Budget over: What now for small businesses?

The 2013 budget is over and done, and now the analysis and discussion begins.  But what were the key points for business, and where do we go from here?  Two key things for small business were the Employment Allowance and the announcement of £3billion infrastructure spending.  The Chancellor’s measures have been broadly welcomed by business organisations – how can small businesses take advantage of new opportunities?

Infrastructure investment and small business

One of the first things we heard from some small businesses was ‘the £3bn isn’t going to help me’.  £3bn?  Capital projects?  A small business may not see the relevance.  But we can all benefit!  The £3bn will not be spent with one company.  When a large project is awarded, the winner will need supplies, and the direct suppliers will need our services – websites, professional presentation, stationery, accounting services, virtual assistants to pick up higher volumes of work.  They will employ people to deliver the job, and may need additional HR services – and of course businesses selling direct to consumers have customers with money in their pockets.

Everyone can be part of the supply chain.  Don’t be afraid to network with the big guns.  See what events are staged surrounding large projects – meet the buyers, supply chain networking and so on.  The people attending those events will need your services, or may know someone further down the supply chain who does.  Raise your profile in the right places, and take a slice of this investment.

Employment Allowance

The announcement of a £2,000 discount on employer national insurance is a real boost for business.  It takes away one of the disincentives to employ staff – 13.8% contributions add up, and can make a big hole in the bottom line.  The disappointment is that this discount doesn’t kick in until April 2014 – a year away.  Many small firms – including this one – may think again about employing new staff in the run up to April next year.  It’s defnitely going to help business, but there’s no immediate momentum generated to boost the economic growth the country needs.

For more detailed analysis, see this collection of articles from ITV who once again canvassed the opinions of a wide range of consumers and business owners.  Ben Chapman also spoke to James Ramsbotham of the North East Chamber of Commerce and Kate Baucherel of Galia Digital (Ben Chapman’s report here).