When the Coalition government first came into power, the new Prime Minster, David Cameron, made it clear that stimulating business and enterprise was one of their main objectives, alongside addressing the massive budget deficit.

Once the ‘Emergency Budget’ was announced that majority of feedback from the company formation and SME sector was positive – the reductions in Corporation Tax and National Insurance concessions were especially welcomed. However, many company formation owners felt that the budget didn’t go far enough and that it was again a reflection on how the government fails to listen to business owners. But according to the Prime Minister, that is about to change.
The government has established a body tasked with finding out from business owners what would make enterprise in the UK better. Once the committee devises a collective strategy, a paper detailing their plans will be published.

The Emergency Budget surprised many company formation owners, as it contained a number of provisions devised with the objective of helping regional businesses, namely the National Insurance reduction for companies outside of London on the first ten members of staff.

Therefore, it may come as a shock that David Cameron’s coalition government is now planning to scrap Regional Development Agencies. These agencies will be replaced by Local Enterprise Partnership.

Local Enterprise Partnership will still be committed to improving businesses and enterprise in their area however they will also become involved in broader areas such as town planning and housing.
Henry White, Chairman of the Lytham St Annes RDA, comments ; “ The original ethos of the RDA – to support local business, company formation and enterprise at a local level – lives on through the Local Enterprise Partnership scheme. These plans are still in the early stages.”

Earlier this year a report a report claimed that the two roles young people aspired to the most were becoming a Celebrity and being a Footballer. Consequently, over sixty per cent of girls aged between 13-16 identified former glamour model Katie Price as their main role model, while most boys of the same demographic said their role model was Manchester United star Wayne Rooney.

While the above report may have caused massive concern to most parents, they may be cheered up by more recent news that young adults aged between 16-20 now look up to entrepreneurs such as Lord Alan Sugar and Sir Richard Branson.

The survey, conducted by social networking site Bebo, found that over forty per cent of respondents aspired to become an entrepreneur.

Georgina Booth, spokesperson for social enterprise ‘Teach Your Children’ comments; “The findings of this report are much more positive than the previous one. It also reflects an emerging trend towards entrepreneurialism, which we have noticed among the young people we work with.”

The company formation and small business sector are consistently identified as being the ‘backbone of the UK’s economy’ by both politicians and economists alike. And, as David Cameron’s coalition are expected to announce even more cuts in public spending in their Emergency Budget on 22nd June, there has never been more pressure on the company formation and small business sector to become the main drivers of economic growth.

Therefore, it may come as a surprise to some people to learn that a number of recently formed companies are being over looked when it comes to new business opportunities as they are perceived to be to ‘unstable’ to do business with.

According to a report by the Forum of Small Business, over ten per cent of businesses have a policy of not doing business with companies that were formed under a year ago. While over twenty per cent said that a companies age is a major contributing factor as to weather they will do business with it or not.

Matthew Marsden, spokesperson for the FSB, comments ; “ While we appreciate that it is vital a company researches and assesses any company they are planning to do business with, especially in an economic downturn , we fear that the UK’s fragile economic recovery could be jeopardized if established businesses refrain from doing business with companies which have recently been formed.”

When you think of Dragon Den’s charismatic entrepreneur Peter Jones, many will recall his steely determination, funny put downs and even comedy socks. One of the roles you may not associate him with is ‘teacher’. But teaching is exactly what he plans to do at his National Enterprise Academy.

Jones made his millions across a number of verticals, including telecommunications, online, television and even food products – remember Leo Root’s infamous ‘Reggae, Reggae Sauce’. However, now he has decided to give something back to help the UK’s budding entrepreneurs.

As the number of young people are turning their back on the traditional root of school, university, job, is on the increase, many young people are looking for an alternative. While business studies is one of the most popular A-level courses, there is still no formal entrepreneurial qualification available.

Well not anymore. Peter Jones along with the NED, have now devised a qualification in ‘Business and Enterprise’. While the qualification will still incorporate many of the same elements of the traditional ‘Business Studies’ qualification – market research, business theory, strategic management and financial planning – it will also include a much stronger emphasis on the skills you need to become a successful entrepreneur.

Jones claims that the qualification will but students in real life business situations, which will prepare them for all the challenges a business owner faces each day. And in the current economic context, this qualification could be prove very useful indeed,

Four days before the big election debate, its seems that election fever is well and truly underway throughout all sectors apart from the company formation sector – if a recent report , conducted by the Forum of Private Enterprise, is to be believed.
The report asked over one thousand small business owners, if they felt that the election would have any major implications on them and their company and an overwhelming 55% said no. Even more concerning was the fact that 60% said that they don’t trust politicians and have little faith in the political system.

