25/01/2012 by admin.

The fall in GDP confirms the ongoing fragile nature of the economy. The figure is in line with a recent FEDERATION OF SMALL BUSINESS survey which showed that confidence among small businesses plummeted in Quarter 4, recording a score of -24.5 - a fall of some 15 points from the previous quarter. In Kent the autumn FSB Small Business Barometer revealed the proportion of small business in the county forecasting the same or improved performance in 2012 had fallen by four percentage points to 66%.

The Government had made some good proposals which will help to boost growth, but it is time for action. We need to see these proposals come to fruition so that small firms begin to see action on the ground which really will benefit their business and encourage them to invest and create jobs.

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08/09/2010 by admin.

As a small business owner of some thirty years and the Chairman of the Kent and Medway Federation of Small Businesses, I have a comprehensive understanding of the issues and constraints facing the micro and the small business sector. As roots of the economy we have issues that a strong broad partnership with neighbours would go a long way to solving, whilst enhancing the critical impact of the south and east as a major contributor to the UK economy.

Fundamentally, this partnership must address the completion of the Thames Gateway and the river crossing issues to enable a dynamic and fast flowing infrastructure together with growing the local supply chain potential. It must also for example, deliver a far greater level of broadband as a basic utility.

It must deliver innovative thinking and the freedom to make decisions locally and take the responsibility for them.

The proposed partnership with the attendant offers by Secretary of State Eric Pickles would indicate that this Partnership has the potential for such an innovative and vibrant solution in delivering an economy maximising our potential for innovation and growth.

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11/08/2010 by admin.

I make no apologies for the fact that I may appear to be occasionally cynical. It stems from a well deserved right based on my age, thirty years self employment and having spent ten years lobbying, standing up for the rights of small businesses to survive.

It is a healthy cynicism, indeed it is a collaborative and entirely supportive approach in attempting to understand just what is going on in the world of politics with its new thinking and sweeping away of old orders to bring in the new. If I put a question that is mildly challenging, just as I would throw a stone into a pond, I see the ripples as a radar system for measuring the answer, and if, as one of my old tutors told me, attack is the best form of defence, I use that to judge the substance of response.

Having spent many hundreds of hours over the last ten years sitting in consultation with government as a business representative and  having driven hundreds of miles to those meetings, to see initiative after initiative literally thrown away or replaced by the latest adaptation, I believe that may be the root of some of my cynical tendencies. The work we did in the Regional Assembly, an interesting but costly experiment in collaboration created by the democratically elected – now merely dismissed as unwanted regionalism. The South East Plan, the spatial strategies, the myriad of consultative groups on education, skills, business support, broadband provision, infrastructure and the rest all binned. And where has it got us?

Local Enterprise Partnerships. Now it’s Localism, the latest and most urgent task upon which to dwell, something that the latest government has created and the latest in a long line of thought provoking tests of thinking, seeking the appropriate solution for us to build the latest round of initiatives on. Am I cynical? Yes. Am I hopeful, will I put in yet more hours in collaboration and in workshops and responses? Yes. All across the country our FSB colleagues are gathering a head of steam working on this new opportunity. Many of the reports coming back indicate a complete disarray amongst the local authorities and a very varied approach to the inclusion of business.

This time, we have a Prime Minister that has clearly set out, albeit a sketchy agenda for a brave new world of collaboration focused on the explicit value of the business community. The cynic shouts out that government has not thought anything through and has been too quick to dismantle old structures. The pragmatist comes through helpfully pointing out that we may need a little more pain to build something bold and solid.

The Kent Economic Board (KEB) met to examine the LEP potential. The questions were put – fundamentally what is it we need? We already know those answers, nothing has changed over the last 12 months other than the country is a great deal poorer, what we have to find now is the way of generating a solution which ultimately includes bidding for part of a pot of money Government is putting up. The end goal is greater profitability and stability of the business sector generating growth, jobs and a strong return to the Exchequer’s coffers.

