I see Tim Campbell, ex- Apprentice who now promotes entrepreneurship through his Bright Ideas Trust, has called in the FT for the government to axe business support spending that is merely putting ‘bums on seats’ instead of helping viable start-up operation. He goes on to make the extraordinary statement that ‘there is no point telling me 400 businesses were started last year if 399 collapsed the next month.’
Actually I agree with that, but of course it doesn’t reflect the real world of business support in which we all live.
Firstly, the last thing we do is set people up to fail. Some of the best work we do is counselling people that the entrepreneurship route is not for them, and pushing them back into the world of employment, or of enhanced skills. No credit for that and certainly no money, but a valuable service which avoids a lot of heartache.
And secondly, we routinely demonstrate survival rates well in excess of 70%. The New Entrepreneur Scholarship programme had externally audited survival rates of 76% after five years. These are the sort of results that can be achieved – and are achieved by NFEA members - through professional business support. And those people are supporting themselves and their families as well as contributing to the economy.
I just wonder if we are starting to tread that dangerous path marked “picking winners.” I defy anyone to identify future stars at the start-up stage. We all recognise that some people are more ambitious than others, some have more skills than others and others are better funded. But the trouble with picking winners is that it is extraordinarily difficult to pick them, and extraordinarily easy to ignore them at crucial stages in their development. Much better to cast our net widely, and support all the start-ups which have a good chance of success. The Microsofts and Googles of the future will soon make themselves very obvious.
Incidentally, here is a straw in the wind which tells us something. Our Let’s Talk seminars, run with Barclays, are now in their fourth year and take place all over the country. As with all free events, no shows are an occupational hazard, but since Christmas we are finding that the rate of no shows has halved. I’d like to think this was because word was getting out about how good these events are (which is true) but I suspect the state of the economy is making the potential start-ups coming through our doors even more motivated.
Interesting blog post George. Both you and Tim make interesting points.
Sadly, I continually hear from the members of my website that much of the support offered by the likes of Business Link seems more about box ticking than real, practical support. Admittedly, efforts have recently been made to change that through the government’s latest attempts at streamlining the system. That is to be welcomed but it must be remembered that through streamlining some support schemes could ironically become too generic and fail to deal with the needs of particular entrepreneurs in particular areas.
I do agree with you that we shouldn’t fall into the trap of ‘picking winners’. Anyone who decides to go it alone needs to be supported whether or not their company becomes the next Google.
I’m not surprised that the Let’s Talk seminars have seen increased attention over recent months. We have also seen an uplift in members accessing the free business advice we provide.
One major positive of the recession could be a significant rise in the number of UK entrepreneurs. However, it is essential that the attention being given to them now continues when the economy recovers.
Dan Martin
Editor, BusinessZone.co.uk