How the Small Business Act will help your Business

On March 26^th of this year (2015) the Government announced that The Small Business Act is now officially law.

With over 5 million small businesses in the UK, the law is designed to drive growth in the UK economy, and help encourage those looking to start-up.

But very little has actually been documented in the world of business. Perhaps it’s simply not news worthy enough that for once the Government are giving a helping hand to the little companies rather than the big ones.

In truth the act is there to create a fair playing field for all businesses, and ensure that the opportunities are equal for everyone.

So what is it really going to mean for you and your business?

Transparent Finance

Finance is a fickle thing in business and even starting up can be an uphill struggle that never seems to end.

But with the implementation of the act there will be much easier access to the finance options available, and you will now have more control over the payments.

Where previously it was difficult to find investors, banks are now focused on getting you the right finance option that will support the business and create a financial process that is appropriate for the business.

What’s more the government have encouraged ‘challenger banks’, which lays the way for greater sharing of information so that you have a full list of options available.

And it’s not just here in the UK that the focus lies. There will also be an increase in access to export finance so that businesses can look to expand outside of the UK, and become world leaders in their sector.

So if you’re feeling limited by your finance options it’s time to get talking to your accountant about how you can make the most of the new funds available to you.

Government Support

Despite being one of the biggest employers of the UK, small businesses have often been mistreated by the Government with only 10% of their contracts going to small companies.

But this is all changing, as within the Small Business Legislation, the Government have promised to start sharing out these projects more equally. Paving the way for small businesses to grow and take advantage of the opportunities that the Government can provide.

Better Protection

Many larger cooperate companies have been protected by the Government from red tape for too long, but this will no longer be the case.

Strengthening the rules to how companies are penalised for bad practice, the law is there to add protection for those that are playing by the book.

So if you have any concerns about how you do business, I’d polish up on employee rights such as these, and ensure that there’s no hidden concerns in your accounts.

Of course this could all change come the General election, but it’s safe to say that you should do your research to ensure your business benefits.