Written Submission from Small Firms Enterprise Development Initiative Limited (SBS0008)

Response to Business and Trade Committee Call for Evidence

Small Business Strategy Inquiry

Executive Summary

This submission identifies fragmented and inconsistent business support as the critical barrier preventing small businesses from reaching their full potential. SFEDI recommends the strategy prioritise creating a nationally coordinated, quality-assured model for enterprise support through:

• Standardised competency frameworks for business support professionals
• Professional recognition scheme with continuing development options
• National register of accredited advisers for transparency and trust
• Coordinated adviser training delivery ensuring consistent quality nationwide

This approach would eliminate the current "postcode lottery" of business support while creating measurable improvements in both adviser professionalism and small business outcomes.

About SFEDI

SFEDI (Small Firms Enterprise Development Initiative) is the UK’s recognised national skills body for enterprise and business support. For over two decades, we have developed and maintained national occupational standards for business support and developed and delivered accredited qualifications to enterprise support professionals across the UK. As the authoritative voice on business support competency frameworks and qualifications, SFEDI works with government, local authorities, and enterprise agencies to ensure quality and consistency in the advice provided to small businesses and entrepreneurs.

We submit this evidence based on our extensive experience in professionalising business support services and our direct engagement with thousands of business support professionals, enterprise agencies (through our partnership with the National Enterprise Network), and the small businesses they serve. Our perspective is informed by ongoing research into business support effectiveness and our role in developing the skills infrastructure that underpins successful enterprise support.

Question 1: What key issues should be addressed through the small business strategy?

The strategy must tackle the fundamental issue of fragmented and inconsistent business support across England. Currently, small businesses face a "postcode lottery" where the quality and availability of business advice varies dramatically by location. This fragmentation undermines the nation's ability to harness the full potential of its small business sector, which accounts for roughly 50% of GDP and one-third of employment.

Key priorities should include:

• Standardising business support quality through nationally recognised competency frameworks
• Professionalising the business support workforce via accredited training pathways and continuous development requirements
• Creating transparency for SMEs seeking advice through credible verification systems
• Eliminating geographic cold spots where quality support is unavailable

Question 10: Does the Government's current business support offer meet the needs of SMEs, and how could the offer be improved?

The current business support landscape is complex with no unified national model. While pockets of excellence exist, the system lacks clear infrastructure and visible access points, making it difficult for SMEs to access trusted advice.

Current gaps:

• No consistent standards for business support competency
• Limited professional recognition for support practitioners
• Fragmented delivery with significant regional variations
• Difficulty for SMEs, funders and stakeholders to identify qualified, credible advisers

Recommended improvements:

• Establish a professional qualification pathway for business support professionals
• Create a professional recognition scheme with mandatory continuing professional development
• Develop a national register of accredited advisers for transparency and trust
• Build an approved trainer network to ensure consistent, quality training delivery nationwide

This approach would create a virtuous cycle: standards inform training curricula, training produces for business support professionals, qualified advisers and support staff join a professional register, and the register signals quality to business owners and funders/Local Authorities.

Question 14: How should work across multiple government departments, mayoral strategic authorities, and local authorities be coordinated to support the growth of SMEs?

Coordination requires a unified framework that local and regional bodies can adopt consistently. Rather than creating new bureaucratic layers, the focus should be on establishing common standards, qualifications and recognition systems that can be implemented across different delivery channels.

Key coordination mechanisms:

• Shared competency standards that all publicly-funded business support professionals must meet
• Common training and certification pathways recognised across departments and authorities
• Integrated professional register that enables verification of adviser credentials regardless of delivery organisation
• Quality assurance framework that maintains standards while allowing local flexibility in delivery methods

This approach enables "policy coherence" - a ready-made tool through which government and local authorities can deliver on small business commitments more effectively, while ensuring SMEs receive consistent quality support regardless of which department or authority they engage with.

Question 15: What metrics should the small business strategy use to measure its success?

Success metrics should focus on both system-level improvements and business outcomes:

System Quality Metrics:

• Geographic coverage of accredited business advisers
• Number of qualified professionals maintaining current credentials
• Standardisation of support quality across regions
• Accessibility of professional development opportunities

Business Impact Metrics:

• Small business survival rates by region
• Growth rates of businesses receiving accredited support
• Entrepreneur satisfaction with adviser quality and consistency
• Reduction in "postcode lottery" effects for business support access

Professional Development Metrics:

• Career progression pathways for business support professionals
• Continuous professional development completion rates
• Industry recognition and trust in adviser credentials

These metrics would track progress toward eliminating the current fragmentation while measuring real impact on small business success. The strategy should aim to create measurable improvements in both the professionalism of support delivery and the outcomes for businesses receiving that support.

Conclusion

The small business strategy should prioritise creating a nationally coordinated, quality-assured model for enterprise support. This means moving beyond the current patchwork of local programmes toward a coherent system with recognised standards, professional pathways, and transparent verification mechanisms. Such an approach would strengthen the case for policy support and funding while ensuring every small business has access to qualified, credible business guidance regardless of their location.