Local councils may be jeopardising their own local business growth according to new research that was released by the Association of Chartered Certified Accountants (ACCA). One out of every five SMEs in the UK stated that local council decisions were having a harmful effect on their business. Some of these decisions included traffic and parking restrictions, red tape around their premises, and the procurement of services and goods from out of town.
The general public has also noticed the failure of councils to think about local business first because in a survey that included about 2,000 UK consumers half reported that their councils should be doing more to help out local SMEs while another 27% stated that they think their councils are preventing the growth of SMEs.
Head of ACCA UK, Andrew Leck, stated that over the last few years the UK public has been encouraged to support businesses locally in Britain and now the same principle needs to be enforced on a local scale in order to help new SMEs succeed. He went on to explain that SMEs make up about 99% of all organisations in the UK, but their research shows that local councils cannot afford to ignore them any longer because they will flounder in this climate.
Despite the fact that SMES may not be getting the attention they need from local councils, the future still looks good for most SMEs with just four percent of SMEs believing they will need to reduce their presence in the next year. On the flip side, another 14% plan to increase locally and 10% plan to start looking into international trading.