Onward | October 2024
Britain can foster a new wave of entrepreneurs and boost small business growth by reforming tax, regulations, and lending. Currently, a mere 1% of businesses account for over 11% of the nation’s productivity, as many small firms struggle to expand due to high costs, poor access to finance, harsh economic conditions, a pronounced fear of failure, and excessive bureaucracy.
The report categorises the population's entrepreneurial potential, revealing that 71% are unlikely to start a business, while 29%—including those “on the fence” and “on the brink”—are more open to risk but hesitant due to fear of failure. Among existing entrepreneurs, segments range from “sole operators,” uninterested in growth, to “executives” already maximising their potential. The report emphasises that policies should target the “on the brink,” “contemplators,” and “growers” to encourage business ownership and expansion.
To overcome the barriers to entrepreneurship, the report recommends specific actions: lowering the VAT threshold, reforming business rates, creating Community Development Finance Institutions (CDFIs), introducing a ‘Business Startup Relief’ to incentivise entrepreneurship, and streamlining planning processes. Andrew Barclay, a co-author, asserts that by providing the right support, Britain can transform aspiring entrepreneurs into successful business owners and reclaim its entrepreneurial edge.
Comments