with high-growth small businesses, and an artificial intelligence (AI) leadership training course developed by leading business schools and in partnership with industry to create AI champions within small businesses to ensure the UK keeps pace with AI developments.

The report also puts forward the suggestion of a National Employability Programme to embed greater enterprise education in the curriculum, as well as activities aimed at young people, such as the Duke of Edinburgh’s Award, to foster an enterprise-ready talent pool with the skills that employers need.

The challenge of unlocking growth

Charlotte Keenan, head of the Goldman Sachs 10,000 Small Businesses UK programme, says: “Growth is the pressing national mission and unlocking it is perhaps the greatest challenge that consecutive governments have faced. It’s time for government to back the people who are growing businesses here and now. 

“The true lesson of this report is that our future economic growth is going to be built on the success of the entrepreneurs and business leaders who are building companies and creating jobs. They are full of creativity, energy and ideas that must be harnessed by government as it shapes its future growth agenda.”

Business and Trade Secretary Jonathan Reynolds says: “Small businesses are the lifeblood of the UK economy and are excellent problem-solvers that offer an invaluable perspective on the challenges we face. That is why it is so exciting to see the solutions that they have put forward in this report.

“We are committed to offering SMEs the stability, reform and investment they need to thrive. These businesses are our partners in delivering our mission for economic growth – if anyone can kick-start it, they can.”

Better business advice needed

ICAEW’s Head of Corporate Finance David Petrie participated in a round-table event following the launch of The Growth Agenda that mulled over policy initiatives, including ways to improve the availability of funding for SMEs. Other participants included British Business Bank Chief Executive and ICAEW Corporate Finance Faculty board member Louis Taylor, and Baroness Nicky Morgan.

Petrie argued that better business advice is the key to unlocking more finance for growth. At the same time, targeted fiscal incentives will be required for pension funds if they are to invest in those smaller companies where there is truly a shortage of capital. 

The Small Business Manifesto, a survey of more than 550 high-potential small businesses published by Goldman Sachs in 2024, found that 37% were unable to access the finance they need to grow. “Often that’s not because funding isn’t available, but because of flaws with their business plans. Chartered accountants play an absolutely key role in helping small businesses to get established or raise new finance for growth,” Petrie said.

10,000 Small Businesses programme

ICAEW has been a strong supporter of the Goldman Sachs 10,000 Small Businesses programme since its launch in 2011. It is a fully funded business education programme for high-potential businesses in the UK, delivered in partnership with the Enterprise Research Centre and Saïd Business School, University of Oxford. 

The 100-hour curriculum is open to the owner or senior decision-maker of an established small business (3+ years), with at least £250,000 turnover and between five and 50 employees. During the course, each small business owner works to develop a customised business growth plan to direct their business strategy and expansion. Despite significant investment and enthusiasm among those businesses supported by the initiative, to date only 2,368 small businesses have participated in the programme.