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CHAMPIONING THE SMALL BUSINESS SECTOR

According to the Guardian today, the UK Government is to develop a "brutally honest" review of strategies designed to encourage new start-ups.

Led by the former Secretary of State for Trade and Industry, Lord Young of Graffham, the review will aim to:

- minimise the "bureaucratic burdens" which increase costs and hassle
- identify ways that government departments can help ensure firms have access to sufficient finance
- encourage people to start businesses rather than seek jobs as employee
- improve the way government listens to the views of small and medium-sized enterprises when designing policy

The focus on small businesses as drivers for the UK economy is in stark contrast to the Welsh Assembly Government’s focus on large anchor companies to drive forward the Welsh economy, a strategy that the First Minister Carwyn Jones emphasised time and time again when running for the leadership of the Welsh Labour Party and one which was fully adopted by Ieuan Wyn Jones for his Economic Renewal Programme.

However, as will be discussed on this blog tomorrow, WAG's own statistics show that it is the small firm sector that has created the majority of jobs in Wales during the last few years in Wales and should be the focus of government policy in revitalising the Welsh economy.

It is just a shame that WAG, which abolished the groundbreaking Entrepreneurship Action Plan for Wales, has not seen fit to do the same as the UK Government and have instead have opted for a strategy that focuses on the part of the economy that is not creating jobs at a time when we need them the most.

Comments

Iestyn said…
Another advantage of the small start up that the Assembly appears to have missed is that, generally, a small company will be based where the entrepreneur is, rather than where the most logical position for the company is by strictly business criteria. So whereas a large company will tend to set up where other large companies are situated, the start-up will often be in places where jobs are desperately needed.
November 01, 2010 7:17 pm
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