British business organisations are calling for a tech revolution and pushing the government to supercharge economic growth.
The Federation of Small Businesses (FSB) has sounded the clarion call for the government to foster a “risk-taking” attitude and give small enterprises a leg up as they stumble over the high cost of adopting new technologies.
The FSB’s plea comes as their research has found the businesses most fuelling the economy have less access to government funding than corporate giants.
‘The Tech Tonic’ report shows 70 per cent of tech-savvy small ventures have integrated new tech innovations, generating a 15 per cent revenue rise on average for themselves.
However, they say affordability is a major barrier to innovation. For a small firm, the average cost of introducing new technology is £27,000 over three years.
Among other things, the FSB has recommended the government commit over half of direct R&D funding to SMEs and start a tax-relief scheme for businesses actively trying to amp up their products and processes.
Tina McKenzie, FSB policy chair, said “innovation must be for the many, not for the few”.
“We need a set of new policies and decisions to encourage new starters to innovate, and small businesses to take their new ideas and changes to the next level.
“To do that, there needs to be an inclusive, entrepreneur-led approach that incentivises small business owners to take risks and develop new solutions from the bottom up,” she added.
Similar calls are also echoing from the corridors of the British Chambers of Commerce (BCC).
BCC is urging politicians to spur economic growth in the UK after finding over three quarters of businesses are not increasing investments due to stubbornly high interest rates and inflationary pressures.
Better business planning, a flexible apprenticeship levy, stronger UK-EU cooperation and upgraded energy grids are “all needed urgently” according to Shevaun Haviland, director general of the BCC.
“Action on these key issues will make a dramatic difference for the tens of thousands of businesses we represent.
“British firms need action, certainty and clarity from politicians – now more than ever,” he added.
City A.M. approached the government for comment.