Small Business Saturday

Debate between Bill Esterson and Ronnie Cowan

Tuesday 1st December 2015 Westminster Hall

[Ronnie Cowan]

I would not for one minute believe that women were more likely to fail at small business than men—certainly that is not my experience in my community, where many of the businesses are run by strong, vibrant and intelligent women. I am surprised to hear that. Despite the challenges, long hours and potential risks of running a small business, Heather is optimistic about her future operating an independent business in Inverclyde. She said:

“Setting up and running a small business has been one of the most challenging things we have ever done but also the most rewarding.”

I am aware that a range of support is already available to small businesses such as the Pirate and Bluebelle—I should point out that Inverclyde and, indeed, Gourock have many other good small businesses dealing in fine art. Assisting SMEs must be a collaborative effort across different tiers of government and various other organisations. In Inverclyde small businesses have access to a variety of support, including from Inverclyde Council, the Scottish Government, Riverside Inverclyde, Skills Development Scotland, Business Gateway and Scottish Enterprise.

At local authority level, businesses in my constituency have access to grants that assist with capital expenditure, staff training and structural improvements to business premises. Inverclyde Council provides a small business loan scheme to improve the small business start-up rate. A west of Scotland loan fund is also available, providing loans of up to £100,000 for established businesses operating for more than two years, while newer businesses may borrow up to £30,000 through the same fund.

Such schemes emerged in response to the small business concern of finding credit increasingly difficult to secure. Another local organisation, Riverside Inverclyde, has complemented the work of Inverclyde Council to tailor solutions specific to my constituency. It has promoted the establishment of small businesses by providing quality office space, which is an important task, because Greenock, formerly a town of heavy industry, did not have enough office space suitable for a modern, digitally connected business. In establishing or refurbishing six offices and business centres, Riverside Inverclyde has helped to secure more than 850 jobs.

[Bill Esterson (Sefton Central) (Lab)]

I congratulate the hon. Gentleman on securing the debate. He is talking about the support needed by small business, which, as he said, is vital all year round. Does he agree that the Small Business Saturday team is becoming more of an all-year-round support and is securing support, not least with its bus tour, which has travelled throughout the country for many weeks, to show that support is needed every day of the year, not only on 5 December?

[Ronnie Cowan]

Absolutely. This coming Saturday is a focal point, which is all about raising awareness, as is the debate. As the hon. Gentleman says, it is all year round, because it is sometimes a day in, day out struggle for businesses to keep their head above water.

At national level small businesses have been eligible for the Scottish Government’s small business bonus scheme since 2008. Almost 100,000 businesses now benefit from having their business rates reduced or completely removed—a record amount since the introduction of the scheme. The scheme has provided indispensable assistance to businesses throughout extended periods of difficult economic circumstances. Since its 2008 introduction, the amount of money being saved by businesses throughout Scotland has more than doubled and because of that competitive advantage, businesses in Scotland can this year save up to £3,200 more under the scheme than equivalent businesses in England can. I welcome the First Minister’s commitment that the scheme will continue throughout the next Parliament, should the current Scottish Government be re-elected.

Cross-border collaboration also benefits small businesses, in particular on important infrastructure projects such as improving access to superfast broadband. Federation of Small Businesses research found that 99% of small firms rate the internet as “highly important” to their business. I note that the Scottish Government are ahead of schedule in meeting their target of 95% of premises covered by superfast broadband by 2017, so we can see in practical terms how collaboration between levels of government and other organisations is critical to giving small businesses the support they need to thrive.

If I may be allowed to indulge myself, I cannot end my speech without mentioning that Inverclyde has many advantages as a place to do business. It is within commuting distance of Glasgow, is a short distance from Glasgow airport and enjoys excellent rail connections. Anyone wishing to start a business in the area can expect excellent tailored support from Inverclyde Council and Riverside Inverclyde, in addition to the wider benefits that the Scottish Government provide.