The government of any country plays a vital role in supporting the mushrooming businesses. It is the duty of the government to provide an enabling business environment, security and other necessities to businesses for them to grow to big companies. How does the UK government help business? The UK government, like other governments, is doing much to ensure the existing and the mushrooming business survives to their goals. In this article, I will present you with the various actions that the UK government has taken to help businesses and entrepreneurs achieve their investment dreams.
The government is committed to providing loans and grants to small businesses to help them grow to big companies. For instance, the government has set a scheme with the Bank of England to allow banks and other financial institutions to borrow at cheaper interest rates so that they can in turn lend to the SMEs at low and affordable rates. Also, the government is setting up an independent British bank, business bank, to unite all the private and public sector funds, as an attempt to create more effective finance market for both upcoming and smaller businesses in the UK. As a way of encouraging private investors, the government is providing funding in various categories such as startup loans, business angel co-investment fund, SMEs loans, and business finance partnership among others.
Engaging the young people in business
The government has taken initiatives to engage the young people in business as early as at school level. The government has been recruiting young entrepreneurs and sending them to schools to sell the idea and the importance of owning a business to students. Actions are taken to support every school in the UK to start a school business. The government is supporting the teachers to start and develop a school-based business as a way of motivating learners. The better part of this action is that the government is giving students loans to start student enterprises.
Encourage entrepreneurship in specific areas in the UK
The government has introduced a 24 enterprise zone across England. These zones are provided with special incentives to make them attractive and suitable places for doing business. The different government departments are working closely to ensure there is a development of enterprise zones in different parts of the country.
Tax incentives for various levels and categories of business.
The government is offering a range of tax incentives to encourage investors and young businesses to invest in both small and medium sized business. For instance, the new Seed Enterprise Investment Scheme (SEIS) is meant to encourage people to start a business or invest in small businesses to boost their growth. The action helps the mushrooming companies raise equity finance from the individual investors and other big companies who buy shares from them.
Business advice and Mentorship
The government has started a national website portal, mentorsme, where business people and young entrepreneurs can find mentors to help them with business advice and ideas to start, run and manage their businesses. The website unites supporters and mentors in one place where young entrepreneurs can access their services easily. It connects all the small business and the mentoring bodies all over the UK to support and guide them to realize their goals.
Business growth services
This is a service from the Department for Business Funded Services. It comes with a wide range of expertise to ensure that businesses get better advice and the right support to improve and grow. The service package includes among others building networks, accessing finance, exporting, developing ideas, leadership and management skills and many more.
More information about the actions taken by the UK government to support businesses can be found in this website; https://www.gov.uk/government/publications/2010-to-2015-government-policy-business-enterprise/2010-to-2015-government-policy-business-enterprise