It is no surprise that small and medium enterprises are often left behind when it comes to investments. But what better way to boost efficiency and bring about a thriving economy than to invest in one of Britain’s most lucrative sectors? Now, the government is pumping £2 million to test innovative ways on how to make SMEs more productive than ever before.
Up to £1 million will be given to businesses enabling them to use technology and simplify invoicing, payment and credit management, ensuring they work as effectively as possible which comes as part of the government’s plans to end the culture of late payments.
The funding comes from the £9 million Business Basics programme set up in 2018, which enables businesses to cultivate efficient management practises in accountancy and HR management using technology. The scheme now backs 26 projects in running trials and developing ideas, encouraging SMEs to increase their productivity as a whole.
The Department for Business, Energy and Industrial Strategy has run two competitive rounds under the Business Basics Fund to award companies a chance to receive funding, receiving over 300 bids from a wide range of public, private and third sector organisations.
On Friday, 12 SMEs in the online networking, gaming and innovative coaching techniques sector were awarded a share of the £2million pot in the second round of competitions.
These include Cambridge Judge Business School; the Bournemouth, Christchurch and Poole Council; Northumbria University; and Tenshi Consulting Ltd
“As a former small business owner, I know how important it is to harness technology to make your business more productive. This is why we’re awarding another £2million from our Business Basics Fund and backing 12 more exciting new projects to develop their innovative ideas,” Small Business Minister Kelly Tolhurst said.
“I am particularly pleased that we are making up to £1million available to target the issue of late payments, which I know can have a real negative impact on SMEs and their cash flow. I look forward to seeing the innovative ideas that this Fund competition produces.
“Research shows that boosting productivity could unlock £100billion for the economy, and helping small businesses make better use of technology will enable them to seize the opportunities of scaling up in new markets when we leave the EU.”
With a rise in technology, it is essential SMEs upgrade and keep up with the times, allowing them to becoming more efficient and productive in the long run.