Government should invest in smaller businesses

Government investment into small and medium-sized enterprises (SMEs) should be "absolutely crucial", one expert has claimed.

Sahar Hashemi, business author and founder of Coffee Republic, said: "I think our future is with them, let's not forget that SMEs contribute around 41 per cent to our national income.

"We should never forget their contribution and how important they are in their role into the recovery of our economy."

Despite this, according to the latest Markit/CIPS UK Manufacturing purchasing managers' index (PMI), the growth of new exports has reached its highest ever levels.

In April, the Manufacturing PMI rose to a fifteen-and-a-half year peak.

But the Confederation of British Industry said that while the demand for goods by small manufacturers is improving, access to credit can prevent them from having the returns they could have.

To cut costs, small business owners might want to consider avoiding solicitor fees and writing employment contracts and legal forms independently.

Written by Christopher Evans

Published on: May 11, 2010

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