In a report, due to be published next month, from the European School of Management – ESM, it is reported that there has been a marked decline in small business activity in the the UK under Gordon Brown.
In the last decade when most peoples idea of small business centered around reality shows, small business has suffered due to a flawed understanding of small business issues and a “reality show“ like incompetence of the government departments involved.
Here are some of the reported findings of the ESM‘s team:
• a decline from 29% in 1996 to 16% in 2006 of small businesses reaching a £1 Mio. turnover within five years of start-up;
• only 6.8% have a turnover of £7 Mio after five years, much lower than the 16% European average.
Professor Davide Sola, the report’s author and dean of the ESM said:
“The tax system for small businesses in the UK is becoming less competitive. the changes to capital gains tax in the 2007 Pre-Budget Report will further undermine the attractiveness of the Uk as a place to grow a business. The implications for investment and job creation could be very damaging.“
The ESM’s report covers a time period of ten years on the quality and speed of small business growth, as it is said to be a better guide of entrepreneurship, than the number of companies starting. A third of all business start-ups fail in the first three years and only 10 per cent achieve high growth.
Given the fact that almost 70 per cent of all small business do not wish to grow, due to the red-tape burden in the UK, any changes to this trend will be hard to come by – especially under this government!
The report was commissioned by the shadow Chancellor George Osborne, so let’s hope the next government will correct some of the big mistakes made in the past ten years. I’m allowed to dream, aren’t I? ST.