More than 10,000 owner-managers were enrolled in the UK-funded MBA scale-up program for small and medium-sized businesses created by the previous Conservative government, which helped it survive under the Labor government.
According to figures released this month by the Ministry of Commerce and Industry, as of the end of September, approximately 10,635 people were enrolled in business growth support courses.
This is a third of the target set by Rishi Sunak when he launched Help to Grow in 2021 as chancellor to improve Britain’s poor productivity record.
However, this is a 12-week course that provides 50 hours of in-person and online training, 10 hours of mentoring support, and alumni networking to managers in companies from 5 to 249 employees, but it is not comparable to the private sector. This means that the scale exceeded the previous efforts.
Approximately 2,300 small business owners have completed Goldman Sachs’ 10,000 Small Businesses Program (GS10K) since its inception in 2010, and the program has an alumni network of more than 53,000 employees. It boasts twice the educational time as Help to Grow.
The investment bank’s program is aimed at existing businesses with a turnover of at least £250,000 and between five and 50 employees.
Rachel Reeves was sufficiently impressed by the Support for Growth data to support the plan. In his October budget, the current prime minister promised to continue covering 90% of fees. This means the cost per participant will be just £750 for the next 12 months.
At its launch in 2021, the scheme’s original target was to reach 30,000 businesses over three years. But Tina McKenzie, policy chair for the Federation of Small Businesses, said initial struggles to attract participants had eased after the government listened to feedback from employer groups.
“When you run a business, you often don’t have much time for other things,” she said. “Many business owners who could benefit from Help To Grow were unable to participate because of the time it takes.”
Mark Hart, professor of entrepreneurship and corporate policy at Warwick Business School, said funding for ‘support for growth’ marketing was a major constraint on demand.
“With the marketing budget, we could have easily reached 30,000 (participants),” said Hart, who also participates in the GS10K Small Business program. “The plan was handcuffed from the beginning.”
The newest students at King’s Business School in central London look nothing like the investment bankers, consultants and directors of FTSE 100 companies who typically enroll on MBA programmes.
Among them is Naved Siddiqui, director of operations at Pacific Seafoods. The company is looking to double the size of its south-west London hub, thanks to a £4.7m bank loan it helped secure during its time with Help to Grow.
Siddiqui also credits the guidance he received in the course with helping him restructure his company’s reporting lines to achieve more.
“We have 35 people, and they all came to me,” he said. “I realized that people were there to take their business to the next chapter, and I was the bottleneck.”
Julian Glyn-Owen, who is responsible for various executive education programs at King’s School and is the current leader of the group, says Help to Grow aims to help those with ambitions who typically have difficulty obtaining formal education to improve their skills. He said that it is reaching people who have.
“These are real business owners who are dealing with 360-degree challenges, usually with two or three other leaders in the business, and this is having an impact,” he said.
According to an Ipsos study cited in the Small Business Charter, approximately 62 percent of owner-managers who complete the Help to Grow program report an increase in sales. The organization accredits 68 business schools in partnership with small and medium-sized businesses. 91% reported increased awareness of the factors that drive productivity and growth.
Alexandra Charles, vice chair of the SBC and associate dean of the University of Derby’s Business School, said Help to Grow had also supported provider schools by supporting research and apprenticeships, employing graduates and providing office space on campus. .
“There are opportunities here that didn’t exist before,” she said. “We not only provide management and leadership training, but we also open the door to all other research and development opportunities.”
A key factor in ensuring that Help to Grow can survive beyond 2025 will be whether it can generate evidence of real productivity gains through better management and strategic decision-making.
Mr Reeves set new targets for public sector productivity in his first budget, but recent falls in output have dealt a blow to Labour’s ambitions to boost economic growth.
Mr Hart, from the University of Warwick, said he believed “support for growth” would play a key role in helping the UK achieve its goal of becoming the G7’s fastest growing economy by the end of this parliament. Ta. But he added that it would take several years for the impact of “growth support” on macroeconomic conditions, particularly on productivity figures, to be reflected in official data.
“There are no negative opinions within the Ministry of Commerce and Industry,” he said. “What matters is whether we can get enough money from the Treasury to keep it running.”
The Ministry of Finance stated: “The Budget Committee confirmed over £200m of funding for a wide range of small business support in 2024-25 and 2025-26, including continued funding for Help to Grow in 2025-26. ’s funding decisions will be confirmed at the conclusion of the multi-year spending review.”