We have had the benefit of the KEB and the Kent Partnership for a number of years that has enabled the county to bring together a diverse group to discuss the county’s needs and aspirations. Everything is in place for the creation of the LEP. Compared to the situation many of my FSB colleagues find themselves in around the country, we are streets ahead and should applaud that fact. What is different this time is the suggestion from Government that the LEP be equal business and political in its composition and it suggests that business will have the ability to make decisions and expect a reasonable level of implementation. The test will be for the democratically elected to work within that scenario. After all there is a partnership already in existence – business creates the wealth – they spend it.

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11/08/2010 by admin.

Let’s just assume for the moment we were running a plc, call it GB Enterprises if you like. The southern patch of the sales area has been generating most of the business and innovation that funds the rest of the business. It has been doing that for some time and really shows no sign of discontinuing its value to the business as a whole. However, the other sales reps are getting a bit peeved because we have been investing in the south, but they sure as hell don’t mind benefitting from the income that the other bit delivers for them.

Now we have a new Managing Director and Board and they are scared of the regional sales teams so what they have decided to do is not just stop investing heavily in supporting the productive part of the business, they are positively going to discriminate against it making it more expensive and less encouraging to begin new projects and deliver new products.

Just to add a fly into the ointment, the shareholders now want a greater say in the decision making process, as those that provide the funding for the capital that drives the company forward, the problem is – the management really don’t want to let them have a vote on anything.

Sound at all familiar? What London School of Economics or Harvard Business School guru would use that as an example of good business management? But there again I am just a simple micro business owner, what do I know?

The South East England Federation of Small Businesses has expressed anger and disappointment that the Budget announced by Chancellor of the Exchequer Gordon Osborne discriminates against potential new small businesses in the South East.

There is no doubt that National Insurance Contributions are a tax on jobs which hit small businesses particularly hard and the FSB has campaigned strongly against the proposed increase as it is clearly a tax on jobs.

That means the plans to exempt new firms from paying up to £5,000 a year in NIC for taking on up to 10 new staff is a move the FSB welcomes but where the plan goes wrong is by excluding businesses in the Greater South East from this scheme.

The Chancellor rightly claims that in those Regions, which include London, South East and East of England, many private sector jobs have been created in the last 10 years but that should not mean that we are now penalised because of that success.

This aspect of the Budget clearly discriminates against businesses in the South East and undermines the Chancellor’s claim that this is a ‘fair’ budget.

The FSB wishes to see this NIC exemption applied across the whole country and we urge the Chancellor to think again on the discriminatory nature of his current plans.

The FSB represents more than 213,000 business people across the United Kingdom with around 40,000 in the southeast, and is the largest single organisation representing business interests in the country. However, working together with colleagues from the other key employer organisations under the banner of the Southeast Business Forum (SEBUS), we are in direct dialogue with government, reinforcing the messages that are rapidly building a picture of deep discontent and concern. Time for the Managing Director and his Board to listen very carefully.

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11/08/2010 by admin.

So there we have it, fresh, bright optimistic words from the new Prime Minister in his speech on 5^th May. Words that we have believed should be the defacto status of a true democracy. Whether a local politician, an MP or an MEP or government official at any level, the word is out on the street, the guidelines are set, the people have spoken.

Now we need to see who is listening. The cold hard facts are that we are in a serious position, money will be tight, tax will be higher. The question we must now constantly ask, is – is it fair, is it sensible, will it build or destroy. What we must not lose sight of is the fact that the small business sector has a critical role to play in the underlying structure of the economy and must be nurtured. Take away the ability to invest, the ability to employ, the feeling of confidence and the entrepreneurial risk taking, then this economy and the country will not meet the prosperity targets it needs to set for itself for global survival.

The FSB is pleased that coalition negotiators have listened to the business community and plan to reverse the proposed one per cent increase in NICs for employers. A healthy increase in personal tax thresholds is something that FSB has been urging for some time. This will not only provide more disposable income for the lowest paid workers, but will also encourage businesses to take on more staff. From our point of view, the inclusion of the Lib Dems is an interesting one as they lifted much of the content of our own manifesto – typos as well and incorporated it in their own.

