No

Alex Pratt, director, founder of the SME seriousreaders.com

Like many directors, I spend a lot of time scanning the pages of Director and other business magazines, trying to keep abreast of events. With apologies to Orange, the future is not at all bright. And recent government actions have not made things better for those running small firms. The cost of borrowing has soared—even after base-rate falls—and the availability of funds has plummeted.

Meanwhile, the government keeps reminding us that we have the most robust economy in Europe. So how come County Court Judgements are up 500 per cent, liquidations are up, the jobless count has turned and our exchange rate against the Euro has hit an all time low?

While the government likes to tell us how thankful we should be that the economy is under prudent stewardship, it borrowed £2.7bn at the last minute to overcome the 10 per cent tax-rate fiasco, and is spending 45 per cent of GDP, up from 37 per cent 10 years ago. And how do we balance this economic largesse? By discouraging wealth creation, of course.

The inspired attack on non-domiciled workers has already reduced our wealth-generating capacity, as important companies have moved to Ireland and high-net-worth wealth creators have upped sticks for Switzerland.

Raising the small companies' tax rate was a perverse attack on SMEs, making us all less keen to get up early and work our butts off. And the 80 per cent increase in capital gains tax on entrepreneurs is sure to send some innovation investment overseas, ensuring we miss out on the exploitation of our great ideas long into the future.

To top it all, the continual denigration of work remains a constant policy thrust for this government. Work, it appears, is the dark side of a balanced life. It is against the law to work more than 48 hours a week, or to work for less than the minimum wage, now nearing £6 an hour.

Apparently work is the cause of all societal ills, including unruly children. The ultimate aims appears to be the eradication of work. I guess it's one way to achieve the ultimate low-carbon economy.

Yes

David Dinsdale, director of businesslink.gov.uk

I came to Business Link after running small businesses in the technology sector for 17 years. When times were tough I would look for support and assistance, having read that company X had just secured significant funding from the government. So I can see why government support is seen as the answer when the times get challenging. Working with government for the last two years has helped me understand how the government perceives its role. It sees itself as creating an environment in which businesses can flourish. Specific support is given only in areas where there is a need that would not otherwise be filled by the private sector.  

In 2006, an independent study found that the value of the total time saved by users of businesslink.gov.uk was £61m. The amount saved in other ways, such as through being able to comply with regulations more easily, was £94m.

The report also indicated that additional sales of £195m, increased profits of £31m and cost reductions of £7m, were achieved by users of the service. The report indicated that businesslink.gov.uk has been very helpful, or crucial, for 39 per cent of new businesses. In total, these businesses expect to have first-year sales of £1.3bn and profits of £186m. Satisfaction levels with the service are also extremely high.

Furthermore, while it is easy to make claims that the government isn't offering enough business support, repeated surveys have shown that UK businesses are simply not big users of this type of support. Only about a quarter of businesses seek government help and advice in any one year.
So, when considering the question of business support, it is important to be clear what the role of government should be. Government will intervene only where it perceives a need is not being addressed in any other way. The success or failure of an individual business is the responsibility of the entrepreneur. The biggest challenge is not to increase what support is available, but to persuade businesses to use what already exists.

Business Link services can be accessed via businesslink.gov.uk or by calling the National Help Line on 0845 600 9006.