National Enterprise Network Responds to the Government’s “Backing Your Business” Plan

The National Enterprise Network (NEN) welcomes the Government’s Backing Your Business plan and its renewed commitment to creating an environment where small and medium-sized enterprises (SMEs) can thrive. With over 5.5 million SMEs in the UK forming the backbone of the economy, the plan’s ambitions closely align with the core mission of our members, who support businesses at the heart of their local communities every day.

The NEN network made up of experienced enterprise support organisations rooted in towns, cities, and rural areas—has long championed practical, place-based support that reflects the realities faced by micro and small businesses. The proposed Business Growth Service is a timely opportunity to strengthen this support system. For it to succeed, however, it must be delivered in partnership with trusted local agencies that understand the nuanced, real-world challenges these businesses face.

1. Fixing the Fundamentals

NEN strongly supports the plan’s pledge to tackle late payments—a persistent barrier to growth for small and micro enterprises. Late payments create unnecessary cash flow pressure, stifle investment, and threaten business survival. Our members frequently report this issue as a top concern, especially among sole traders and very small firms. The introduction of new enforcement powers, mandatory interest on overdue invoices, and improved public sector payment practices are long overdue and will be welcomed by the smallest players in the economy.

Modernising the tax system and streamlining regulation are also positive steps—but digital tools alone are not enough. Many micro businesses lack the capacity to navigate regulatory change without help. NEN members provide hands-on, localised support to interpret and implement these reforms, ensuring small firms benefit fully from simplification rather than being overwhelmed by it.

2. Unlocking Access to Finance

The expansion of Start-Up Loans, continued support through the British Business Bank, and the long-term commitment to the Growth Guarantee Scheme are all welcome developments. However, finance continues to be distributed unevenly—by both region and demographic background. Many micro businesses, particularly those led by under-represented groups or based in disadvantaged areas, still struggle to access appropriate funding.

NEN members work daily with aspiring and early-stage entrepreneurs who face these barriers. Embedding the Business Growth Service within local enterprise ecosystems would allow trusted advisers to act as finance navigators—helping small businesses find and apply for the right funding at the right time. This is a key step in ensuring that capital reaches those with potential, not just those with connections.

3. Backing the Everyday Economy

NEN welcomes the plan’s focus on the everyday economy and its practical measures to support retail, trades, hospitality, and other local service sectors. Proposals such as reforming business rates, banning Upward Only Rent Reviews, and addressing shoplifting and tool theft speak directly to the challenges our members are helping micro businesses tackle every day.

Importantly, the call for evidence and additional support for co-operatives, social enterprises, and community business models is a valuable acknowledgment of their role in inclusive economic growth. Many of our members work closely with these types of enterprises, and we urge the Government to be ambitious in both its design and resourcing of support for this vital part of the business landscape.

4. Future-Proofing Business Skills

NEN members already deliver targeted business skills support—whether through mentoring, digital adoption programmes, or leadership training. The continued commitment to skills investment, including £1.2 billion per year by 2028/29, represents an important opportunity to future-proof small firms and their workforce.

However, access must be equitable. Many small and micro businesses struggle to find or afford relevant training, and some lack the confidence or digital capacity to engage. Local delivery through trusted networks is essential to ensure the benefits of this investment are felt widely and fairly. NEN members are ideally placed to bridge this gap—supporting businesses in adopting AI, developing digital capability, and improving productivity.

5. Opening Up Opportunities

The proposed Business Growth Service is well-positioned to become a powerful connector—linking small businesses to opportunities in innovation, exporting, public procurement, and peer networks. However, if it is to serve micro and under-represented businesses effectively, it must be more than a digital portal.

Many of the smallest businesses—especially those in rural areas, run by first-time founders, or those with low digital confidence—require in-person, accessible support to navigate these opportunities. NEN members offer this kind of tailored, empathetic help, ensuring that businesses of all sizes, and from all backgrounds, can access and benefit from what is on offer.

Alex Till, Chairman of NENE commented, “To realise fully the ambitions of Backing Your Business, the Government must recognise the essential role of local enterprise support organisations, particularly in reaching the smallest firms. Micro and small businesses often operate with limited time, capacity, and knowledge of available support. Access to experienced, trusted local advisers can make the difference between success and stagnation. To achieve this continued funding for support organisations, many of which are NEN members, and are DBT-approved providers is essential to avoid a looming funding cliff edge in March 2026. Without action, there is a real risk that the very infrastructure needed to deliver this plan could be lost, just when micro businesses will need it most to respond to rising costs, new regulation, and market changes. We applaud the Government’s ambition and its engagement with the business community but delivery is everything. NEN and its members stand ready to partner with the Government in bringing the Backing Your Business plan to life in every high street, village, and enterprise hub, and ensuring that no small or micro business is left behind.”