The Government Is Currently Doing A Terrible Job In Supporting SMEs. Almost a decade after the 2008 recession and business has come a long way. So, here we are with this blog of why government should encourage business strategies?
It’s been nearly four years since the UK’s fiscal recovery plan was enacted, requiring the government to balance the budget by 2015 and return all the public debt accrued from the recession to the private sector.
This week’s budget represented the start of the final year of this government’s tenure. It also marks the first time Margaret Thatcher began her government to stand on a fiscal consolidation program. However, many still lament the previous government’s business policies.
The question now is whether the government will continue to pursue a successful business strategy, or will it continue to pursue a business strategy that has failed?
The Business Strategy Which Failed The UK
One of the government’s key strategies to improve the business climate was the Business Strategy Review (BSR). That was the government’s new strategy for the business environment. The idea behind this new approach is that government departments and agencies would be made responsible for achieving specific outcomes in business areas.
It will attempt to balance these outcomes with the national interest. It seems, however, that the government is continuing in the same old pattern of pursuing a business strategy that it has been following over the past four years.
Role of Government:
The government has done a terrible job in increasing the speed of business and delivering change to a business environment that has become progressively more hostile for companies.
Regarding increasing the speed of business, it is the business community that has called for many years for measures to stimulate the private sector through the incentives of a more significant competitive environment.
The government failed, in my view, to grasp the true nature of the problems and have fallen back on the failed business strategy, which has been failing businesses for decades.
This strategy relies on the continued upward growth of the non-financial sector, which has been a failed strategy and, in turn, depends upon the continuance of a highly regulated, centrally controlled business environment. That is not a business strategy to succeed.
Business Strategies In Focus
Many competing business strategies have ignore or not dealt with. That is because business strategies are considered to be irrelevant to the government’s business strategy and therefore are not market. This strategy has encouraged the private sector to expand and increase business growth in the non-financial sector.
Yet over the past four years, there have been no severe strategies put forward by this government to take advantage of business strategies that are currently working and not being followed.
Perhaps, if serious business strategies were being put forward, the government would take them seriously and put them into practice. To my knowledge, none of these strategies are mention in this week’s budget.
From my analysis of these strategies, I believe that the process based on a deliberate plan by business to introduce new competition into the financial sector has been largely successful.
The private sector has been taking advantage of this competition.
However, in other private sector areas, the match could not go further than the initial stages. We had situations where businesses are require to keep high revenues through their relationships with Government departments and their regulation. Should have continued the process of introducing competition.
A Strategy Based On Business Strategies In Focus
Of course, it is the responsibility of businesses to decide how to operate. Specifically, these are the key questions to be ask.
Is there a business strategy in place? So, does it make effective use of the resources and capabilities of the business? Does it address the business needs?
What is the purpose of competition?
Is it to enhance the opportunity for businesses to create wealth for the benefit of society as a whole or to create wealth for a small minority?
The government has not taken seriously the strategy of a business strategy to create competition. In the financial services and insurance industries. But, if there were a successful business strategy. However, it would be an incentive for the government to do the best to support it.
In my view, if the government wants to encourage business growth and productivity. However, the strategy of economic regulation will not help in this endeavor. Still, it is the success of competition that would.
For far too long, businesses have been hamstrung by regulation. So the possibility of a competitive advantage over a regulated industry is minimal.
The government has failed to put forward an effective strategy. And it seems to have fallen back on an outdated business strategy of expanding the financial sector.
The promotion of business strategies in the non-financial sector is essential to economic growth. And economic growth is critical to economic prosperity. Therefore, it is necessary to consider these business strategies in the development of business strategies in the financial sector.
We are struggling to build an economy based on business strategies that allow the business to drive it to take advantage of new opportunities, create wealth for its shareholders, grow its profits, grow employment, and bring innovation to its companies. Therefore, if strategies are follow by businesses to create wealth, this should be support by the government.