The importance of SMEs to the UK economy is linked to their part in bringing advantages to the economy. One of the importance includes their contribution to the UK economy in reducing unemployment. In a briefing paper by Rhodes (2015) and published by the House of Commons, it is disclosed that the business type in the UK is dominated by 5.4 million SMEs, which provided the enormous portion of over 99% against the total. Yet, as mentioned, their domination is not an idle number in the statistic. In 2012, a findings reported that around 367 000 people was no longer unemployed due to the SMEs each year (Urwin & Bu...
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.... Moreover, it was then discussed the challenges that are faced by SMEs to develop themselves in the UK. It was identified that SMEs were facing difficulties to obtain finance for growth. Furthermore, SMEs also considered taxation alongside the health and safety regulation to be another barring element.
Finally, government policies and their implications were examined. There are three policies studied, tax policy from the government that requires a specific amount of tax to be paid, health and safety regulation that demands employers to ensure minimisation of risk exposed to employees and even non-employees and a policy that allows SMEs to obtain alternative financial aid source after being declined by the bank they are going to. In brief conclusion for this discussion, the government seems to be providing mutualism; benefits to the SMEs, public and the government.
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