Reading through the Coalition programme for government there are some quite clear promises that are being made. The fact that it is spelt out that “Government believes that business is the driver of economic growth and innovation” is hardly surprising, but we are all agog as to how they will set out to deal with the issues.  The regulatory burden reduction is top of the list it seems and yes, with that approach business may begin to get a breath of air into the working week and have more time to concentrate on the job in hand – growth. The promise to “support the creation of Local Enterprise Partnerships – joint local authority business bodies to promote local economic development” seems a little like closing the gate after the horse has bolted, Kent surely has a good precedent in the Economic Board, however with a new slant and some empowerment as suggested by the paper, it could be rebuilt to replace the Regional Development Agency activities.

It is critically a time where politicians have had their cards marked, and are under a microscope, now is the time, as evidenced by the start of this unique coalition, to set aside old ways of thinking, political dogma and to stand up and think of Britain and deliver promises.

There are some great, hardworking people out there in the public sector and local government with whom the FSB are working with and applauding through the FSB Accord initiative and I know that my colleagues in business and in the FSB will do their best to play a role in our economic recovery, it needs to be a joint effort – call it a coalition if you will.

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26/05/2010 by admin.

When you destroy something that has patently worked well; when you remove a large group of people from a position of trust and inclusion; when you leave behind, in its place a residue of politicians all smugly believing that they have reinstated legitimate governance and democracy, you might want to ask a few questions.

The last few months, at the end of 2008 have demonstrated without a shadow of doubt the critical value of non-political input into the governance of the UK. Not just nationally, but down to Local Authority level. What scares the politicians is any intrusion into what they believe are their sole areas of authority - decision making. What truly concerns them is that anyone else has an opportunity to cast a vote in that decision making process.

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14/02/2010 by admin.

So we have hit the year sliding, some of us even managed to get to the office. There is no denying the fact that the UK is not up to it when it comes to dealing with snow, something which the FSB is calling for a major national conference to have a look at. I take full responsibility for having a rear wheel drive car and if it was not for the fact that my broadband connection was a thousand times faster snow and ice or not, I would not have been able to carry on working relatively effectively. Business has taken another battering, but have we learned any lessons?

Broadband connectivity is critical, at the right speed and the right price. We have only have to look at Finland to see the investment that country is putting into its communications infrastructure – why should Kent be any less endowed? One of the vital points here is the expense and the contention ratios. It is all very well to say you can have the speed, but if you are buying through a national provider – or getting it for free, then the price of the overall package may just be acceptable, but is the service. In a situation like this we have to look at the contention ratios – how many people are sharing the same connection at the same time as you are? My question has been, and remains, what can KCC do to help here? Several years ago, on the Kent Broadband Committee), we haggled with BT over opening up access; now years later we have not kept up the pressure and looked forward sufficiently at the new superfast capabilities or the spare capacities that can be found in our schools and other public institutions that could possibly be sold on. We have been talking, but frankly it has been offline for some time. One excuse has been that it may contravene State Aid regulations, but please, someone must have the wit somewhere to find a solution.

The broadband link brings me nicely into the comment about the HMRC. Small businesses are being firmly pushed along the online route. Financial encouragement, extra time to complete returns you name it. But it still hinges around the quality and consistency of the service we get. In endeavouring to complete the company’s first online VAT return I ended up not knowing whether I had successes or not. It was only when I got “The Letter” through the post I knew something had gone wrong. Putting that on hold for the moment, a few days ago I also had to talk to HMRC to clarify the payroll returns, and on both of these occasions I was taken aback at the helpfulness and indeed friendliness of the person at the other end of the line. I can only hope that this has been at the result of some focussed training and that someone somewhere has at last come to the realisation that businesses should not automatically be treated as crooks and that human error, when under the considerable pressure of running one’s own business, can happen.  

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14/02/2010 by admin.

The beginning of a new year brings with it the hope of fresh starts and the opportunity to wipe slates clean and begin with a renewed vigour, putting into place all those actions we promised ourselves and really start making a difference – doesn’t it?

Normally I look forward to the start of the year because for one thing I have had a break from the pressures, but this last Christmas will have seen a short lull which doubtless will have made some difference but not long enough, a few days quickly brings home the harsh reality of the fragility of the economy to us. I have almost invariably been a positive and optimistic person, and running a business either for someone else or myself for some thirty years should have taught me a lesson or two. It has. At our “small” and in particular the “micro” business level we have the opportunity to be flexible and unencumbered by overt internal regulation and bureaucracy.

The Micro businesses are all around us, they are the very grassroots of the economy, in 2008, SEEDA figures indicate businesses with 1-4 employees represented around 7% of the southeast turnover, the FSB thinks it is much greater with thousands almost unseen below the VAT threshold. If the economy as a whole is to survive, then we have to ensure that we have sustainability at this level, the diminutive descriptor should not disguise their true value. We do hear about the innovative entrepreneur with an exciting new approach to business, but how much of that is focused around the celebrity values of Dragons Den and The Apprentice. They make great news, but in no way are they the norm. Where is the X factor in everyday business? Where is the hero worship of these stalwarts that hang on in there day after day running their businesses come hell or high water?

The FSB has just completed a major piece of research which demonstrated that more than half of businesses have resisted the worst of the recession by innovating, creating new products and services, a fact that I have found myself amongst the members I meet. The 2009 survey reveals that over half of businesses introduced new or improved products and services and that again over half will continue this momentum and are keen to grow despite tough times. Just under one third (27%) respondents said their profitability has increased over the last year and 30% said sales volume had gone up.

We fundamentally no longer have the luxury of just talking, it is action that is the key to 2010. That goes for all of us, either in business or government at all levels. We should not let up on the talking but we have to do more, it needs lead directly to delivery, and the delivery needs to be now – not tomorrow. We need to work together in collaborative networks as indeed the whole is greater than the sum of its parts.

This year will see a massive round of talking and promise making, yes it’s an election year. The one message we need to get over and over again to those we elect to look after our interests is to keep it simple, keep it proportional and do not stifle the innovation and vitality of our small and micro businesses. I wish you all a happy and prosperous new year.

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14/12/2008 by admin.

PUBLIC PROCUREMENT – FINDING THE POWER IN PARTNERSHIPS

Since the Budget Report from the Chancellor and in that were the promises of certain measures in support of small business. If we needed any indication as to the growing publicly expressed value Government is putting on small businesses, we need look no further. A £1 billion support fund is being put on the table. The ideas and drive for this came significantly from the FSB whose policy team is working with the Treasury to ensure that delivery will be effective.

As a member of the South East Economic Delivery Council sitting with the Regional Minister and Senior members of the Development Agency and Government Office, I know at first hand the concern that is driving very serious moves to support small businesses.

That of course is only part of it, the rest is up to us, we have to innovate and build positions of strength to ride the storm. In my day job, as a marketing consultant for over twenty years for a major player in door and window hardware manufacture, I understand the way the industry works and the ways in which we have to formulate new approaches to business development. Part of the Government solution is to ensure that the construction industry does not suffer, it can stimulate the sector by maintaining the best levels of housing and public works possible. In public sector procurement, there are many hoops that have to be jumped through to win contracts. The FSB is lobbying hard for simplification of the Pre Qualification Questionnaires for one thing, but you will have to ensure that you have all the facts and figures required at your fingertips with your policies in place, that includes essentials such as Quality Management, Health and Safety, Equal Opportunities, Environmental Management and nice to haves such as Diversity Policy, Sustainable Procurement and an Ethical Policy.

Looking at these policies, one that is rapidly emerging is that relating to environmental issues. Being green is a growing demand from the public contracts and indeed from private purchasers as well, although here nothing can beat best value. This is where we all need to have policies in place collectively, for example in the window fabrication industry where fabricators especially need to look to strong reliable partnerships that can help them assemble the required evidence right through the supply chain. Manufacturers are achieving accreditation in the various standards, but in a bid for public work, it has to be demonstrated from top to bottom. So for a window fabricator you will have to look to your profile, hardware, glazing manufacturers, even the spacer bar, to play their part. However when it comes to meeting standards such as for Energy Efficiency, only the window fabricator can achieve this, as it is the assembly of all the components within the fabrication process that counts. All these are the drivers leading to quality partnerships and collaboration which surely must be the way forward.

