UK business support system “not fit for purpose” under funding pressure

Our latest report warns that the UK’s business support system is struggling to deliver impact and risks falling short without stronger foundations and better use of technology.

Despite growing expectations on councils, Growth Hubs and delivery partners, the system remains fragmented, inconsistent and shaped by short-term funding rather than long-term infrastructure.

The report finds that underinvestment in shared infrastructure has created a fragmented landscape, leading to inconsistent advice for SMEs, inefficient delivery and limited ability to track impact. With public funding under increasing scrutiny, this model is becoming harder to sustain.

Paul Dickens, Managing Director at Oxford Innovation Advice, said:

“Funders are being asked to deliver more impact with fewer resources. But business support is still built around short-term programmes, with limited investment in the infrastructure that underpins it. The result is inconsistency where it matters most – when businesses are first diagnosed and support is defined.

A key issue is the lack of a consistent diagnostic approach. Businesses can receive different advice depending on where they enter the system, while insight is captured inconsistently, cannot be shared easily, and is often lost – making impact harder to measure.

The report calls for a move towards a consistent diagnostic and insight layer across programmes, enabling:

  • a common starting point for businesses
  • comparable data across regions
  • more efficient delivery
  • stronger evidence of impact

Technology as an enabler

The report highlights GrowthCanvas, a software platform designed to standardise diagnostics, enable data sharing, and track business progress over time. Used by a growing number of business support organisations, GrowthCanvas supports advisers to give higher quality support, it does not replace them.

Alongside streamlining business support delivery, GrowthCanvas develops ownership of aggregated data, meaning that it can help align the future of business support, shaping future programmes and initiatives based on the reality of SME sector, engagement and geography.

With increased demand from SMEs for tailored, expert advice and funders keen to support business growth despite constrained funding, the report concludes:

The current model is becoming increasingly unsustainable. The question is no longer whether investing in business support infrastructure is desirable, it’s whether the system can afford to continue to deliver without it.

To read the full report, click here: Insight Report-Growth Canvas April26

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