The Federation of Small Businesses (FSB) has called for increased support, both practical and financial, for Scotland’s smallest companies.
With such support, it is claimed by the FSB, the enterprises could contribute greatly to employment in the country.
As it stands, these so called micro-businesses, employing 10 employees or fewer, account for 94 per cent of all of Scotland’s business. However, the FSB says that with the right guidance, they could recruit more and have a far more widespread contribution to the economy.
In its ‘Micros Untapped’ report, the FSB states that present job creation initiatives do not work for smaller firms. It called on Holyrood to introduce a fund to aid recruitment and HR activities.
The lobby group’s Scottish policy convener, Andy Willox said:
“The potential and sheer number of micro businesses in Scotland means that better support to help them unleash their potential could make a serious dent in the unemployment figures.”
The Scottish government responded to the call by saying that everything that could be done to help smaller business is already in progress. Citing the Small Business Bonus Scheme, it claimed that Scotland is the “most supportive” place in the UK for doing business.
Other help for micro-businesses is coming from angel investors and factoring companies in Scotland too, helping firms large and small to take opportunities as they become available.
The FSB report, conducted earlier this year in association with economy consultants Rocket Science, analysed the experiences of over 650 companies in Scotland. It also took the vantage from focus groups in compiling the results.