Contrary to what Stephen Timms, the new minister for small business said in an interview in The Sunday Times – I wrote about it and asked if the aid for small business had been canceled – new research by the University of Sheffield shows alarmingly a fall in the business start-up rate.
While small businesses are known to contribute greatly to the U.K. economy it is quite surprising to note that the small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-businesses start-up rates have actually gone down in the last decade. However personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants rates remain as they were.
A report by the University of Sheffieldís Management School says that some government policies such as the closing of the Training and Enterprise Council (TEC) and increased red tape have curbed the entrepreneurial spirit.
Start-ups and new entrepreneurs need technical and financial support from the government and the report suggests that the government adopt a more focused approach when it comes to business start-ups. It says that less taxes and red tape and promotion of enterprise in schools would encourage start-ups.
“With increased levels of public sector employment, individuals may be less inclined to take risks. However, it is still largely the private sector that creates value and is the engine of growth and economic development,” remarked Dr. Huggins.
Entrepreneurs need to be well informed of the business infrastructure that is available today to help small and micro businesses a success. Business owners of start-ups need to use online IT solutions and bootstrapping techniques to their benefit so that they can give time and attention to the core productive activities of the business instead of getting distracted by peripheral processes such as accounting.
Some of the information going around is a little conflicting, here we know the start-up rate is going done, while at the same time the Government will have us believe the number of failures among start-ups is decreasing, are these trends correlated?