Small and medium sized enterprises (SMEs) are often said to be the driving force of the UK’s financial system - without them the economy would struggle to survive. With the UK general election just around the corner, it is important for party manifestos to pay particular attention to the needs of SMEs in order to help them thrive.

Confidence in the UK’s economy is on the rise, but despite this recovery still remains fragile. Businesses – particularly SMEs, start-ups and entrepreneurs - need ongoing and consistent support in order to grow and significantly contribute to the economy. So what should a business friendly manifesto include?

"Pledges should be made to ensure that people are able to keep more of what they earn"

In order for a manifesto to be business friendly, it should address a number of key issues encompassing, but not limited to, the below:

1. Provide added support and investment for all SMEs.

2. Encourage exports and innovation.

3. Provide access to funding by increasing the British Business Bank’s sphere of activity. Pledges around ‘alternative finance’ should also be considered.

4. Reduce regulations and keep them in constant review via the one-in-one-out system.

5. Reduce the cost of employment, particularly employer’s national insurance.

6. Create and maintain a tax efficient environment for business and wealth generation.

7. Support the private sector. Small and medium sized firms accounted for 99.3 per cent of all private sector business in the UK at the end of 2014 .

8. Acknowledge that the UK economy must move to hi-tech, high quality, green economy.

9. Nurture and protect knowledge, create new industries and new jobs.

In order for new manifestos to fully meet the needs of small and medium businesses, they must address a variety of requirements. Each party will have to demonstrate a clear understanding of the kinds of proposals that will actually benefit SMEs so they can make targeted recommendations.

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Interest rates are of great importance when it comes to trading within global markets as they can keep deficit and debt under control whilst also determining the stability of international financial and monetary markets. Investment in areas such as energy sources and large green and low carbon schemes for energy efficiency are also vital and must be addressed.

In terms of regional and national requirements, each manifesto needs to look at developing private sector dynamism and entrepreneurship. This is because a large part of the private sector is made up of small and medium sized businesses and all will need support to encourage their growth.

This could perhaps be addressed by enabling SMEs to tender for public sector work locally. Supporting local renewable energy schemes will also ensure that local communities benefit from the savings.

Business taxes and rates are another factor that can affect a company’s growth. Party manifestos should look to introduce and maintain lower rates and also expand tax incentives for share ownership by employees.

Small business entrepreneurs know @Conservatives are better for business than any other party https://t.co/gxApl8MelE

— CCHQ Press Office (@CCHQPress) March 3, 2015

In addition, alternative lending approaches need considerable thought in order to aid the growth of SMEs. If a company has problems assessing funding, then this can halt their general investment and growth, and even send the company under. Funding options can include sources such as crowd funding or pensions led funding.

Expanding loan guarantees and enterprise guarantee schemes should be made readily available, as well as access to competitive rates of borrowing.

Access to apprenticeships is another important area that manifestos should focus on, with particular attention being paid to investment and in-work training so that young people have more opportunities to enter the workforce. This also includes looking at employer and apprentice benefits and employer bonuses to help companies retain the best talent.

For individuals, pledges should be made to ensure that people are able to keep more of what they earn. Schemes that reward success such as the Entrepreneur’s Relief scheme should be supported and maintained. Further to this, by increasing the inheritance tax threshold (IHT), people will be able to keep and pass on more of what they have earned.

Regulations that manage risks, such as banking, should be an important consideration in party manifestos. Current rules concerning SMEs are too great at the moment, and parties need to focus on reducing unnecessary regulations. Parties should stay clear of riskier investment back operations and focus on accelerating ring fencing or retail banking operations.

With all of this said, no one can say exactly what each party manifesto will offer to SMEs. Despite this, it is still important to be prepared and to recognise the needs of small and medium sized businesses to assess how the general elections may affect them.