Government Has Failed Startups
31st January 2018.
The startup businesses of the UK are fundamental to the economy, as well as keeping us front-runners in the digital race. Startups tend to be braver and bolder in their new business concepts than older companies and enjoy changing the business landscape. The numbers of these firms have held strong over the last few years- that is until now. The numbers of startup businesses has now fallen for the first time in seven years, and the blame has been brought swiftly to the door of number 10.
Issues such as the increased businesses rates have been seen as the cause for the falling figures, and a think tank believes the Government could have done more to help. Here at the Credit Protection Association, we encourage the expansion plans of our start-up members by offering our debt and credit management services. With bank scandals threatening the lending relationship, and the increased business rates threatening cash flow, startups need to know they have options.
Figures from the Centre for Entrepreneurs think tank have revealed a 13.7 percent decline in the number of startups formed in Britain last year. The report, using data from Companies House, shows just over 589,000 new ventures were created in 2017.
Founders have complained of an unfavourable atmosphere for starting businesses since Theresa May became prime minister. After all, it is the first time business formations have dropped since 2010, according to the Office for National Statistics.
Rebecca Long-Bailey, the shadow business secretary, accused the government of ignoring the needs of start-ups. “It’s been clear for some time that the government is failing to properly support entrepreneurs,” she said. “Mishandling of business rates is just one of a number of examples.”
Startups are critical in keeping the UK ahead of competitive international economies. They brunt the risk of breakthrough innovation and new technology, and do it without much financial cushion or impressionable size. They also contribute to a majority of new employment. While big companies tend to maintain the same work force, start ups tend to encourage new and emerging talent. Funding has always been issue however, with many startups looking to friends, family, and their own savings for capital. Issues like the high business rates need to be amended to aid startups and small businesses across the country. The Government’s eventual deal with the EU will inevitably change the landscape even further, so startups should at least be offered a chance.
In the meantime, the Credit Protection Association is eager to offer help to any startups businesses owners who are struggling with bad cash flow. Our debt collection services will soon free up some funding to allow those expansion or innovation plans to become a reality. Please get in touch with one of our staff members with the details below!