Small Business Matters

New businesses and 'silver startups' on the rise

Startup businesses enjoyed a resurgence in 2011, according to the annual Simply Business Start-up Index, which shows the first rise in annual growth since the start of the recession in 2008. 

The research finds:

• A 3% increase in UK startups in 2011
• A 19% increase in businesses started by retirement-age entrepreneurs
• Entrepreneurship no longer confined to London with strong regional growth reported

Jason Stockwood, CEO of Simply Business, commented: “Our results suggest that Government initiatives such as Start-up Britain have inspired would-be entrepreneurs to make their business dreams a reality. It’s now crucial that this support and encouragement continues into 2012 so these fledgling businesses can fulfil their potential.”

Here are the findings as an infographic:

Jason Stockwood added: “With ever increasing life expectancy and more flexibility around retirement, it’s interesting that those in the 60 plus age bracket are considering a second career as an entrepreneur. Starting a business can be hugely rewarding at any age and those with so much experience behind them are in a fantastic position to make it a success.

“It is also encouraging to see London is no longer monopolising entrepreneurism and other regions are giving the capital a run for its money. This trend will hopefully continue as aspiring business owners see success stories springing up around them.”

What do you think? Do you find the results encouraging? Are you surprised by any of the findings?

Small business news round-up (4/2/12)

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?

HMRC records checks campaign halted

HMRC has announced that its business records checks scheme  is on hold and will be relaunched with a “fresh approach” early in the next financial year, following a review.

The review, which included discussions of the pilot programme with trade and professional bodies’ representatives, recommended that the checks are more targeted in future, linking to available education and support.

Find out more

Builders most likely to make mistakes on tax returns

Those in the construction industry are seen as the most likely to provide incorrect information on their tax returns, according to a survey of accountants.

In a poll by Bloomsbury Professional, a third of those questioned regarded builders as high risk due to frequent use of cash payments and poor bookkeeping.

Find out more

More than one million will face tax fine, says HMRC

Just over one million taxpayers face a penalty of £100 for failing to submit their self-assessment tax returns on time. The figure of 1.1 million is the lowest since online filing first started, and compares with 1.4 million last year and 1.6 million the year before.

A peep into freelancing [Infographic]

Are you considering freelancing? You're probably wondering what it's really like and what's involved. PolicyBee has done some useful research which should give you a bit more of an insight into freelance life. 

The research was carried out at the end of last year amongst 2,000 freelancers. 

Infographic by PolicyBee Insurance

Are you thinking of becoming a freelancer? What kind of things would you like to know more about?

Small business news round-up (28/1/12)

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?

HMRC Self Assessment returns – two more days to file and pay

HMRC has agreed that customers who can’t get through to HMRC's call centres on 31 January because of strike action will have a couple more days to submit their returns. Late penalties will not be imposed for people who file their Self Assessment returns on 1 and 2 February, the HMRC has said.

The SA deadline remains midnight on 31 January. However, HMRC will treat all returns that come in by midnight on 2 February as though they were submitted by 31 January. No one will have to pay interest on payments due on 31 January that are paid on 1 or 2 February.

Find out more

Set up your business in a Government department, says Cameron

Entrepreneurs will be allowed to set up their companies in empty Government offices, David Cameron has said this week.

Identify opportunities in challenges and other ways small businesses can learn from TOTs

Henley Business School recently identified a new breed of small British business. These companies have been named TOTs, which stands for firms that are Twelve months old, have an Optimistic outlook on business and are Technologically-minded. 

The research suggests TOTs could add £360 million to the UK economy and create over 70,000 new jobs over the next 12 months.

The T-Mobile 12 Study was commissioned by the mobile communications company to investigate traits displayed by successful businesses that survive their first 12 months. 

Professor Dominic Swords, from Henley Business School, shares his top tips on how small businesses can learn from the TOTs, remain optimistic during economically uncertain times and identify opportunities in challenges that may arise.

Small business news round-up (13/1/12)

We search out key small business news stories 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?

Late payment problems not letting up

New research out recently revealed that small businesses are facing a continued and growing problem with late payments. The research from Bacs found that late payments have reached an “all-time high” and the outstanding amount owed to small firms by larger companies now stands at £33.6 billion.

Are you finding this a growing problem? Read our tips on managing late payments

Small business owners would risk homes to stay afloat

According to a new study, over one in ten small business owners would risk losing their home by putting it up for loan collateral if they were unable to secure finance in the face of financial difficulties such as staff wages or cash flow issues. 

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. 

Financial fitness test finds entrepreneurs are in need of a workout

In lean times, businesses need to be on top of their game, but when testing the financial fitness of 155 entrepreneurs recently, Intuit, the makers of QuickBooks accounting software, found many in dire need of a workout. 

Intuit tested entrepreneurs thinking about starting or already running a business and found many are:

• Without a plan. The research found that 20% of aspiring entrepreneurs and 15% of existing business owners do not have a plan or expect to have one by the time they start their business.
  
  
• Baffled by accounting speak. Entrepreneurs aren’t always financial experts and many find even basic accounting terms confusing. Almost half (47%) do not know the correct definition of gross profit and 31% do not know what turnover means. 19% of respondents do not know what margin means and 16% do not know the correct definition of cash flow.
  
  
• Confused by compliance. Only 61% are aware that the VAT threshold is £73,000 and more than one in five (23%) do not know the correct definition of VAT taxable turnover. Tracking, recording and reporting VAT is one of the biggest headaches for small businesses and getting it wrong can have a negative impact on cash flow and leave a business vulnerable to a penalty from the HMRC.

Finger on the [Business] Pulse

The 2009 Business Pulse research launched at this year’s Small Business Week (19 – 23 October) has uncovered some interesting statistics and trends from Small Business Britain.

One point that stood out to us was that 48% of small business owners said that advice is essential to advancing their business. The fact that many small business owners are calling out for access to better advice and resources is something that we have blogged about previously and that we feel very strongly about. Initiatives like Small Business Week are a good chance to shout about these issues, and to make sure that small businesses are getting the support they need.

The small business owners surveyed were also largely optimistic about the future. 62% said that they expected to see a significant growth in profit within the next 18 months, primarily through increased marketing spend and investment in technology. Interestingly, it was the businesses who want to be at the forefront of technology who were also the ones who said that they have been least impacted by the recession and were most optimistic about the upturn.