Small Businesses Waste 33 Hours Monthly on Admin While 74% Ignore Government Help, New Service Reveals

British small business owners are losing nearly a full week each month to routine administrative tasks, with a significant majority avoiding available government support. These findings, released alongside the launch of a new Business Growth Service, highlight the urgent need to address the UK's small-business productivity crisis.

The average small business owner spends over 33 hours each month on internal administration. When scaled across the UK's 5.5 million small businesses, this amounts to a staggering loss of productivity, threatening the sector's contribution of £2.2 trillion (approximately $2.8 trillion) annually to the economy.

The Hidden Cost of Fragmentation

One of the most troubling revelations is why so many businesses struggle despite existing support mechanisms. Only 26% of UK SME employers reported seeking external advice or information in 2023, meaning a staggering 74% operate without accessing available government resources.

Business and Trade Secretary Jonathan Reynolds addressed Parliament, emphasising that the fragmented support landscape creates barriers for small firms. 'Small businesses are the beating heart of our high streets and communities, accounting for 99.8% of all businesses and 16.6 million jobs,' Reynolds said in a written statement to the House of Commons.

This productivity crisis has significant economic implications. In 2023, small businesses exported £85 billion ($107.9 billion) worth of goods, but administrative burdens hinder owners from focusing on expansion, hiring, and international trade opportunities that could substantially increase these figures.

What the New Service Will Change

The Business Growth Service's digital platform launched in July 2025 as part of the government's Small Business Plan, serving as a 'one-stop shop' for central, devolved, and local partners, including Innovate UK and regional authorities.

On 20 November, the service launched a nationwide roadshow, starting in Newcastle with over 100 SMEs attending. Partners like the North East Combined Authority, Innovate UK, Sunderland University, and UK Export Finance showcased their support.

Reynolds stated, 'We said we'd deliver change for small businesses, and that's exactly what we are doing. For economic growth to succeed, SMEs across the country to be exporting, hiring, and expanding.'

The platform aims to reduce the 33-hour monthly admin burden by providing direct access to funding information, expert advice, and export opportunities through one portal. Currently, businesses face overlapping programmes, regional variations, and unclear eligibility criteria, which deters many from seeking support.

The Adoption Challenge

Success depends on overcoming small business owners' reluctance to seek help, with 74% not engaging due to time constraints, lack of awareness about available support, and previous negative experiences navigating bureaucratic systems.

The Department for Business and Trade will conduct extensive consultations with businesses, representative bodies, and devolved governments as the service expands. The platform emphasizes locally-led delivery to match regional needs.

Blair McDougall, Minister for Small Business and Economic Transformation, said: 'Small businesses are the backbone of the economy, and the heart of our growth mission, which is why we are determined to see them thriving in every part of the UK. Through this new roadshow, kicking off today in Newcastle, we are levelling the playing field for support, finance, and advice, so that all SMEs have access to the support they need to start up, grow, and succeed.'

Grace Thompson, UK public affairs lead at the Chartered Institute of Export & International Trade, welcomed the announcement but noted that raising awareness will be vital to encouraging uptake among business owners who currently operate without external guidance.

Economic Stakes

Small businesses are vital for regional growth and jobs. The 33-hour monthly admin time equates to about 15% of a working month lost to internal processes rather than revenue-generating activities.

Research shows external advice boosts productivity by 22%. If SMEs grow by just 1% annually, they could add £320 billion (~$405 billion) to the UK economy by 2030.

The service will also assist companies expanding internationally, addressing the challenge many small exporters face in overseas markets.

Parliamentary records indicate the Business Growth Service is part of the 2025 Small Business Strategy, with further policy interventions under development.