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As you know from my latest animated short movie 'A Sting In The Tail' http://www.youtube.com/soculitherz#p/a/u/0/13Ez-QHiEq0 the problem with government 'getting' enterprise is not really that much to do with public schoolboys and Oxbridge graduates that have never started and run an enterprise. It is much more to do with the role of their advisers, namely, senior civil servants, top johnny consultants and glampreneurs. If we rounded this lot up into the penthouse office suites of Ivory Tower or the dungeons of BIS at 1 Victoria Street and asked them questions about enterprise, and the skills and support required to do it, what would we find?
We'd find out that we have well meaning, very bright and highly qualified people with a pretty fair knowledge of the City, corporate management, leadership, 'walk the walk' jargon, professional occupations and traditional, functional vocations. They will even have an inkling of what businesses that start up with lots of financial backing, staff and even large amounts of first year's revenue (e.g.Tony Blair's, alleged, £12 million consultancy biz) look like. They will know what an independent retailer, an e-bay trader, a small private gym, a barber's shop, an independent cafe and a B&B in Scarborough (no - strike that) look like.
What most of these advisers to Ministers, like the Ministers themselves, are absolutely clueless on is what the 1 in 7 of the adult workforce, running their own enterprises, actually have to do in order to earn their living. They think there's something wrong with us, as small and home business owners, if we let on that the owner of most of the 400,000 start ups a year will earn less than £12,000 in the first year for themselves. They think there's something wrong that as many start up their own business out of necessity rather than opportunity. They can't see that starting and running our own enterprise is in fact the top UK career option - for many of us it's even all we can do.
They'll think there's something wrong that 90% of us work very long hours but have no intention of taking on more and in most cases, any, staff. They think there's something wrong with our ambition that most of us will start and continue working from home. They'll think there's something wrong that most of us prefer controlling our own destiny, by being our own boss, and prefer the online and offline community of others that do the same We'd rather do that then joining a professional or sector body to follow the best practice of the corporates.
Even glampreneur advisers to government don't always understand all of this. Enterquest published a survey of enterprise owners, this week, which showed that most thought that Dragons Den entrepreneurs, overall, were not helpful to small business).
Many of these government advisers say that most small business owners, like me, are 'Not strategic enough', 'Can't manage', 'Poor business plan', 'Banks would lend if they got half decent proposals', 'No idea on recruitment', motivation and people'. Indeed, they think there's something wrong when we say 'Selling your product or service', and getting the most hours each week doing this, is the most vital enterprise skill - 'can't others do that?'
There may be plenty wrong with us but none of the above. However, the growth in self employment and micro enterprises (don't like the 'word' - 'SMEs') over the last 20 years has truly, and proudly, made us the new working class of Britain and we are very different from these government advisers.
We are also where all the growth will come from, where the new jobs come from, where the innovation comes from, and where economic well being, communities and social cohesion will be built from. We probably wouldn't even swap places with our 'higher ups'.
However, the government's enterprise support and learning policies will always be lost in translation until this yawning (still with us?) gap of understanding is closed between government advisers and enterprise owners.
For policies to work, and most importantly to be implemented in a way that works (everyone will say its working if they're receiving funding to do it - even if it's the daftest thing you ever saw). these advisers must understand what attitudes, skills and know how are really needed to start and run your own self employed, micro or small enterprise.
Government and their advisers must also understand who is trusted by us, as small business owners, to help us gain the appropriate support, skills and know how to succeed (other small business owners and accountants usually come out top).
The stakes are high. With the right support, skills and know-how over 85% of all start ups will still be trading in 3 years time and 6% will become substantial businesses.
We have £millions of research and tens of thousands of small business owners each year providing testimony as to what is required and who should provide it. This evidence includes what pre start and start up support is essential and what must be available to all. It includes what the banks must do, what the colleges and universities must do, what the enterprise support communities must do and to how enterprise networks like Ecademy, Institute of Enterprise and Entrepreneurs and others can be enabled to do more.
The sting in the tail is that I don't see any likelihood of these advisers wanting to get their hands dirty by really finding out - certainly not to the point of understanding and empathy.
Therefore, my recommendation is that the Spending Review should announce that there will be no government department responsible for business support, innovation and skills. There will be no BIS.
I realise this means lots of job losses in BIS and in the consultancies they contract with but I know we'll help them all as start ups and ultimately they may be poorer but they'll be a damned sight happier and more interesting.. This solution means no more government funded business support or skills interventions. It means no more government support for any size of private sector organisation. So it will mean no more bale outs to the fat cats, no more trade missions, no more Business Links or local replacements for these, no more colleges and universities funded to provide management, leadership or entrepreneurship courses and no government funded start up support and training.
