Lord Young published his Growing
Your Business - A report on Growing Micro Businesses on Monday and it's a
good read with some insightful views. I've spent some time with Lord Young as
part of my involvement on the board of the Start-Up Loans Company, and I never
cease to be amazed at his enthusiasm and energy. I'd love to think I will be so
sprightly when I am 81!
The report can be found at the link above
and three things strike me in particular. Firstly, the proposals regarding
public sector procurement starting on page 19. Whatever government might say,
or intend, the reality is that many small businesses find procuring for public
sector contracts bureaucratic and daunting. Their perception is that large organisations
will be favoured in the process and - whether they're right or wrong - we all
know that perception is, for them, reality. The removal of the PQQ system for
contracts below €200,000 makes very good sense, as does the 'single passport'
proposal allowing pre-qualification data to be entered once and then - after
approval by one authority - apply to all bids across multiple authorities.
Secondly, the recognition that "Few
small firms understand the importance of cash flow particularly when applying
for a first bank loan." I guess the fact that the ICM/BIS Managing
Cashflow Guides have been downloaded more than 450,000 times since they were
launched in 2008 and are seeing regular and substantial monthly increases
reinforces this point.
Thirdly, the recommendation that the upper
age restriction be removed from the Start-Up Loans scheme. Originally set at
18-24, then in January changed to 18-30, this latest suggestion would allow
anyone to benefit from what has been a hugely successful initiative. Almost 4,000
businesses have been started, receiving loans totalling nearly £20m, and the
creation of a private company to manage the scheme is a radical and
innovative alternative to previous
government propositions. The businesses receiving funding, support and
mentoring have the chance of a real kick-start towards their entrepreneurial
vision and aspirations. At the start of 2012, micro businesses (0-9 employees)
accounted for 32% of private sector employment and 20% of private sector
turnover. Growing the contribution of such businesses can only be good news for
the economy and add to the increased confidence that is starting to emerge.
The report's 54 pages contain much more,
including the proposal for Growth Vouchers encouraging businesses to obtain
support and advice, and just as I am proud to have been engaged on the Start-Up
Loans Company Board since its inception, I am also proud that the ICM is listed
as one of the organisations with which Lord Young engaged in the writing of the
report.
Finally, it would be remiss of me not to
mention the fact that the Institute of Credit Management won another PR award
last week. The press release announcing the win can be found here and I'm delighted at the recognition
of what we, together with our PR agency Gravity London, have achieved in
raising the profile of professional credit managers and the vital role they
play in supporting the economic recovery.
Next week, I'll be standing down from my
blog-writing responsibility for a week and we'll be publishing a guest blog by
Professor Russel Griggs OBE who is Lead reviewer
of the banks appeals processes and Chair of the Scottish Government’s
Regulatory Review Group ahead
of the publication of his second annual report in June.
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