Small businesses ‘punching above their weight’ for charities

Most small businesses in Scotland make a contribution to their communities or give to charity, according to a new report.

Most small businesses donate to local causes. Picture: Chris Radburn/PA Wire

In a survey examining the impact of small businesses, 82 per cent of 267 respondents indicated that they had contributed to local causes in the last three years.

The study, conducted by the Federation of Small Businesses (FSB) in November last year, suggested that the figure is higher than in the rest of the UK, where 80 per cent of 1,876 respondents said they had made a contribution.

Their findings also highlighted that a third of Scottish businesses (33 per cent) had contributed enterprise skills to their local community – with one example cited in the report as a local restaurant giving free cookery classes to low income families.

Andrew McRae, of FSB Scotland, said: “Anyone with their finger on the pulse of their community knows that smaller businesses play a pivotal role. In our new research, we try to measure this contribution and we find that local firms are punching well above their weight.

“This new report underlines why it is important that policy-makers give smaller firms the best chance of success. That’s why we’ve made the case for rates help for the smallest Scottish operators and for them to get a fair share of public contracts.”

The FSB has called on the UK government to deliver on a manifesto promise for a one-year National Insurance Contributions (NICs) holiday for firms that employ individuals from disadvantaged groups.

In the UK, the report indicates that smaller employers are more likely to hire those from harder to reach groups than big corporations.

The majority (78 per cent) employ an older worker, a third (34 per cent) have a member of staff with low levels of educational attainment, and a similar share (30 per cent) employ at least one person with a known disability or mental health condition.

FSB national chairman Mike Cherry said: “Back in 2017, the Conservatives promised that if elected they would introduce a one-year NICs holiday for firms that take on those with a disability, mental health condition or who have been out of work for some time. We’ve been left asking: when will this promise be delivered? Two years later, it should be prioritised. We look forward to the Chancellor outlining exactly how the commitment will be taken forward.”