In his latest blog, FEP Director Ian Mean MBE looks at the business make-up of the Forest of Dean with a clear message - SME's are the backbone of this district.
The key to growth, in my view, is not our large companies but those small and medium size companies we call SMEs.
And here in the Forest of Dean they are a vital constituent of our local economy.
Overall in Gloucestershire, there are just under 30,000 of these SMEs according to the County Council, and I think government must do everything they can to support them, and in many cases, help them to survive.
There are actually around 3,375 small enterprises in the Forest and they make up the largest proportion of the companies in the area at 3,725.
And of the small companies most are micro enterprises—that means they have 0-9 employees. There are 300 small enterprises with 10-49 employees and just 45 medium size companies with 50-249 employees.
So, the reliance of the Forest economy on our small enterprises is very evident with over 90% of micro businesses-the highest proportion for this sector in the county.
These small companies are under threat like never before with the perhaps the biggest blow to their survival and future investment coming in the form of the 15 % hike in their National Insurance contributions (NICs) which has just come into force.
This is a hammer blow to a small company wishing to take on employees-particularly apprentices -who find they are now paying more money for every employee on the payroll.
Hardly encouraging.
And as a result of the National Insurance hike, a survey by the Reed recruitment company shows nearly half the 254 companies surveyed will be curtailing their recruitment.
For our SMEs, the National Insurance hike has piled on the pressure on firms now also facing higher minimum wages and Business Rates in addition to the cost of adapting to new workers’ rights.
We are promised a new industrial strategy by the government. Let’s hope it will help our SMEs—they are the key to growth.
*Ian Mean MBE is a member of the Gloucestershire County Council Economic Growth Board
Image: Tom & Lucy, owners of Hips Social, outside their cafe in Lydney. A welcoming, refreshing and modern destination in the heart of the town centre.