The ICAEW provides support for Lord Young’s Growing Your Business report, as follows:- Lord Young, the Prime Minister’s enterprise policy adviser, has published his second report on business growth, Growing Your Business, which includes a number of positive outcomes for the 1.5m UK businesses our members advise. Currently, around 400,000 new businesses start up in the UK every year, but one third of these cease trading within three years of starting. Lord Young’s report highlights the particular pressures these companies face include cash flow problems, issues accessing finance, help employing staff – particularly their first year – and the integration of modern technology into the business. But there is a tremendous entrepreneurial spirit in this country and business survival rates must be improved if that sentiment is to be transformed into a tangible economic asset for the country. Improved business advice for these firms will play a critical role in achieving this and Lord Young’s report rightly seeks to address this issue. His audience is small firms (those with less than 25 employees). The aim of his report and recommendations is to tackle the knowledge gap that many new businesses inevitably face when first starting out. These firms can often be perceived as “advice virgins” – those that struggle with overcoming the hurdles of effective business and finance planning. One of the flagship recommendations of the report is the introduction of Growth Vouchers announced in the 2013 Budget. The scheme has already secured £30 million in government funding over two years. The goal will be to develop a variety of innovative approaches to help businesses overcome the barriers that hold them back. I’m sure ICAEW Chartered Accountants have an important role to play here. The role of business advisers, such as Chartered Accountants, will ensure the ingenuity of British entrepreneurs is not stifled due to financial mismanagement or poor business planning. In the early stages of any business, it is vital that the owner is able to concentrate on developing their ideas to promote the company’s growth; this is more than achievable when teamed with sound business advice. https://gov.uk/government/publications/growing-your-business-a-report-on-growing-micro-businesses
Posted on: Sun, 16 Jun 2013 14:06:17 +0000
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