Written by Spencer Murphy, founder of The Lending Front.
The beauty of small to medium-sized enterprises (or SME) is their simplicity and drive. The basic aim of an SME is to provide an income source for the individual and their family. Many small businesses are based on a simple idea or passion, which can be used to provide for their community. They hire local staff, buy local supplies and benefit their local community. They are not just there to please shareholders and maximise profit.
SMEs tend to employ locally, increasing the local economy by providing a steady salary, which could then be spent at local businesses. Secondly, independent businesses will commonly purchase their equipment from local suppliers. This keeps the local economy ticking, while decreasing environmental costs from logistics. SMEs can only grow within their own means — they are driven by their own profit, which allows them to have sustained growth after a long period of time.
Every high street has its own character and charm driven by the local businesses surrounding it. Whether it be the traditional family-owned pub or local garage, they define their local area and create the community identity. With many employing multiple generations from multiple families, these businesses create common ground on which people can reminisce. They can also be a great source of pride. Think about ‘Barbour’ – originally a family run business from Newcastle, now worldwide. These businesses can also inspire locals to set up their own businesses, seeing people from the same background create extremely successful organisations.
When working for an SME, employees can pick up more skills as they are exposed to more aspects of the business, due to the company size. In corporations you are divided into specific departments working on specific tasks. For small independents, this isn’t possible as there are too many tasks per staff member. This isn’t to say that if you are working for an SME in human resources you are then going to be on the phones selling, but it does mean you will have more tasks within the human resources department.
These employees will then develop a lot more skills that are transferable to multiple jobs, and will benefit them hugely in their future career. SMEs give employees a sense of identity and purpose in their work. They will be part of a company that may want to grow. This allows employees to feel they are part of something and to look back on their career knowing “they were there” as the business grew.
As SMEs grow, they will need to promote people to new roles. This process will more than likely occur from within. This allows for quick career progression for many, and allows staff to gain more responsibility along with a higher paycheck.
With a small business, you can build a relationship with it and all its employees. You trust them — especially for a service you’re not an expert in. For example, if you are a mechanical novice and need your car fixed, you go to people you trust. Local businesses can be highly beneficial to communities that require a certain expertise service, run by people that can be relied on again and again.
How are we supporting local business?
The Lending Front was set up in order to provide information about unsecured loans and lending. Previously, I worked for an alternative lender and believe a lot of my customers didn’t fully understand what they were signing up for, so I wanted to provide a place where independent businesses could gain confidence and knowledge to understand business Financials.
This is particularly important during the coronavirus crisis, as many businesses are suffering financially and will be searching for other financial options to keep afloat. We have articles detailing the various financial options from the Government and how you can access this funding, as well as other methods of getting finance.
The website has ‘how to guides’ and information about the basics of finance, with a contact form if you as a business need help finding funding options. We also have short video explanations on our YouTube channel
We wanted to provide a website to help all understand the complexities of finance, but given in a simple, unbiased, easily digestible format. We, at The Lending Front, believe that supporting local business is incredibly important, not only during Corona Virus lockdown but for the future.
For more information, check out our website
The Lending Front is helping to achieve: