Small Business = Big Future

The Institute of Directors is an organisation which I have always had a great deal of respect for, and to read today it’s press release on Business Lending is of real concern.

 http://press.iod.com/newsdetails.aspx?ref=474&m=2&mi=62&ms=

One, might ask, what has small business done for me, but the truth is our economic recovery relies on small enterprise, now my views might not be the same as everyone’s, but if the Government gave every small business (employing up to 50 staff), a tax allowance of just £5200 so they could pay a 16 to 22 year old £100 per week at zero cost, and that individual did not have to pay any tax or national insurance on that income so long as they attending college or trade school, one day a week, we could reduce youth unemployment (the so called NEETs), and it would lead to a reduction in crime and disorder. It would give young people opportunity and hope.

The extra pair of hands would help our small businesses, and give them an extra staff member now, and lead to better skilled people in the future. This is not an expensive scheme. There are some really good training bodies (Trade) out there, one example is Asset Skills.

www.assetskills.org

If this Government with its Backing Young Britain scheme

http://interactive.bis.gov.uk/backingyoungbritain/

backed that with a scheme like I proposed, it would make a real difference.

As to the finance of business, this latest crisis, has gone further than previous ones, in that good sound businesses, and good well-presented business ideas have failed to gain finance,  I know personally of one businessman, who from his personal saving paid his staff, and corporate bills using his personal saving because two companies he had worked for had failed owing him money, his bank of sixteen years would not support his business with a 90 day overdraft or loan of £30,000, even though he was due a payment which was from a Ministry of Defence contract of £68,000 in 60 days, which was part of an on-going and regular payment for over four years. Because he would not trade knowing he could not pay his staff on time, he had to close the company, with the loss of 11 jobs, and the parts he made, are now being sourced from an engineering factory in the North of France, so is yet another import, with the money flowing outwards.

Britain is a great country, and what we all have to do, is work together. If a small business needs investment for a CNC lathe for example, and the banks won’t lend, see if there is another company locally, that has already made that investment and has spare capacity. I wrote to the Government and seriously suggested that they create a web portal, that companies could anonymously, list their spare capacity and other could list there needs.

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2 Responses to “Small Business = Big Future”


  1. 1 Gordon Johnston February 26, 2010 at 12:20

    Finally some sound solutions to the ever growing problems of Capitalist society. I’m sure that with further reading the cynics of our world would be able to undermine these proposals and make Mr Kirby’s views seem narrow minded and unsustainable .
    But what would be the point in that? It has been said that at the turn of the last century, all the optimists moved out of the UK and formed the foundations of the USA, (no small feat and not without its problems).
    But when I read idea’s like this one, my heart lifts a little. I wonder what we could achieve, if we all took the energy we use to complain and undermine, and diverted it towards optimistic ventures and social investment for our future not unlike our adventurous fore fathers.
    In the end I’m sure that we all wonder with trepidation, where the road our society walks, will lead to.

    Its about time we all empowered ourselves to walk our own path and understand that our actions today forge the society in which we live and will live in the future.
    Well done Mr. Kirby and please keep philosophising!

    • 2 csljohnkirby February 26, 2010 at 13:40

      Thank you very much for taking the time to comment. The cynics of this world are entitled to their view, but your point about being brave enough to find a new way (and remember the dangers of travel when our forebears went to America were huge) is a good one. Companies that are brave, are willing to adapt, in fact are not scared of sucess can still have a great future.


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