I am reliably informed that there are about 4.8m SMEs in the UK. If a half of these were ready willing and able to take on just one employee each, then the UK’s recession would end pretty damned quick once the accelerator effect of all those salaries hit the high street.
One of the main reasons this isn’t happening in sufficient volume is that SME Managing Director/Owners are so terrified by the complexity of employment law coupled with profound worry about what you can and can’t now ask in an interview, employee rights which they can ill-afford and the difficulty of getting rid of the incompetent staff. Thus, they don’t bother to recruit in the numbers needed to end the recession. For the Government to say that the private sector is recruiting successfully (as it appears to be in the light of recent unemployment statistics) simply hides how much more it could do if unfettered from the constraints which have helped drive us from fourth place in the economic league table to eighth or ninth.
The Government appears to be very aware of this yet fails to act for fear of upsetting that arch oxymoron, the intelligent left. The chancellor’s tax take is down on expectations and he is now faced with having to introduce more public spending cuts. (He could start by closing the Health and Safety Executive.) The other lot can only harp on about Keynes (John Maynard as opposed to Milton, I expect) although history tells us that state-controlled intervention just does not work. The upshot of this is that we have a leadership vacuum comprising austerity without hope or commercial direction.
Memo to Dave…You can’t make an omelette without breaking eggs. For goodness sake, man, do something!!! And do something to support those who actually voted for you for it is largely they who will create the wealth and jobs to get UK PLC out of the hole into which politicians coupled with bankers and their regulators have almost inextricably placed us all.
And, Dave, when you actually do something, please ensure that there is a measurable achievement at the end of it. Everyone is sick of those who confuse activity with achievement, especially politicians…Oh, and close down BIS. One could be forgiven for thinking that it knows nothing about business, is incapable of innovating and its staff have few if any skills relevant to SME business in today’s Britain. It is a department of Government totally geared to provide British business with every assistance possible – apart from actual help.