Small Business Matters

Is anybody out there? Why getting feedback is important (and a little request for your feedback!)

Feedback is important for your product or service but it’s easy to get so swept up in the day-to-day business of working that you don’t find the time to ask whether you’re actually giving people what they want.

If you don’t ask for feedback you’re unlikely to make the best improvements quickly and you might only hear about the bad things when people make a complaint – by which time it’s often too late. In addition, people are more likely to speak up when they want to complain, and quite understandably so. By soliciting feedback directly you’ll find out what you’re doing right so you can keep on doing it or even do it better.

You can get feedback in all sorts of ways, such as surveys, focus groups and social media monitoring and at Intuit we’re doing a bit of that ourselves just now through Zuberance. 

Bridging the funding gap for small businesses

With the availability of finance still a big issue for many small businesses, the government is launching another initiative to help them not only access the funds they need during these challenging times but to grow as well. Following the Small Firms Loan Guarantee Scheme and the Enterprise Finance Guarantee Scheme, the Department for Business Enterprise and Regulatory Reform (BERR) will be conducting a review to consider whether there is a role for government in facilitating public and private investment to help small businesses access capital to grow. The review, which will consult businesses, investors and government before reporting to Business Secretary Peter Mandelson ahead of this year’s Pre-Budget report, follows government promises to stimulate growth using private sector resources and expertise to bridge the funding gap. The idea is that where conventional bank finance may not match a business’ risk profile and growth aspirations, the government will leverage private sector monies to provide this growth finance and risk capital, and ensure high-growth businesses that will be very important for the economy are able to secure the capital they need going forward.

 

VAT reduction - success or failure?

Love it or hate it, Alistair Darling’s notorious VAT cut has provoked a global response from businesses of all sizes. This measure that was designed to boost economic activity was initially described as a nightmare for small businesses, and has recently been hailed as a success by the CEBR. The group reports that the temporary cut has resulted in a £2.1 billion increase in retail turnover.

However, in a recent Intuit survey, 56% of small business owners stated that none of the measures in the Pre-Budget Report had benefitted them. In the long term there may be benefits to the VAT reduction, however, in the short term it has been painful for businesses to implement the changes. For this reason, the small business budget wish list included an extension of the VAT reduction, and the chancellor must carefully consider this if small businesses are to gain the long term benefits of their short term hardship. 

Small businesses lack faith in upcoming Budget getting them through recession

In a recent survey that we conducted of our small business customers[1], a quarter of respondents said they fear that their business will go under if the economy doesn’t turn around in the next year.  This could have a devastating effect on Britain, as small businesses play such an integral role in the economy, employing an estimated 13.5 million people.[2]