The National Enterprise Network (NEN), the UK’s leading advocate for start-ups and micro businesses, has called on the Chancellor to acknowledge the vital contribution of small businesses in the forthcoming Autumn Statement.
The NEN is urging the government to address four key areas impacting micro and small businesses (MSBs), which together form the foundation of the UK economy. As of early 2024, the UK had approximately 5.5 million private sector businesses, of which 5.45 million employed 0–49 people, representing 99.2% of all UK businesses.
These enterprises are vital engines of employment, innovation, and local prosperity. Yet their success depends on a strong network of local enterprise agencies, business hubs, and support organisations—many of which are members of the National Enterprise Network (NEN).
This support infrastructure now faces increasing pressure from short-term funding cycles, capacity constraints, rising operational costs, and the demands of digital and environmental transition. Without intervention, the stability of the business support ecosystem—and the early-stage businesses it nurtures—will be at risk.
The NEN submission to the Chancellor outlines key recommendations across four priority areas designed to strengthen both the MSB base and the enterprise support network that underpins it.
1. Enabling MSBs to Grow and Thrive
• Introduce a Small Business Growth Allowance to incentivise reinvestment of profits into key growth activities such as digital adoption, upskilling, and capital investment.
• Expand Local Enterprise Grants for early-stage MSBs, with a focus on underserved and rural communities.
• Establish a Business Resilience Fund to help firms adapt to energy, technology, and climate-related pressures.
• Simplify access to government schemes by reducing administrative complexity for loans, grants, and training initiatives.
• Extend Business Rates Relief for the smallest firms operating in high-cost areas.
Safeguarding Shared and Managed Workspaces
Shared, managed, and co-working spaces — many operated by not-for-profit organisations, social enterprises, and local authorities — represent the first rung of the enterprise ladder. They provide low-risk, flexible environments for individuals and early-stage businesses taking their first steps into self-employment.
However, current business rates treatment of shared and managed workspaces threatens the sustainability of this vital community infrastructure. Escalating costs risk undermining the viability of not-for-profit and community workspace providers, many of whom already operate at break-even or, in some cases, at a loss to maintain affordable, inclusive access for local entrepreneurs.
Without reform, the UK risks losing affordable, community-based workspace that provides access, mentoring, collaboration, and a stepping stone into the wider business economy. These spaces are not just premises — they are economic incubators, enabling self-employment, job creation, and local regeneration.
• A review of business rates policy for shared, managed, and co-working spaces, with explicit recognition of the not-for-profit and community benefit model many operators deliver.
• Introduction of a Business Rates Relief Scheme for Managed and Not-for-Profit Workspaces, ensuring parity with other enterprise-support and educational facilities.
• Incentives for local authorities to maintain and expand community-based workspace provision in partnership with enterprise agencies, charities, and social enterprises.
Support the Supporters: Create a Support Infrastructure Stability Fund, providing multi-year contracts to enterprise agencies and business hubs to ensure continuity and capability within the support network.
2. Improving Access to Finance and Investment
• Extend the Enterprise Finance Guarantee (EFG) to include smaller loans (under £50,000) and widen eligibility across more sectors.
• Introduce a Micro-Investor Tax Relief Scheme to encourage local investment into MSBs.
• Enhance awareness and accessibility of Community Development Finance Institutions (CDFIs) and alternative finance options.
• Encourage proportionate lending criteria from mainstream banks for sole traders and microbusinesses.
• Launch a Digital Finance Support Programme to help MSBs adopt modern tools for payments, invoicing, and cashflow management.
• Support the Supporters: Fund a Business Support Investment Readiness Programme, delivered through NEN member agencies, to equip MSBs for finance and investment while strengthening local advisory networks.
3. Strengthening Skills, Enterprise Ecosystems and Support Providers
• Fund Enterprise Skills Bootcamps (five-week intensive programmes) for MSB owners and their teams through NEN partners.
• Expand access to flexible apprenticeships and modular training tailored to small business needs.
• Incentivise collaboration between local authorities, enterprise agencies, and business networks to develop shared co-working, learning, and innovation spaces.
• Introduce Digital Skills Vouchers enabling MSBs to access accredited training in e-commerce, AI, and digital marketing.
• Target support for underrepresented entrepreneurs, including women, ethnic minorities, ex-offenders, and refugees.
• Support the Supporters: Establish a Capacity-Building Grant Fund to help enterprise support organisations invest in digital infrastructure, data systems, and impact measurement tools.
4. Accelerating the Energy and Net Zero Transition
• Create a Small Business Energy Transition Fund to help firms invest in energy efficiency, renewable technologies, and sustainable practices.
• Provide temporary energy cost relief for microbusinesses in energy-intensive or high-cost sectors.
• Offer dedicated advisory support through local enterprise agencies to guide MSBs on net zero compliance, sustainability strategies, and grant access.
• Support the Supporters: Allocate targeted funding for enterprise support agencies to deliver Net Zero Readiness Advisory Services, helping small firms decarbonise and remain competitive.
Alex Till, Chair of the National Enterprise Network commented, “ Micro and small businesses are the engine of the UK economy, but their success depends on the ecosystem that supports them. Enterprise agencies, business hubs, and not-for-profit managed workspaces are critical community anchors, helping individuals take their first steps into entrepreneurship.
Yet without action—particularly around business rates reform for shared workspaces and sustainable funding for enterprise support infrastructure—the UK risks losing a generation of early-stage entrepreneurs and the local networks that sustain them.
By adopting these recommendations and supporting both MSBs and the supporters who enable their growth, the Government can secure a more inclusive, innovative, and resilient economic future for the UK.”
