Small Business Suffering? The Solution Is Patience!

(New Nation Newspaprer, www.newnation.com)

December 2008
WITH THE onslaught of business programmes like Dragons’ Den and The Apprentice claiming to be the voice of UK enterprise, one really has to wonder if these images are helpful or damaging to real-time business situations.

Reports show many small business owners believe not enough is being done to help them to survive, let alone succeed in business, andthis has been made worse by the credit crunch.

The government seems powerless to enforce any measurable conditions or policies on the banks to help small businesses, even though they have been bailed out by the public purse during their time of crisis.

With an all party cry of ‘foul play’ towards the banks, it will be interesting to see how they respond to these new demands for fairer and moretransparent practices to increased lending over the next few months.Ampod Business Consulting and Training Services MD Yvonne Witter, who delivers training, networking events, business growth seminars and consultation to pre-start, micro and the SME business community on behalf of local authority regeneration departments, believes that the ‘small business owner does not get the respect as a major contributor to the economy that they deserve, especially from the banking system.’

‘The first problem is that banks define a successful business as one with potentially a two million pound plus turnover, with a large work force and will therefore, marginalise smaller, local enterprises,’ Yvonne says.

‘Secondly, while businesses remain categorised by the criteria set by the financial institutions, no one wants to talk to you and no one understands your business, so you are never in a position to have your demands met.’

It has been consistently more difficult for small business owners to raise capital because there is no connection between the small business owner and the banking sector.There remains a perception that if the bank is presented with a business plan that has the potential to make quick profits, they will be seen more favourably than a smaller business looking for funding of up to £10,000 to import a product, demand for which is unknown in the UK by the faceless banking sector.These businesses are met with scepticism and sidelined because of a lack of understanding about the cultural market conditions.

‘That is not to say that we should not be concerned with financial outputs but we have to look at the social and cultural, not just the financial drivers and motivators, for starting and running a business’ Yvonne continues. ‘Many small businesses do not fit into a mainstream model of enterprise, but combined, they contribute hugely to the GDP through tax payments and employment creat ion and community sustainability.’

Insurance firm RSA reported 470,000 small businesses have already ceased trading since the credit crunch began, but this has not dampened the desire for many to start and run a business. The current government intervention fuelled by the current global economic crisis sees multi-nationals falling by the wayside, which means there is hope and more opportunities for the small businessman to succeedas banks are now being forced to look at other areas of the small business sector to save the day.

‘There are many barriers which affect many different types of businesses, especially around micro finance opportunities and the high taxation of small businesses,’ Yvonne concludes.

‘But focus on what you are good at and never stop improving your product or service and reinvest into your business especially in the early years. Be patient!’