If the UK wants to regain its competitive edge, wealth creators need to show more confidence
Britain is inherently creative and inventive: look at our globally renowned music, art and advertising and the inventions that changed the world. But this creativity has been whittled away in recent decades.
My businesses (together the Prelude Group) want to help the UK find its enterprise mojo again – hence our mission statement to "Making Britain the most enterprising nation in the world". But how can we get the country moving again?
Let's clear away the regulatory obstacles for a start. They not only block growth but can also lead to unnecessary litigation. In more
than 400 roundtable discussions I have hosted with fast-growth entrepreneurs, the single biggest barrier to small businesses hiring more staff is a fear of employment law and the way tribunals apply it.
George Osborne's announcements at the Tory conference about changes to procedure are welcome but without caps on discrimination claims I suspect the fear of breaking rules will continue to deter people from hiring more employees.
Many excellent, people-orientated businesses often end up paying disproportionate amounts to undeserving cases. And the result is that in small firms these payouts mean others do not secure pay rises or bonuses. It's a tax on the fair.
Business owners must be given more access to effective support networks. I run The Supper Club, a membership club for innovative entrepreneurs beyond start-up. The best take time to learn from their peers, share best practice and find out how to avoid pitfalls they may not have even known existed.
Mentoring can also boost business. As co-founder of StartUp Britain, I set up a scheme offering opportunities for new firms to learn tips from successful entrepreneurs. Almost 90 per cent of respondents said it would help them grow their companies this year, and more than two-thirds thought they were likely to take on more staff as a result.
Finally, entrepreneurs must focus on profit margin. Healthy margins enable a business to absorb growing costs, such as R&D, employ new staff and build an effective management team. It's also one of the best ways to maximise capital value. Without margin, businesses either cannot grow, or run the risk of failure.
We're too ready to congratulate those with top-line sales growth and a successful exit. Instead, why not cheer those who have the confidence to price up and make great margins? It's these businesses that will
survive in the long run. But before we can do that entrepreneurs must show more confidence in what they offer. We must find our enterprise mojo – do that and we may yet
again become the most enterprising nation in the world.
