Amanda Anderson
Head of Operations, Place & Small Business, Business in the Community
Business collaboration is vital to creating a fairer and greener world, which is why it is so important for larger businesses to support SMEs with the resources and guidance they need to play their part in building a better world to live and work in. The majority of businesses in the UK are SMEs, employing three-fifths of the workforce.1 With data showing that the number of firms going bust in the UK in 2023 is set to be the highest it has been since 2009,2 larger businesses should consider what support they can offer.
With over half of SME owners having experienced poor mental health in the past year,3 it is more important than ever that larger businesses consider SME owners when creating their community wellbeing response. Almost half of SME owners say financial worries are the main reason for their poor mental health,4 with over half of SMEs reporting late payments in 2022.5 That’s why it is essential that larger businesses ensure they are paying their suppliers on time.6
Nine in 10 SMEs recognise the importance
of sustainability, yet only four in 10 have
set targets to reach net zero.
Larger businesses should also support SMEs with upskilling, providing free and accessible mentoring and essential skills training, so everyone has access to the skills they need. In 2021, it was reported that 17% of SMEs lacked basic digital skills and 20% lacked the advanced digital skills needed to operate.7 That’s why Business in the Community worked with NatWest Group to provide free masterclasses to SME owners in Bradford, Coventry, and Rochdale, giving them the skills needed to grow their businesses. Larger businesses can help to address the digital skills gap amongst SMEs by connecting SMEs within their networks so they can learn from each other.8
Larger businesses should also review the diversity of their supply chains and the opportunities presented to SMEs in local communities, to help those most disadvantaged. This can be done by engaging in communities, holding ‘meet the buyer’ events, understanding challenges SMEs face, and ensuring procurement processes are clear and transparent.
Supporting SMEs with climate action is essential. Nine in 10 SMEs recognise the importance of sustainability, yet only four in 10 have set targets to reach net zero.9 To encourage greener practice amongst SMEs, larger businesses should support them in their transition to net zero so no one gets left behind.10 Larger businesses should make sure to work out where SMEs are on their climate journeys and tailor support accordingly so that all SMEs can get to where they need to be.
[1] UK Small Business Statistics | FSB, The Federation of Small Businesses
[2] Commentary – Company Insolvency Statistics July to September 2023 – GOV.UK (www.gov.uk)
[3] Over half of small business owners have experienced poor mental health over the past 12 months (simplybusiness.co.uk)
[4] Small business owners experiencing poor mental health (simplybusiness.co.uk)
[5] Time is Money: Late payments ‘stifle’ small businesses, report shows | FSB, The Federation of Small Businesses
[6] Business in the Community: Supporting SMEs with health and wellbeing
[7] Addressing the digital skills shortage in Britain’s SMEs – IT Supply Chain
[8] Business in the Community: Supporting SMEs with digital skills
[9] Where are SMEs on their journeys to Net Zero? – Lloyds Banking Group plc
[10] Business in the Community: Supporting SMEs with positive climate action