Commenting on today's public accounts committee report about the "questionable" value of the Small Business Service (SBS), David Frost, Director General of the British Chambers of Commerce, said:

"We are in favour of any organisation which provides support to small businesses. However the current framework of the SBS limits it capabilities to do so."

"In order to create an enterprising culture the SBS needs to define exactly what it provides and how it intends to do so. Their current strategy is somewhat ineffective with many small businesses unable to see the impact of their work."

"The British Chambers of Commerce 2006 Burdens Barometer measured the cost of regulation to the UK economy to be £50.27 billion.1 This cost affects mainly small businesses who find it hard to absorb the expense of red tape. It is fundamental that the SBS engages more in the policy process to ensure that the needs of small businesses are heard and that the regulatory burden is reduced."

"The disproportionate level of small firms who default on loans from the SBS and the fall in funds being distributed to help small firms is also worrying as small businesses are the backbone of many communities throughout the UK.  More clearly needs to be done to support local enterprise."

"The implementation of a clearer and more defined strategy, the better management and distribution of small business loans along with a more robust voice to air the needs of small businesses will help small businesses to see if the SBS is effective and capable of meeting its objective to enable them to thrive."