Growth has been deemed the word of the year
Is our actions being followed by politicians who won’t stop talking about it?
Growth is the defining political theme for the year 2025, without a doubt. Every few minutes, every self-respecting Minister speaks up about something or a particular task they are undertaking. Politicians aren’t the only ones who are navigating the intricate web of profitable profits in an uncertain economic climate
The significance of growth is once again highlighted. Although the idea may seem unattainable, it is not a remote concept. Higher national income, better wages, and improved access to goods and services are the outcomes of economic growth. It raises standards of living, reduces poverty and creates more opportunities for people and businesses alike. The creation of jobs is also a result of growth. The expansion of businesses results in a rise in the number of employees employed. The focus on cost-cutting is often the only option when growth is slow, leading to job losses and a lack of innovation in the long run
The public sector is responsible for the employment of 18% of the UK’s workforce. The increase in economic output results in higher tax revenues, which can be spent on infrastructure, healthcare, education, and defense. Governments are faced with challenging decisions in the absence of growth – whether it be through job losses, underfunded services, or tax hikes
Our progress has been sluggish by any means necessary. An article in the Financial Times that compared the US and Europe caught my attention last month. The US economy has experienced a growth rate twice that of the UK since 2008. The UK has remained stagnant after COVID while the US has gained momentum thanks to a combination of fiscal stimulus, dynamism in the labor market, and entrepreneurship culture. The variation is particularly noticeable in the youth demographic. The US has a significantly higher percentage of 18- to 35-year-olds who possess houses and hold well-paid employment. The importance of this is not only for their own well-being but also for the economy as a whole, with young consumers who are driven by confidence to spend and invest
From various viewpoints, I comprehend the growth predicament. As the President of the BCC, I frequently engage in discussions with our 100,000 members, who are mainly small and medium-sized businesses. UK businesses are predominantly SME, accounting for 99% of the sector, which means they represent 85% of GDP and employ 61% of workers. The cautious optimism that many local businesses receive during their visits is often accompanied by ongoing concerns about planning and taxation. The atmosphere becomes less bright when the focus shifts to the national perspective. There is a persistent worry that the UK is not keeping up with current trends
A small karaoke chain called Lucky Voice, which I co-founded, was set up in private rooms. We have a workforce of just under 100 individuals spread across multiple locations. Just like every hospitality business, we are affected by the rapid changes in economics. We have a young, urban customer base that is especially affected by financial uncertainty. Negative publicity can cause them to feel uneasy about their spending habits, even if they have secured jobs, which affects our business operations
There are ample proposals for fostering growth. The British Chambers of Commerce has identified three key priorities, namely the commencement of infrastructure projects, improving trade relations with Europe through customs reform, and overhauling business rates to support high streets where vacancy rates have reached 13 percent. 9%. Nonetheless, I think there are three more that require equal attention
A serious reform of government procurement is necessary to begin with. Despite the government’s efforts to fix the system, it remains inefficient, untrustworthy, and opaque. While developing the Government Digital Service, I discovered a telephone line that cost taxpayers £250,000 per year and received four calls annually. It’s possible that this was an unusual occurrence, but I have reason to believe it wasn’ t. The public sector in the UK spends around £292 billion annually on procurement, but it is a complex process that leaves SMEs and startups feeling powerless. The procurement of software and hospital gowns necessitate distinct skills, but there is a lack of capacity in both areas. The implementation of a more efficient and transparent system will result in substantial savings and better support for British businesses
The second objective is to unlock the full potential of entrepreneurship, particularly among minority groups. The US is a top location for entrepreneurs to thrive, as it offers simplified startup and exit procedures. Comparing the UK environment to that of the 1990s, when things started lastminute, is quite interesting. Despite the presence of Com, we have the ability to go beyond its limit. It is still challenging for individuals from outside of established networks to raise capital, and bankruptcy is viewed as a death sentence rather than an opportunity for education
Underrepresented groups face greater challenges in both gaining admission and expanding their membership. In the UK, black-owned businesses are four times more likely to be denied loans than their white counterparts. Moreover, the fact that minority entrepreneurs are only granted less than 2% of venture capital shows how difficult it is for them to secure funding. Even so, ethnic minority businesses contribute roughly £25 billion to the UK economy every year, providing jobs for millions of people. Non-minority firms are less likely to innovate and have a 58% higher probability of exporting, in contrast to minority firms. What would be the extent of our growth if capital was more readily available to investors?
If women-owned businesses were funded and scaled at the same rate as males, they could add an additional £250 billion in value to existing businesses. The fact that only 2% of UK venture capital is allocated to women’s teams is astonishing. Addressing these barriers is not just a matter of fairness; it also involves accessing our vast economic potential
Our national narrative needs to be reframed, as stated in third place. I spoke on the radio about trade relations between UK and Europe a few weeks ago. The interview was going smoothly until the host turned to an entirely different topic, which happened to be a women’s only club that had gone into administration, and I was one of its founding members. Despite not being financially involved, the interviewer kept asking why I had started the business and how it had failed, as if it were a personal tragedy. The phrase “entrepreneurship is a tough job, but not everything is effortless” was repeatedly repeated by me
Even entrepreneurs who fail are still admired in The U S. C ultural norms should encourage individuals to learn and retry their previous experiences. Israel’s status as the “Start-Up Nation” gained it a global following. Through a compelling growth narrative, Singapore was transformed. Self-deprecation is a common theme in the UK, but it can be detrimental financially
The UK boasts a plethora of top-tier universities, exceptional talent, fantastic cities, thriving creative industries, captivating culture, and dependable legal frameworks. Our treatment of these assets is subpar
Whether it’s in green energy, life sciences, technology, or creative industries, we must actively promote our achievements. Both domestic and foreign investors are seeking confidence, and a country that doubts itself is not an ideal place to invest
Our objective should not solely be to achieve a top line increase in GD P. T he key to growth is that it benefits all individuals. Growth is not merely a superficial economic measure. Whether an individual receives a salary raise, secures investment, collapses, or improves public services, it can have practical effects
Having transformed from the workplace of the world to financial services, industrial leadership to creative and tech hubs, the UK has made significant strides in reinventing itself. The question is not whether we can progress, but whether our ambition is to overcome the hindrances that impede our progress. Let’s be hopeful and daring about the next ten years