UK is one of the nations in the world that advances in the technology and knows for innovation. In the UK number of firms is shut down every year, which comes in the category of small and medium size enterprise. Government of the UK is providing support to the SME through varied programs by providing expert advice, arranging finance and technological equipments. Even though the Government is providing varied technical and non technical assistance to the firms then also these firms failed in the business. Entrepreneurs are mainly facing a funding problem and due to bureaucracy, they did not get required support in terms of finance from the Government. Such kind of things creates a lot of hurdles in the growth of the SME’s in the UK. All these issues are discussed in below given sections.
SME contribute a lot to the UK economy and every year number of new companies is registered and many firms shut down their business due to the availability of fewer resources. In the present research study, steps that UK Government takes to support firms are explained in detail (Wright, and et.al., 2015). Problems that entrepreneurs faced in the UK in terms of finance and resources are also explained in the report. At the end, conclusion section is prepared.
Government for past few years recognized the importance of the SME and due to this reason it formulates varied schemes to support SME in the UK. However, still there are a number of startups that failed in the UK market. As per statistics, every year in the UK totaled 6, 60,000 companies are registered. This means that every hour 70 new business are registered in the UK. 60% of these businesses got failed in three years. 20% firms shut down in just within 12 months (Roper, 2020). Even though the Government is providing enough support to the business firms, then also they failed in the UK market then it means that there is a lack of support of Government side to the startup or entrepreneurs.
According to Blackburn, 2016 there is a Design council in the UK which do enterprising charity. The aim of this organization is to stimulate growth of the SME through effective use of design and innovation. Mentioned institute is running a Design Leadership Program under which coaching and mentoring service are given to the SME’s. Design associates run an entire program in the UK and they identify the needs of the business and assist firms to develop final design project.
On the basis of the above discussion, it is concluded that the UK Government is running varied programs in the UK to support SME’s. However, entrepreneurs are consistently facing funding problem in the UK and from Government institutions and banks, they receive no or less finance or has to mortgage home. Such kind of things impedes growth of SME in the UK.
Books and Journals
Blackburn, R. A. 2016. Government, SMEs and entrepreneurship development: Policy, practice and challenges. Routledge.
Brouthers, K. D., Nakos, G.. and Dimitratos, P. 2015. SME entrepreneurial orientation, international performance, and the moderating role of strategic alliances. Entrepreneurship theory and practice. 39(5). 1161-1187.
Dimitratos, P. and et.al., 2016. SME internationalization: How does the opportunity-based international entrepreneurial culture matter?. International Business Review. 25(6). 1211-1222.
Donckels, R.. and Miettinen, A. 2019. Entrepreneurship and SME research: on its way to the next millennium. Routledge.
Ebrahimi, P.. and Mirbargkar, S. M. 2017. Green entrepreneurship and green innovation for SME development in market turbulence. Eurasian Business Review. 7(2). 203-228.
Eze, S. C. and et.al., 2018. Key success factors influencing SME managers’ information behaviour on emerging ICT (EICT) adoption decision-making in UK SMEs. The Bottom Line.
Felzensztein, C. 2016. International entrepreneurship in and from emerging economies. Journal of International Entrepreneurship. 14(1). 5-7.
Galbraith, B. and et.al., 2017. Putting policy into practice: an exploratory study of SME innovation support in a peripheral UK region. Entrepreneurship & Regional Development. 29(7-8). 668-691.
Ingirige, B.. and Wedawatta, G. 2018. An SME-driven approach to adopting measures of flood resilience: a UK-based perspective. In The Sociotechnical Constitution of Resilience (pp. 245-264). Palgrave Macmillan, Singapore.