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?

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 (20/1/12)

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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. 

Business trend predictions for 2012

2011 has been quite a year, both in business and beyond – from the summer riots, to banking fraud, and companies and countries alike going to the wall.

In cheery news, it has been mooted that ‘2012 will be the end of the world’. However, David Bowler and Julia Payne,  co-founders of business consultancy Incisive Edge,  believe it will only be the end of the world for those entrenched businesses which choose to hide.

They comment: “Those businesses which simply work to protect the balance sheet, and fail to invest in growth in a brave new world, will not succeed.”

Here, Payne and Bowler offer their predictions for business trends in 2012:

How to get paid more as a freelancer: Four top tips

Today is National Freelancers Day and one of the key aspects of successful freelancing is setting a rate which is profitable for you but still brings in the work. These tips should help.

The freelance life can be great. Without a boss to answer to or an alarm clock disturbing your sleep pattern, if you’re well organised you can find a real life/work balance – one that’s hopefully weighted to the ‘life’ part of the equation.

However, one thing all freelancers should think about is gauging how much they should charge for the services they provide and how to go about getting more for them.

Size doesn’t matter in the global marketplace

This post is written by Linda Kozlowski, Director of Global Marketing and Customer Experience for Alibaba.com. 

With many businesses feeling the impact of the current economic uncertainty, it’s no surprise that the outlook for 2012 is less than rosy. Without a positive change in economic conditions, many small and medium businesses, particularly those that operate with small teams and limited resources, could cease trading altogether. More than ever, reducing operating costs and driving revenues are essential to survival. It will be the savvy businesses who are willing to adapt their approach that will come out on top.  

How to get the best from your accountant – advice from an accountant

By Michael Rubinstein

Hello, I am Michael Rubinstein  and I am a Chartered Accountant practising in Manchester. I am going to tell you how best to work with your accountant to benefit from their skills, experience and training to help you get the best from your business.

Not too long ago I was talking with a new client, explaining how, if he changed his production and selling methods, he could earn more money and have more time off. He was amazed; all he had expected from his accountant was to produce the annual accounts and to tell him how much tax to pay. Whilst so many other businesses are suffering he managed to increase his turnover and profits (leaving us with the extra work to do of calculating how best to mitigate his tax bill).

Save money: Run your business like it’s the '70s

 

In times of economic hardship, small businesses have to do everything they can to reduce costs. But instead of copying the philosophies of the latest hot business guru, why not try using 1970s Britain as your inspiration? You’ll be in the black quicker than you can say, “Dad, the telly’s gone off again”.

Could female entrepreneurs hold the key to our economic recovery?

Last year we polled over 2000 people to investigate the entrepreneurial appetite of Brits, and the results were very encouraging. So this year, we decided to dig a little deeper and look at different types of entrepreneurs around the country. Our latest research focused on women in business, and it found that female entrepreneurs could give a much needed boost to the UK economy.

Despite the gloomy economic conditions, one in five women business owners surveyed (22%), say they plan to take on more staff in the next 12 months. With an estimated 620,000 majority women owned small business in the UK this would mean more than 360,000 new jobs created over the next 12 months!

Our survey also revealed a strong entrepreneurial appetite from women who are not yet running their own business. Almost half (49%) of all women surveyed were interested in setting up a business in the future, and 23% of prospective female business owners are planning to launch their new venture in the next year.

The top motivations for women to set up a business were flexible working hours (57%), being their own boss (48%) and working from home (45%). There is no perfect time in life to start up a business – almost half of female entrepreneurs (47%) say you can start anytime as long as you have a great business idea.

Women clearly have an important role to play in the UK’s recovery, but we should do more to support and encourage female entrepreneurship. The fact is while almost half of women in the UK say they would like to run their own business, only about 8% actually do. With a strong desire to be their own boss, and to fit work around their busy lives, these prospective entrepreneurs could hold the key to Britain’s successful economic future.

 "I set up my company two years ago because I was looking for a challenge beyond being a stay-at-home mum, and my biggest motivation was the flexible working hours and the freedom to manage my own time."

Are you a female business owner or do you know someone who is? Do you think women make great business owners? Feel free to share your experiences and advice below.