I think enterprise (self employed, micro and small and home business owners) can do it for themselves and make the UK the best place to start and run your own enterprise. We'll even mentor the unemployed wanting to become self employed - free of charge, initially. Naturally we'll set up enterprises to do all of this and most people will pay for quality enterprise support and training - but surely that's better?
It's the government intervention, without understanding, that is no longer affordable and is holding enterprise back..
We'd find out that we have well meaning, very bright and highly qualified people with a pretty fair knowledge of the City, corporate management, leadership, 'walk the walk' jargon, professional occupations and traditional, functional vocations. They will even have an inkling of what businesses that start up with lots of financial backing, staff and even large amounts of first year's revenue (e.g.Tony Blair's, alleged, £12 million consultancy biz) look like. They will know what an independent retailer, an e-bay trader, a small private gym, a barber's shop, an independent cafe and a B&B in Scarborough (no - strike that) look like.
What most of these advisers to Ministers, like the Ministers themselves, are absolutely clueless on is what the 1 in 7 of the adult workforce, running their own enterprises, actually have to do in order to earn their living. They think there's something wrong with us, as small and home business owners, if we let on that the owner of most of the 400,000 start ups a year will earn less than £12,000 in the first year for themselves. They think there's something wrong that as many start up their own business out of necessity rather than opportunity. They can't see that starting and running our own enterprise is in fact the top UK career option - for many of us it's even all we can do.
They'll think there's something wrong that 90% of us work very long hours but have no intention of taking on more and in most cases, any, staff. They think there's something wrong with our ambition that most of us will start and continue working from home. They'll think there's something wrong that most of us prefer controlling our own destiny, by being our own boss, and prefer the online and offline community of others that do the same We'd rather do that then joining a professional or sector body to follow the best practice of the corporates.
Even glampreneur advisers to government don't always understand all of this. Enterquest published a survey of enterprise owners, this week, which showed that most thought that Dragons Den entrepreneurs, overall, were not helpful to small business).
Many of these government advisers say that most small business owners, like me, are 'Not strategic enough', 'Can't manage', 'Poor business plan', 'Banks would lend if they got half decent proposals', 'No idea on recruitment', motivation and people'. Indeed, they think there's something wrong when we say 'Selling your product or service', and getting the most hours each week doing this, is the most vital enterprise skill - 'can't others do that?'
There may be plenty wrong with us but none of the above. However, the growth in self employment and micro enterprises (don't like the 'word' - 'SMEs') over the last 20 years has truly, and proudly, made us the new working class of Britain and we are very different from these government advisers.
We are also where all the growth will come from, where the new jobs come from, where the innovation comes from, and where economic well being, communities and social cohesion will be built from. We probably wouldn't even swap places with our 'higher ups'.
However, the government's enterprise support and learning policies will always be lost in translation until this yawning (still with us?) gap of understanding is closed between government advisers and enterprise owners.
For policies to work, and most importantly to be implemented in a way that works (everyone will say its working if they're receiving funding to do it - even if it's the daftest thing you ever saw). these advisers must understand what attitudes, skills and know how are really needed to start and run your own self employed, micro or small enterprise.
Government and their advisers must also understand who is trusted by us, as small business owners, to help us gain the appropriate support, skills and know how to succeed (other small business owners and accountants usually come out top).
The stakes are high. With the right support, skills and know-how over 85% of all start ups will still be trading in 3 years time and 6% will become substantial businesses.
We have £millions of research and tens of thousands of small business owners each year providing testimony as to what is required and who should provide it. This evidence includes what pre start and start up support is essential and what must be available to all. It includes what the banks must do, what the colleges and universities must do, what the enterprise support communities must do and to how enterprise networks like Ecademy, Institute of Enterprise and Entrepreneurs and others can be enabled to do more.
The sting in the tail is that I don't see any likelihood of these advisers wanting to get their hands dirty by really finding out - certainly not to the point of understanding and empathy.
Therefore, my recommendation is that the Spending Review should announce that there will be no government department responsible for business support, innovation and skills. There will be no BIS.
I realise this means lots of job losses in BIS and in the consultancies they contract with but I know we'll help them all as start ups and ultimately they may be poorer but they'll be a damned sight happier and more interesting.. This solution means no more government funded business support or skills interventions. It means no more government support for any size of private sector organisation. So it will mean no more bale outs to the fat cats, no more trade missions, no more Business Links or local replacements for these, no more colleges and universities funded to provide management, leadership or entrepreneurship courses and no government funded start up support and training.
I think enterprise (self employed, micro and small and home business owners) can do it for themselves and make the UK the best place to start and run your own enterprise. We'll even mentor the unemployed wanting to become self employed - free of charge, initially. Naturally we'll set up enterprises to do all of this and most people will pay for quality enterprise support and training - but surely that's better?
It's the government intervention, without understanding, that is no longer affordable and is holding enterprise back..
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