For example, if business owners were to list the things that are currently stopping them from recruiting, I can’t imagine that fears over the costs associated with potential claims over unfair dismissal, or redundancy payments and requests for flexible working, figure highly on their lists of obstacles.

Equally, if the ‘rights-for-shares’ scheme is  designed to encourage staff to feel that they ‘own’ their company and go above and beyond the call of duty to make sure it’s a success, it’s likely to miss that mark too. In fact, it’s more likely to engender distrust at best and a sense of blackmail at worst by saying that if you want a job, then you have to wave goodbye to some of your statutory rights on the off chance that your stake will be worth more than the paper it’s printed on.

Then there’s the additional admin costs for SMEs. For example, the costs associated with valuing the business and legal advice on contract changes for starters, which are likely to make it even less attractive for employers.

In fact, in terms of the government’s goal of reducing red tape for SMEs – in theory, it might, but in reality it would simply convert red tape into a new administrative burden. Hopefully the consultation will reveal a less-than-lukewarm welcome and, like so many of these ‘innovative’ ideas to encourage growth among
UK SMEs, this one will also find a quiet place in Whitehall to die.

Then perhaps SMEs can be left alone to focus on more practical ways to grow their business.

Darryl Danielli, Editor, PrintWeek