The government has just revealed the details of a new initiative called the Business Basics Fund, which aims to unlock a massive £100 billion in untapped economic potential. This £8 million fund is part of the UK’s industrial strategy and is focused on helping more small business owners in England embrace technology to improve productivity.
Delivered by the Department for Business, Energy, and Industrial Strategy (BEIS), the fund is working in partnership with Innovate UK. Their goal is to support businesses, charities, trade organizations, and public sector bodies in assisting small businesses with their digital transformation.
In a speech to the Confederation of British Industry (CBI), Small Business Minister Andrew Griffiths announced the fund, after CBI research revealed that small businesses adopting technologies like cloud computing, mobile tech, and e-purchasing could help unlock a £100 billion boost for the UK economy. Griffiths pointed out that over 1,000 new businesses are launched every day, making it essential for the government to help them grow through the country’s modern industrial strategy.
The Business Basics Fund will test new and innovative ways of helping small businesses use technologies and management practices that can help them thrive. This will provide small business owners with the tools and support they need to succeed in today’s digital world.
Supporting the Digital Transformation of Micro Businesses
The initiative also focuses on micro businesses and how they can navigate the challenges of digital transformation. Business owners are encouraged to assess their current situation and the obstacles they may face as they make the leap into digital adoption.
Details on how to apply for funding and further information can be found through the Innovation Funding Service. The first round of the Business Basics Fund has £2 million available to support businesses in their digital transformation journey.
Tackling Britain’s Productivity Challenges
Matthew Fell, the Chief Policy Director at CBI, emphasized that UK businesses need to improve productivity to stay competitive on the global stage. He noted that the country’s current technology adoption levels are close to the EU average but are lagging behind leaders like Denmark by almost a decade. Fell argues that now is the time to address this gap to help businesses be better prepared for the future.
The new Industrial Strategy could be the perfect vehicle to address this missing piece of the productivity puzzle. It provides a strong foundation for businesses to leverage the benefits of technology and modern management practices.
Nesta’s Support for the Business Basics Fund
Geoff Mulgan, Chief Executive of Nesta, a foundation focused on innovation, welcomed the launch of the Business Basics Fund. Nesta has previously run experiments and supported business growth in several countries. Mulgan pointed out that this initiative is an exciting step forward for the UK, as it applies experimental methods to boost productivity and ensures that public money goes into programs that really work in the long run.
Key Foundations of the Industrial Strategy
The UK government’s Industrial Strategy is built on five core foundations of productivity:
- Ideas
- Place
- Infrastructure
- Business Environment
- People
These pillars are designed to foster growth, innovation, and productivity across the UK, helping businesses unlock their full potential.
FAQs
Q1: How can I apply for the Business Basics Fund?
You can apply for the fund through the Innovation Funding Service. The application process and further details are available on their website.
Q2: Who can benefit from the Business Basics Fund?
The fund is available to small business owners, charities, trade organizations, and public sector bodies that can support the digital transformation of micro and small businesses across England.
Q3: How much funding is available in the first round?
The first round of the Business Basics Fund has £2 million available to support businesses.
Q4: What kind of technologies can small businesses adopt through the fund?
Technologies like cloud computing, mobile tech, e-purchasing, and other tried and tested management practices are eligible for support.
Q5: What is the goal of the Business Basics Fund?
The fund aims to help small businesses increase their productivity by adopting digital technologies, ultimately driving economic growth across the UK.
Conclusion
The Business Basics Fund is a vital step toward helping small businesses in the UK thrive in today’s digital age. By supporting digital transformation, this initiative aims to unlock significant economic potential, improve productivity, and ensure that the UK remains competitive globally. Whether you’re a small business owner or part of a larger organization looking to support small business growth, this fund offers the tools and resources to help your business take full advantage of the technology that can drive success in the years ahead.