Interesting speech from David Cameron this weekend. “Enterprise is not just about markets, it’s about morals. We understand that enterprise is not just an economic good, it’s a social good too.”
Couldn’t agree more. And it’s not just words from the PM. The Government will be “rolling up our sleeves and doing everything possible to make it easier for people to start a business and grow a business.”
So he is embarking on a crusade to cut taxes, regulation and bureaucracy. Indeed he is going to “pull these (bureaucrats) into my office to argue this out myself.”
All this is necessary: but it is not sufficient.
Mr Cameron talks with pride of the 30000 + new firms started in January this year alone and identifies the Conservative Party with builders, electricians, roofers and retailers.
I am sure these 30000 new businesses will be grateful for every regulation which is scrapped. But that is not going to make the difference between success and failure, or between growth and stagnation. Our new electrician won’t fail because he doesn’t know which wire goes where. It will be because he’s got his pricing wrong, or can’t control his cash flow, or fails to devote enough time to sales and marketing.
So, Prime Minister, take away the obstacles by all means, but if we don’t find a way to provide people with the essential business skills they need to succeed, we will just be setting them up to fail.
And where’s the morality in that?
Spot on George, the economy needs as many start ups as possible, but we don’t want them failing early on due to the reasons you mention, or at 2/3 years because they have forgotten to retain enough cash to pay the taxman. I doubt the PM will be getting rid of taxation!
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There is no question that a government policy which encourages ‘enterprise for all’ is a policy which will fuel ‘business failures for most’, and at a time when the UK economy can ill afford it.
Even more so at a time when start up support, and by that we are referring to counselling (do Cameron or Prisk know what that means?), training, face-to-face assistance with research, preparation of a business plan etc are now no longer on the menu?
The indisputable facts are that up to 80% of new businesses who start up without counselling, advice and training are those who fail within months and in many cases within weeks, often dragging down suppliers, investors and family members with them.
But 80% of those who have received support and advice such as through a local enteprise agency or other accredited practitioners are still trading after three years.
It has to be said that it is reckless and irresponsible to encourage people to start up who have no place in business in the first place.
Colin Weatherspoon
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