Small Business Matters

Q&As with the Prime Minister - Part one: Tax and big business, credit easing, young entrepreneurs and more

As you may know, Prime Minister David Cameron recently visited the Intuit UK offices for a PM Direct event.  It was a great day and very informative.

For the benefit of those that didn't attend, we’re going to publish all the Q&As in a short video series. Here’s the first part.

HMRC and tax for small and large businesses

Business and finance as part of the school curriculum

Credit easing

SMEs winning government contracts

Investment funding for young entrepreneurs

What do you think of David Cameron’s comments? What would you like to have asked him?

 

Small business news round-up (20/1/12)

We search out key small business news stories and articles each week so you don’t have to, leaving you more time to spend on running your business.

Want to keep up with regular small business news, features and tips, why not subscribe to our blog by RSS or email?

UK may have slipped back into recession

An economic forecast from The Item Club has suggested that the UK has slipped back into recession. The think tank said GDP shrank in the final quarter of last year and would contract again in the current three-month period.It said that even if the eurozone problems are resolved, the UK economy would grow by just 0.2% in 2012.

The Item Club's chief economic adviser, Peter Spencer, told the BBC: "We are probably in technical recession.” However, the economic forecasting group said it did not envisage a full double dip recession.

Small business formations on the rise

The number of small business formations in the UK is increasing, new figures have shown.

According to Companies House data, 435,856 new businesses were registered in 2011, compared to 384,981 in 2010. In addition, registration volumes in the first two weeks of January 2012 are up by 12% compared to the same two weeks last year. 

The majority of these startups are tech firms taking advantage of growing demand for software, apps and online tools.

Find out why self-employment is booming, even in uncertain times.

2012: A small business wishlist

By Anthony Teasdale

It's not often the self-employed ask for help – after all, by our very nature we’re extremely self-reliant. But with an economic downturn that shows little sign pointing in the opposite direction, there's a few things that could benefit a significant number of us in the year ahead.

As someone who runs a small business myself, here's what I'd like to see take hold in the coming months…

Small businesses working together 

Five years ago, banks were queuing up to give small business loans or extend their overdrafts, confident that they’d get their money back – and more – soon enough. Today the situation is very different, with loans increasingly difficult to obtain. In Coventry, a group of business meet once a month to talk with local banks about how they can get finance – and it’s the numbers of people joining forces that gets the banks to listen. Ask around your area and see if anyone else wants to do the same. 

New year, new start – tips for a successful 2012

Firstly we’d like to take this opportunity to wish all our readers a very happy new year from the SmallBizMatters team. Here’s to a great 2012.

Today’s post is by Clive Birnie, managing director of Severn Delta, the company behind the Sarah Smith cleaning products.

So here we go, heading into 2012.  This time of year seems to lead inevitably to a mental audit.  I can’t do much about your willpower for your New Year’s diet but here are my suggestions for good New Year’s resolutions and ways to improve your business this year.

Going with the crowd: What is crowdfunding and how could it work for you?

This guest post is by Luke Lang of Crowdcube. He gives the lowdown on crowdfunding, which has been hailed as “the next big thing” by a number of business commentators.

The task of securing investment is notoriously difficult for any public, private or social enterprise.  Few people who submit business plans to angel investors, venture capitalists or similar sources of funding are successful in raising the money they seek.

For social enterprises, where profit maximisation is not the main objective, this is often a far greater challenge. Angel investors and venture capitalists remain elusive to all but a few. Banks tend to adopt a risk-averse approach to lending and the Government’s recent agreement will not necessarily make it any easier. Demand for finance continues to outstrip supply.

Small business focus for Number 10

If recent news stories are anything to go by it seems the small business community is firmly on the government agenda of late. Not only did it announce plans this month to expand the scope of its proposed New Enterprise Allowance (NEA) and revamp the Business Link advice service, but most recently it has been haggling with major bank bosses to commit to up to £200bn of lending to small businesses this year.

Code named ‘Project Merlin’, the government is definitely taking a step in the right direction in supporting entrepreneurs and strengthening the backbone of small business Britain. Our research shows that more than a third (34%) of Brits want to, or have already started their own business, up from 32% last year. However, at the same time, the economic recovery is denting their entrepreneurial confidence. These initiatives from Number 10 Downing Street are just the impetus budding entrepreneurs need to realise their goals.

Although the government is beginning to see how vital small businesses are to the economic growth of the country, these firms need further help, especially since talks between the Treasury and the major UK lenders have broken down.

Therefore, while government are heading the right way there is clearly still more to do to encourage the country’s entrepreneurial spirit. Now more than ever, small business owners need the necessary support to enable them to take advantage of the economic recovery and succeed.

