Barriers to Enterprise
The success or failure of a new business is often dependent on overcoming a series of potential barriers, such as securing sufficient financial backing, obtaining adequate and appropriate guidance and training, etc.
Start-Up Tracker by Start-up Britain estimates close to one million new enterprises were launched in the UK from 2011 to 2013. Micro and small businesses have a substantial growth rate and our experience indicates that the main barriers to their successful enterprise creation are difficulties with financing their business plans, compounded by the cautious attitudes of banks towards new business owners. In addition, small and micro business owners are unable to fulfil their potential – and going out of business – because they are denied access to those factors that promote long-term success, whilst being under pressure to achieve short-term goals/quick results.
Business mentors and access to more specific advice are cited as affording the greatest benefit to potential and new business owners, in some ways fulfilling the role of the old-style bank manager.
In summary, start-ups and new enterprises require the following enablers to create, learn, thrive and succeed:
- Provide mentoring support at conceptual stage through to obtaining funding and successful launch of product / service
- Training provided to entrepreneur of what it really means to be ‘finance ready’
- Help with sign-posting and access to finance – both debt and equity funding
- Create an environment conducive to business growth i.e. business parks, tech-hubs
- Assistance in the form of subsidised/free office facilities, initial mentoring, peer-group networks
- Training in developing business plans and pitching to angels
- Financial planning and advice on company structuring, R&D tax credits
- Tax incentives for those who compete globally
- Relentless removal of red tape and simplification of business processes
- Encouraging and developing youth of today to be the captains of tomorrow
Local government can also help directly by:
- Creating a local culture that encourages innovation, even at the risk of failure
- Allocating a budget to support innovation initiatives, e.g. start-up-grants
- Rewarding innovation with media recognition or other non-financial incentives
- Rewarding innovation by providing financial incentives, e.g. lower business rates
- Leading by example by local participation and ownership of the innovation process
- Providing systems and tools for fostering enterprise innovation
Contact MIERA Consulting and start removing the barriers to enterprise!
Visit our website www.mieraconsulting.com or telephone 0208 634 5200 now.