Roger House, Managing Director of Big Solutions Ltd and SE Policy Chairman FSB.

www.big-solutions.co.uk  www.fsb.org.uk

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14/12/2008 by admin.

Diplomas go to work 

One of the most exciting elements of the Diploma curriculum is the access it will provide for young people to high-quality work experience.  However, this new approach poses a number of significant challenges for all those involved in Diplomas.

To help provide guidance and inspiration for all those now delivering Diplomas – and those who are planning to start offering them in 2009 – Education Watch has spoken to Education for Enterprise in Kent, which is working closely with Consortia in Kent and other areas in the South East to co-ordinate structured work placements for Diploma students in the area.  Focusing initially on the Creative & Media Diploma, Education for Enterprise will soon also be supporting Consortia offering several other Diploma lines.

Relieving the pressure

A valuable resource for Consortia grappling with the challenges of delivering Diplomas for the first time, organisations like Education for Enterprise can provide comprehensive support and useful links between Consortia and business.  Thanks to its direct access to local businesses, it can free up teachers’ time to focus on delivering the breadth of the new curriculum in the classroom, while Education for Enterprise looks after the potentially time-consuming task of finding relevant businesses to work with. 

Roger House, Managing Director of Education for Enterprise CIC, has more than 30 years’ business experience.  Roger says, “The prospect of approaching employers about work experience can be intimidating for some teachers, and co-ordinating the approach can be very time-consuming – just as they are familiarising themselves with the broad content of the new Diploma curriculum.  Many teachers are looking for help to recognise which businesses have the right qualities to work with Consortia.  They also want advice about how to use the business’ time effectively to make sure the partnerships are sustainable.”

But help is on hand.  As Regional Chairman of the Federation of Small Businesses (FSB) in Kent and Policy Chairman for South East England, Roger has a deep understanding of employers’ needs and what’s needed to encourage them to engage with Consortia in their area.

Adding value for all

With around 90% of UK businesses comprising Micro or Small Enterprises (MSEs), this army of entrepreneurs can offer young people a vital insight into commerce.  

“The vast majority of UK enterprise is made up of small businesses rather than large multinational organisations, and it’s important that we engage effectively with the small business community. This requires improved communication from schools and an understanding of the costs involved for the businesses that engage with Diplomas,” says Roger. 

“We hope that the Diploma curriculum will give young people with a clearer understanding of a typical workplace in action,” he continues.  “Well-structured work placements will help young people start building a strong work ethic that prepares them for their future careers – and that is good news for business.”

Roger believes the key challenges of the work placement elements of the Diploma curriculum lie in making the interaction between business and young people a valuable and worthwhile experience for all parties.  He comments:

“Those young people with a positive attitude to their work placements, who are keen to make a difference in the workplaces they visit, will clearly benefit the most from this element of the Diploma.  But many young people who haven’t visited businesses previously will feel unsure about how they can add value during their work placements.”

To help prepare young people for work experience, organisations like Education for Enterprise host workshops in schools.  “We aim to help young people start thinking about how to make the most of work experience placements before they arrive on their first day,” comments Roger.  “They really appreciate being given practical tips on how they can add value to the organisations they visit, so they can make the most of their experience.”

The measure of success

Roger believes that Diplomas have the potential to change the way employers recruit in future, and create parity on the perception of the value of academic and vocational qualifications.  However, he adds:

“These are exciting times, but the introduction of Diplomas won’t automatically change perceptions or alter employers’ approach to recruitment.  To make this happen, we need to work together to communicate at every opportunity the value of Diplomas and work experience placements to business.  The sign of success will be employers signing up to participate year after year – this will show their clear recognition of the opportunities that the work placements offer, both for young people, and for UK plc. We hope to see other benefits too, such as employers taking on more Apprentices.”

For more information visit www.smallbusinessambassadors.co.uk or email info@smallbusinessambassadors.co.uk

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