September 19, 2005
Eighty Eight Per Cent Of UK Distressed Businesses Are Ignorant About New Help Plan
Almost 90 per cent of UK business owners are ignorant of government legislation designed to save companies in distress, according to a new survey carried out by PWC. The professional services firm.
The Enterprise Act, designed to encourage a more forgiving culture for troubled companies, makes the priotity of administrators to rescue businesses rather than selling their assets.
Companies no longer need to hire a barrister but can send a fax to the High Court.
However, PWC's survey of 501 business managers found that just 12 per cent were aware of the rule change and how it could help companies in difficulty. Among companies with less than £100,000, fewer than one in 10 managers had heard of the Enterprise Act. Of those companies that were aware of the legislation, 25 per cent felt the new rules would not help.
David
Small Business Resource
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March 23, 2005
Small Business: Now That The Chancellor's Red Book Has Been Laid To Rest
It should come as no surprise to small business owners that While the Chancellor had talked much about cutting red tape prior to the budget many of the measures announced in the budget had already been mentioned in previous budgets or were merely proposals for consideration.
On the plus side for small businesses was the acceptance by Gordon Brown of the finding of the Hampton review into red tape, which will reduce the number of agencies that carry out small businesses inspections from 35 to 9.
In real terms, Gordon Brown claim that this will result in 1m fewer inspections.
David Brown of the Federation of small business said, "Hampton recommendation is an important start in tackling the burden of compliance faced by small businesses".
The Association of Chartered Certified Accountants (ACCA) also welcomed Hampton recommendation but they warned that small businesses would only see the benefits in the long term, as the initial cost of change will be substantial.
Gordon Brown also stated in the budget that small businesses would no longer have to file separate VAT and company tax return and that this was out for consultation to the Inland Revenue and Custom And Excise.
supporting this initiative, the Chancellor plans to create a combined Inland Revenue and Customs department as a single point of contact for small businesses.
The general belief is that this initiative is a long way off from being a reality. A view supported by David Bishop and Mike Warburton, tax partner in Grant Thornton who says "even if it happens, it could be problematic for small businesses that don't have an expert on site in direct and indirect taxation.
Gordon Brown introduced a timetable for the introduction of cutting red tape surrounding working tax credits. The Inland Revenue rather than employers will made direct payments. This will reduce payroll burdens faced by small business owners.
The Chancellor also announced proposals to extend research and development tax credits available to small business but he gave no detail about how this would work.
At present the process of claiming research and development tax credit is cumbersome so this should make it easier for small businesses and business generally to get the relief.
This sums up the proposals announced by the Chancellor in the budget. The overall feeling among small businesses was that the budget was neutral and that this was all that could be hoped for.
David
Small Business Resource
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February 13, 2005
Why Women Are Leading The Way As Small Business Entrepreneurs
Women in rural areas of the north west of UK are leading the way as small business entrepreneurs. This is according to recent research and statement by Women And Equality Minister, Jackie Smith.
According to the minister, "If women started businesses at the same rate as men we would have 150,000 extra start ups in the UK.
In terms of contribution to UK economy, rural female entrepreneurs are helping to generate £50 and £70 billion a year.
But barriers remain that prevents more women from following in the footsteps of successful women entrepreneurs, such as access to finance, business support, help with confidence and self esteem, rural isolation, not being taken seriously, and more role models.
According to "Global Entrepreneurship Monitor" report from London Business School. Female entrepreneurship in the UK rose to 3.9% in 2004.
According to "Gemconsulting" report, women amount to 5.1% of total entrepreneurial activity in the UK.
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January 24, 2005
If You're A Small Business Owner Here’s Why You Should Vet Small Business Consultants Before Hiring Them or Else You Could Find Your Fingers Being Bitten Off
It’s easy for anyone to call themselves consultant because the term could mean almost anything, from “pig breeding consultant” to management consultant. If fact a consultant does not have to be qualified by having passed recognised examinations set by a recognised or approved body. For this reason if you want good advice from someone calling themselves consultant it’s vital to check his / her credentials.
Many small business owners have had to pay the price of engaging consultants who simply lacked the skills to deliver what they boasted. In some cases consultant were dishonest to the point of stealing funds that were given as grant to small businesses.
Take Donal Kelly, the managing director of Donegal-based Seamless Aluminum by not vetting consultants his business has suffered. He’s had consultants advising him on tax and grants but they did not vet them and on one occasion, a consultant drew grant money awarded to his firm but never passed it on.
According to latest DTI statements, The DTI said that the number of small and medium-sized businesses in the UK has grown by 300,000 in the past seven years and employment in small business has increased by 600,000.
The UK is leading Europe in its level of entrepreneurial activity, with women at the forefront of a national surge to start-up business on their own.
Rates for the self-employed have rocketed in Britain over a three year-period, with those wanting to start-up a company rising from 7.9 per cent in 2002 to 9.5 in 2004.
See freelance UK
With this surge in creation of small businesses many small business entrepreneurs, will be looking for business ideas and advice. Hiring consultants from the top consultancies, like KPMG is cost prohibitive for 99% of small businesses. As a small business owner you’re well advised to hire proven business advisor's with a track record of delivery back up by guarantee of delivery.
See Sunday Times small business advice article.
At Small Business Resource I recognised this many years ago that’s why we guarantee to deliver what we promise.
David
Small Business Resource
Posted by David at 10:20 PM | Comments (0) | TrackBack
