It was depressing to see Business Secretary Vince Cable quoted as
saying that the economy was in worse shape than under the previous
administration and that a double-dip recession was a distinct
possibility.
While the opposition immediately seized upon his comments, it could
be argued that this was rather hypocritical as the current debt crisis
and poor bank regulation were a direct result of their own policies.
The feeling of most entrepreneurs is that government is essentially
powerless to influence the economy at the grass-roots level. Rather than
decreasing regulation as they always promise, any intervention on their
part, however well meaning, always seems to create even more obstacles
to enterprise.
The solution to our economic challenges is clear. Rather than sit on
our hands and complain, now is the time for entrepreneurs to get out
there and sell our way out of the recession, bringing the rest of the
UK's economy along in our wake.
But this will need to be the UK's real-life entrepreneurs, not the
get-rich-quick chancers we see in the media, an image actively fostered
by offensive and unrepresentative programmes such as Dragons’
Den and The Apprentice.
And while it is always a joy to inspire young people into a path of
entrepreneurship, this is a long-term policy rather than the immediate
help that the UK's economy needs.
Real-life entrepreneurs first felt the effects of the recession in
2008. Those that have survived followed the best practice that all
businesses should follow. This includes the banks, which are always
quick to criticise small businesses for their lack of planning.
Successful entrepreneurship involves reducing risk wherever possible
by concentrating on the core business of the organisation and, wherever
possible, finding the most profitable niche or vertical market. While
cost-savings are important, the main focus should be on generating
revenue and reducing the length of the sales cycle.
Rather than chasing brand new customers who promise big orders from
exotic locations, the place to find immediate revenue is always your
existing customers. They may be equally affected by the recession but
willing to discuss mutually beneficial outcomes with people they trust.
It is also a myth that there is no money out there. This is the
strong message I have received across the spectrum of industry, from
private equity and venture capital companies, angel investors and those
companies who have managed to grow successfully in the last few years.
You only need to scan the regularly published lists of fast-growth
companies to see which industries have thrived in a recession; all of
these companies and others like them have money to spend with the right
suppliers.
I am also determined to do my bit to help the UK's entrepreneurs.
Starting on November 1st in Essex, I will be presenting at twelve
branches of the Federation For Small Businesses (FSB), events that are
open to everyone.
The FSB recently launched a new initiative “Championing The UK's Real
Life Entrepreneurs”, which focuses on the key issues facing its
members. These include increasing the routes to finance, improving cash
flow, adopting a new approach to regulation, reducing and simplifying
business tax, incentivising job creation and opening up export markets.
The FSB's Head of Policy and Public Affairs, Andrew Cave explained to
me that the campaign is designed to galvanise the small businesses in
the UK to take a forward-looking and positive attitude towards the
economy by increasing their revenue and taking on staff, especially the
increasing number of unemployed young people.
He argues strongly that the opportunities and skilled, hard-working people are out there; all it needs is a positive attitude.
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