The findings of this report may come as quite a shock to the current administration, who has positioned much of their economic policies around supporting small business.

Anna Johnston, economic advisor to the FPE comments; “ While there has been much talk of the importance of small business to the UK’s economic recovery, from all political parties, small business owners have heard it all before. They have been on the front line of the recession and many have made huge personal and financial sacrifice to keep their companies a float.”

“What small business owners and people considering company formation want to see is some positive action and commitment to listening to their needs. Labour missed the opportunity to do this when they ignored the massive negativity surrounding the planned national insurance increases.”

The Prime Minister, along with his entire cabinet, has just announced that the general election will take place on 6th May 2010.

As Mr. Brown addressed the waiting media, he spoke, unaided by an autocue, of the importance of public services, the small business sector and the threat of a double dip recession.

This election will go down in history as being the first election, during which all the major political party leaders will take part in a televised debate. However, experts fear that in the context of the MP expenses scandal turnout may be the lowest this country has ever seen in modern times.

 When we say ‘Dragon’s Den’, what are the first things you think of? Peter Jones’s colourful socks, Theo Paphitits’s legendary put downs or Deborah Meaden’s icy demeanor? Well if finance management firm Angel’s Den has its way, the next time you think of Dragon’s Den, you will think of the next generation of female entrepreneurs.

According to a recent report, the number of female entrepreneurs investing in new businesses is dangerously low and this new initiative seeks to change all of that. It goal is to raise the number of female entrepreneurs investing in company formation from its current 7% per cent to an overwhelming 75% over the next four years.

Sarah Clooney, founding partner of business consultancy ‘S.C. Consultancy’, comments: ‘There is a massive disparity between the number of male entrepreneurs investing and mentoring new businesses and the number of female entrepreneurs. I think that this has had many negative consequences on British enterprise.”
‘In my opinion female entrepreneurs bring something different to the table when they invest in a company and their experience and insight can prove invaluable, especially if they have been involved with a company from the point of formation. If the number of female ‘Dragon’s’ increase I think it would encourage more women to go into business and form their own companies, which can only have a positive impact on the UK’s economy.”

Gordon Brown’s decision to appoint TV’s most feared boss, Lord Alan Sugar, as the government’s small business Tsar, was always going to be controversial. However, the situation was made infinitely worse when Sugar identified struggling businesses as ‘moaners’ at a conference in Manchester last year. Many people felt that Sugar was being insensitive and unsupportive of small businesses and his statement prompted calls for him to be – in his own words – FIRED!
However, in the wake of the recent budget, Gordon Brown has announced that Lord Sugar is to be an integral part of a new committee devise to help small businesses and advise the government on how to best to deal with giving them access to finance. 

In last week’s budget, Alistair Darling outlined the government’s new SBCA scheme, which gives small businesses the chance to appeal if their application for finance has been rejected. One of the primary objectives of this new task force will be to establish what powers the government should have in terms of giving small businesses access to finance and who should take the role as Credit Adjudicator.

Lord Sugar, who has previously praised the banks for dealing with small business finance applications in a ‘responsible’ and ‘professional manner’ – will be joined, by the head of Lloyds TSB Mr Fairey and interestingly the FSB chairman John Wright.
The government’s appointment of Mr Wright has been applauded by the majority of the SME sector, who historically have felt that the people making policy which affects small business were too far removed from it.

After a disappointing Christmas, many high street retailers were looking forward to a more successful January only for their hopes to be dashed as prospect customers stayed at home to avoid the arctic weather conditions. However, according to a report by the ONI, things finally seem to be looking up for the high street retailer.

According to the report sales revenue grew by almost three per cent last month which is the most sales have grown month on month since 2008.

Michelle Thompson, business advisor to the British Chamber of Commerce, comments: “These results are extremely positive and indicate that while the retail sector faced numerous challenges at the start of 2010 – increasing VAT and atrocious weather conditions – the British high street remain remarkably resilient.” 

Imogen Turner, founder of retro confectioners ‘Sweet Stuff’, comments: “Our initial business model was based upon and functioned around having a high street presence. When we first formed the company it was easier to get premises due to wide availability of shop space.  However, after trading for a few months, it became clear that the footfall just wasn’t there. Therefore we were forced to reevaluate our business model and consider a different route to market – online. Since developing the website, profits have increased and we are no poised to take advantage of improving market conditions.”
A spokesperson for the Federation of Small Business says: ‘ While these results are positive, from the feedback we receive it is clear to see that while consumers are more confident than they were this time last, they are still concerned about the economy and conservative in their spending”