Small businesses go under from lack of loans

The Daily Mail  revealed the shocking number of small businesses that go into bankruptcy each day currently stands at 45! The latest figures from the Insolvency Service showed that the number of companies put into administration actually rose by 0.5 per cent between April and June this year. This is particularly eye opening as four major high street banks reported they were back in profit to the tune of £15billion, giving a clear indication of the high price small businesses are paying for the banks’ oversight of their financial situation over the past 18 months.

This news comes as the UK government and finance experts told bankers they needed to start lending again to stimulate economic recovery. According to several reports, banks lending terms are too ominous, at which the banks have responded that the demand for lending from small businesses is falling and that they must avoid a repeat of the crisis by only lending money to customers who can repay it.

Despite this less than satisfactory situation, there is some better news for small business owners; the chief executives of the six biggest banks in the UK are setting up a taskforce to help tackle the credit drought. The taskforce will be co-ordinated by the British Bankers Association and will be reporting on their progress before September next year.

With start ups and small businesses widely recognised as the life blood of the British economy it’s good to see that pressure is continuing to mount in support of small businesses in the UK, and hopefully all this publicity will be the trigger needed to get banks lending again!

Let us know what you think of the lending situation and the new taskforce that’s been set up… have you had any experiences with bank loans? What do you hope the taskforce will deliver for UK small businesses?

Budget 2010: What’s in store for small businesses?

The budget date is set for Wednesday 24th and we’re all wondering what strategies Darling will have in store to reduce the growing £178bn fiscal deficit. Having experienced some of the most turbulent times on record, small business owners will be calling for the Chancellor to restore confidence in the UK economy and asking for the needs of small businesses to be taken into immediate account.

According to research conducted by YouGov and commissioned by Intuit, the driving force behind Small Business Britain, over 45% of British small business owners want banks to offer better rates for their small business customers, 35% want interest cuts to be passed on in full and 40% believe that a reduction in employers’ national insurance contributions are essential.

However, while these are the issues that matter the most to small businesses, many are questioning whether Darling will actually be able to address them with the General Election looming:

“We need a clear plan from government on spending and taxes, but this will only be clear after the election.”  (Julian Lewis, MD of Positive Computing)

This month’s budget looks set to be an interesting day, especially as the nation starts to look beyond the recession.  We’ll definitely be tuning in on budget day and reporting on the issues that concern UK small businesses, so be sure to check out the blog.

If you’re a small business owner with a view on the Budget why not get involved with our discussion at www.smallbusinessbritain.co.uk

Small Business Britain: On the airwaves!

As part our Small Business Britain campaign, our managing director Pernille Bruun-Jensen, took to the airwaves to discuss the importance of UK small businesses in the run up to the election.

She chatted with more than 20 radio stations around the UK, sharing the findings of our Small Business Britain survey, as well as some of the key tips that came from the research.

Couldn’t get to the radio in time? Click on the podcast below to hear Pernille’s interview with BBC Radio Northampton (104.2-103.6FM).

BBC Northampton

 

Some of the advice that Pernille shared from small business owners around the UK included:

Be heard! Use channels such as Small Business Britain to make sure your voice is heard, and to call on the government, elected bodies, banks and the wider business community to support your success and prosperity.

Make it personal – According to our research, 84% of small businesses believe that their ability to provide a more personal touch with customers is a key advantage. Start-ups and small companies can show a fresher, newer approach and take advantage of their flexibility.

Keep on top of accounts – Awareness of how much is being spent and for what is important. Our research showed that 85% of small businesses felt the best way to manage cash flow was to always keep accounts up-to-date.

Don’t be late – Most small businesses have experienced difficulty with timely customer payments. Put simply, if you don’t get paid, you won’t be in business for long. Our research showed that the number one way to avoid late payments is to set up clear payment terms at an early stage (48%).

If you want to know more about Small Business Britain or have some comments on the Charter, please get involved and post your thoughts on our discussion boards.

Small Business Britain focuses on customer service

It is now three days since we launched our Small Business Britain Charter based on a YouGov survey of over 1,000 small businesses in Britain, and so far the feedback has been great! As well as calling on UK Government and Banks the Small Business Britain Charter also discusses how the Small Businesses Britain community can help itself to prosper in 2010 and beyond.

One area that particularly resonated with the YouGov respondents was the importance of good customer service:

• 84% of the sample recognised good customer service as a key contributor to the success of attracting   new and keeping existing customers
• 73% felt that that their greater emphasis on customer service was one of the major advantages they had over their larger rivals
• 84% backed the claim that a small business’s ability to provide a more personal touch with customer was a key advantage over their large competitors