WIREDGOV

UK economy boosted by Government small business service

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/011) issued by The Government News Network on 10 July 2007

Small firms using the Government's Business Link service grow their businesses, increase their employee numbers and add £750 million to the economy each year, a report published today shows.

The study of more than 3,000 small businesses showed that those who used Business Link had greater job growth than those that did not use the service.

The study* found that for every £1 spent in government funding, Business Link achieved £2.26 of additional value to the economy as a result of better business performance.

Unveiling the report, new minister for small business, Stephen Timms said:

"Small and medium enterprises account for a large portion of the UK economy. This report shows the Business Link service is being used by many of them for help and support, boosting the economy as a whole."

"We will continue to grow the Business Link service, making it the definitive place for small businesses to find support."

The research also showed that using Business Link helped businesses:

* Run successful staff training programmes
* Develop business plans
* Develop marketing strategies

Business Link is the first port of call for anyone looking to start, develop and grow a business. It is a key part of the Government's campaign to promote enterprise and make the UK the best place in the world to start and grow a business.

Notes to Editors

1. The Survey
*The Early Stage evaluation of the Economic impact of business link Local Services is published today on the BERR website in the Small Business, Research and Stats section:

http://www.berr.gov.uk/bbf/small-business/research-and-statistics/index.html

2. The evaluation was carried out by a team of economists from Warwick, Kingston and Aston University Business Schools.

3. They carried out in-depth interviews with businesses and Business Link staff, and a telephone survey1 of just over 3,000 businesses - 2,000 that had received assistance from Business Link and 1,000 similar businesses that had not used Business Link, to act as a comparison group. The impacts identified by the evaluation are therefore over and above what would have been achieved by businesses without support.

4. The Economic Impact Study of Business Link Local Services was carried out by a team of economists at Warwick, Aston and Kingston University Business Schools. It surveyed businesses that used the Business Link local service and compared their performance to those that did not.

5. Business Link
Business Link is the primary access channel for anyone looking to start, develop and grow a business. It provides fast-track customers to the expert help they need.

6. Business Link is available locally and quality assured regionally to clear national standards.

7. Local Business Link services are managed by the Regional Development Agencies (RDAs) operating within a nationally agreed framework. This devolved management responsibility ensures that a nationally recognised brand is integrated with regional and local needs, whilst retaining a nationally consistent look and feel.

1 The administration of the survey was sub-contracted to OMB Research

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