On 26th March 2016 the SBEE will come into affect with the aim to improve the UK’s business climate and economic position. The question on many peoples’ minds is: how will the act affect UK SMEs?
As of 26th March 2016 the Small Business, Enterprise and Employment Act (SBEE) will come into effect in the UK. SBEE has been created to support SMEs and new start companies in the UK, with the ultimate aim being to encourage innovation, growth and to provide the ability to compete and obtain finance.
The act addresses 11 major business areas which currently and continue to impact SMEs in the UK. Our blog runs through the particular areas which we feel will have the most positive impact on the business world today.
Access to Finance
In the past SMEs and new start-up businesses have struggled to obtain finance, this struggle has hindered growth and in many cases has made running a business very difficult. SBEE aims to address this issue by:
- Increasing the availability and sources of investment for small businesses.
- Opening up access to small business credit data, levelling the playing field between lenders and making it easier for small businesses to obtain loans from lenders other than their bank.
- Requiring banks to pass on details of any SME they decline for a loan – subject to the SMEs permission – to online platforms which can help them with alternative finance providers.
These measures will enable SMEs to obtain the finance they need to invest in important assets and projects whilst covering existing overheads. Easier access to finance will encourage innovation and build confidence in investment, a great combination for business growth.
Company Filing Requirements
The act will introduce new company filing requirements to remove excessive bureaucracy, specific examples being:
- Simplification of registration processes such as incorporation and tax registration.
- Changes to accounts filing procedures in order to remove duplication.
By removing red tape and unnecessary barriers starting up a business will be a lot easier.
When the act comes into effect companies will be expected to do the following:
- To keep a register of people with significant control in the company.
- Abolish bearer shares.
- Prohibit the use of corporate directors.
Improved transparency will make it clear who own and controls UK companies which will hopefully promote good corporate behaviour. As a result the reputation of the UK as a trusted and fair place to do business will be enhanced.
Encouragement of business growth and innovation, easier set up processes and a trusted and fair place to do business, this act is already sounding beneficial to SMEs in the UK. We have only discussed a few elements of the act, there is an additional 8 parts to act which we recommend you take a look at.