SMALL FIRMS AND THE SELF-EMPLOYED
81. Small firms are an increasingly significant sector
of the economy. 45 per cent of the private sector workforce now
work in businesses employing fewer than 50 staff.[133]
Small firms and the self-employed also have a relatively poor
health and safety record, with, for example, a proportionately
worse record for fatal accidents (roughly double that of large
firms).[134]
Furthermore, given their numbers, the HSE finds it difficult to
achieve good penetration of health and safety advice in these
workplaces. Enforcement, we were told by the Institution of Occupational
Safety and Health, "appears almost non-existent".[135]
82. It is clear that the HSE can only hope to scratch
the surface of the small firms sector. We were assured that "Ministers
and Commissioners are aware of the logistical difficulties of
regularly inspecting the existing 3.7 million SMEs and are considering
how best to raise awareness of health and safety in this particular
sector".[136]
Improving health and safety in small firms and for the self-employed
has therefore been adopted as a key part of the HSE's strategic
plan and the DETR's Strategic Review. Some of these good intentions
have already translated into practice: the Federation of Small
Businesses listed a number of recent positive developments which
have improved the service to, and regulation of, small firms.[137]
Despite this, the Federation and several other witnesses remain
concerned about the inadequacy of communication with small and
medium sized enterprises (SMEs).[138]
A consensus appears to be emerging that the only way to address
the problem and reach the majority of small firms or self-employed
is through an increased use of intermediary organisations. RoSPA
set out how this might work:
"With the new emphasis in government on
working in partnership with others, there is more chance that
HSE will be able to achieve its 'outreach', awareness raising
and compliance objectives by working 'with and through' 'intermediaries'.
Some of the principal players here include: main contractors and
clients; major local employers acting as 'good' neighbours; chambers
of commerce; business development bodies generally; trade associations;
insurers and brokers; trade unions; health and safety bodies such
as RoSPA; and local voluntary health and safety groups".[139]
Other suggestions for intermediary organisations
included business advisory services, banks and first stop shops.
Increased use of the Internet and of the supply chain (where larger
firms advise and help smaller suppliers) were also mentioned.
83. The HSE told us that it already uses intermediary
organisations—primarily trade associations, TECs and Business
Links—to disseminate information on health and safety law[140]
and that it anticipated using the Small Business Service for this
purpose when it was established. But RoSPA criticised this contact,
saying it was "sporadic and dependent on local conditions".[141]
In order to improve access to information across the country,
RoSPA felt there was a need to formalise arrangements and it advocated
the setting up of a new 'intermediaries unit'.
84. The Government's Strategic Review consultation
document suggests financial assistance for small firms as a possible
solution:
"A key aim of this consultation is to understand
better what stops small businesses from taking steps to improve
their management of health and safety ... We might, for instance,
offer financial incentives to help small firms implement better
health and safety systems. This may be through a grant scheme
to help pay consultancy fees."[142]
85. This problem may well increase over time as
the small firms sector grows, and we are pleased that the HSE
and the Government recognise the improved provision of health
and safety advice to the small firms and self-employed sector
as a priority. However, we believe that additional action is required.
We hope that improvements will be secured through the Small Business
Service. We are also drawn to the Government's proposal to provide
financial assistance to help small firms seek consultancy advice
on health and safety matters and recommend that the Department
draw up detailed proposals.
133 HSE03
and HSC Employee consultation and involvement in health and
safety, p9. NB: this figure differs for that quoted above
in paragraph 10 because it is for private sector employees only. Back
134 HSE25,
para 18 Back
135 HSE24 Back
136 HSE21 Back
137 These
include the provision of the HSE Infoline, improved guidance,
etc (HSE22, paragraphs 3.1 and 3.2) Back
138 HSE13,
HSE16 Back
139 HSE03 Back
140 Q307 Back
141 HSE03 Back
142 Revitalising
Health and Safety, para 36 Back
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