Opportunities and obligations: sources of information for directors of small businesses
Government information hub for Directors
Being a director of your own business can be incredibly rewarding and the UK is one of the best places in the world to form and grow a business, with thousands of great ideas transformed into thriving businesses every year. When the Nobel laureate Nicholas Murray Butler was asked what the most important invention of the industrial era was, his answer was the concept of the limited liability company, which brought with it the ability to separate or mitigate personal risk from business expansion.
Despite the bewildering changes globalisation and technological developments have brought since, this remains as true today as it was in 1911 when Butler first said it, and as it was over the two centuries Butler was asked to look back on.
In addition to rewards and opportunities, being a company director and running a business can bring responsibilities and challenges, particularly for the 4.5 million private limited companies in the UK with just one directori. For most directors of smaller businesses, the day-to-day focus is on running the business itself, managing customers and teams, and finding opportunities to grow. Against that backdrop, the formal responsibilities that come with being a director can sometimes feel complex, time-consuming and, at times, overwhelming. It is important to understand both the benefits and responsibilities of being a director, particularly in navigating challenging times.
Directors and business owners do not have to travel these roads alone, however. The small business strategy set out the government’s plan for small and medium-sized businesses. These commitments are complemented by an increasing range of accessible guidance, resources and support. These include the Director information hub, information from Companies House about what you need to do to set up a company, and information from the British Business Bank and this Better Business Finance website about types of finance and how they can be accessed. In addition, the government will shortly be providing a one-stop shop to bring together all sources of support and information, through the Business Growth Service.
With the right resources and support, directors can feel more confident about meeting their obligations and spending more time focusing on what matters most: running and developing their business.
