New start-up programme approved
Lord Peter Mandelson has given the go-ahead for a new £35 million scheme to create over 12,500 new businesses in the north-west.
Business secretary Mandelson visited the region today to officially launch the project, saying the new funding will give entrepreneurs a chance to get their company off the ground.
‘Nurturing and protecting start ups and young businesses through this downturn will lead us into the upturn that will follow,’ he adds.
Mandelson also says the government will not make the same mistakes it did in previous recessions.
He says that regional development agencies should take the lead role in helping local firms.
Steven Broomhead, chief executive of the Northwest Regional Development Agency (NWDA), says the programme will give people with a business idea the expertise to put their concept into practice.
He adds it is important to maintain optimistic realism in 2009 in order to support the economy.
Under the programme, budding company owners will be given a specialised package of support, training and advice, led by Business Link Northwest.
Funding for the project came from the NWDA and the European Regional Development Fund, with local authorities also being able to add to the money pot.
Tax third-biggest expense for SMEs
Cash-strapped SMEs are spending a significant proportion of expenditure on taxation, research by debt protection group Creditsafe reveals.
According to the survey, small businesses are devoting just under 16 per cent of their outgoings on tax obligations – totalling their third-biggest expense.
David Knowles, marketing director at Creditsafe, says: ‘This tax burden impacts profitability and the levels of investment that could be devoted to other aspects of the business.
‘While the announced delay in the increase in corporation tax from 21p to 22p in the pound is to be welcomed, many firms are struggling to survive as a result of restricted cash flow.’
Knowles adds that while larger companies have announced their intention to leave the UK to avoid corporation tax burdens, small businesses are being forced to take steps at the micro level to reduce costs.
Of the 502 small businesses surveyed, on average wages accounted for the biggest expense, representing almost a third (29 per cent) of outgoings.
This was followed by investment in stock and materials (17.5 per cent), with fuel costs accounting for ten per cent.
Poor health and safety could see firms go under
Health and safety could make or break a company, as one expert warns firms which play at it will find it hard to survive the current climate.
Nattasha Freeman, president of the Institution of Occupational Safety and Health, says the amended Health and Safety (Offences) Act, which is due to come into force this month, will mean firms have to take their responsibilities more seriously.
She adds companies which fail to adhere to guidelines face hefty fines, which will come at a time when they can ill afford them.
‘We’ve already seen many well-known high street firms collapse under the financial pressure of the economic climate. One needless accident during such challenging times could also spell the end for your company,’ the expert states.
Freeman adds that implementing good practices need not cost the earth and the information is out there for companies if they want to find out more.
Health and safety should be made a higher priority among firms, as should the wellbeing of staff members, she asserts.
Legal experts have recently advised changes to the act could see sentences for business owners breaching rules increase, to a maximum of two years.
Firms’ gender pay gap figures to be revealed
Companies may be forced to publish figures on the pay difference between male and female employees, in changes to the government’s equality bill.
Business leaders are predicting the new rules could see league tables of firms created, relating to pay equalities within the company.
The new changes could occur as the government is currently amending the equality bill, due to be published early this year, which would force firms to publish pay details in their annual accounts.
Changes to the bill have been criticised by some industry groups and the Confederation of British Industry says it would do little to tackle inequality.
Lady Prosser, deputy chair of the Equality and Human Rights Commission, states the move would give a good picture of who is lagging behind when it comes to equality.
‘That’s not a good image to have and those firms will just have to do something about it if they don’t want to be embarrassed,’ she adds.
John Wright, chairman of the Federation of Small Businesses, states he hopes some provision will be given to the impact of these auditing services on small firms.
Currently men are paid on average 17.1 per cent more than women when in full-time work, with figures from the Office of National Statistics showing the gap is larger for part-time employees.
Entrepreneurs adding a day to their working week
Entrepreneurs are adding eight hours to their working week in a bid to counter the effects of the recession, new research shows.
Figures from the Tenon Forum, an entrepreneur thinktank, reveal more than a quarter of business owners have increased their hours as a response to the recession.
The average increase for each company owner was eight hours a week, effectively adding an additional day to the working week.
Carl Jackson, head of Tenon Recovery, says the research comes as no surprise as the UK sees more businesses fail each week.
‘In these uncertain times, bosses and their staff need to work together to ensure their businesses are in the best possible position to have a successful year in 2009,’ he adds.
The survey also showed over a quarter of businesses have already let staff go since the credit crunch began, with a similar number also planning to cut wages.
However, a recent survey from Premierline Direct showed that owning your own company can reduce stress levels, with 81 per cent of respondents saying they get a better night’s sleep now they run their own firm.
Business Problem Equals Small Business Opportunity.
As we slip deeper and deeper into this recession/depression one could get the impression that the business opportunities are disappearing. It is easy to fall into this trap with all the media coverage of the credit crunch, housing bubble, job losses and so on. But once you look past this and stop surrendering to the panic and fear you will find that there are many opportunities for small business out there.
In fact it is essential not to give in to this paralyzing fear and re-take control of your life and your business. All fear does, is hide the opportunities that exist out there from your view. The sign of a true entrepreneur is the inability to see problems, an entrepreneur sees only opportunities. I believe that to be true more then anything else about entrepreneurs.
So here it is, business problems equal small business opportunities and big business problems equal big small business opportunities.
Are you an entrepreneur or a worrier, if you are a worrier you are missing the best business opportunities. — ST.
winweb.com - Software and business services online to start and run a small business - free trial and 100+ free business ideas.
Tax return scam warning<br />
Just weeks before the deadline for filing tax returns, fraudsters are targeting individuals with scam emails.
The HMRC says it has received thousands of complaints from recipients of emails asking them to supply their financial details electronically in order to claim tax rebates.
Victims run the risk of having their accounts emptied, as well as their personal details sold on to other organised gangs.
Lesley Strathie, chief executive of HMRC, says: ‘This is the most sophisticated and prolific scam that we have encountered. We only ever contact customers who are due a refund in writing by post. I would strongly encourage anyone receiving such an email to send it to us for investigation.’
The HMRC is also warning people of a growing number of telephone scams with fraudsters posing as tax officials arranging rebate payments.
The deadline for tax returns is 31 January, anyone filing a late return could be fined £100.
Tax officials are advising anyone who has received a fraudulent email to forward it unopened to phishing@hmrc.gsi.gov.uk.
New start-up programme approved
Lord Peter Mandelson has given the go-ahead for a new £35 million scheme to create over 12,500 new businesses in the north-west.
Business secretary Mandelson visited the region today to officially launch the project, saying the new funding will give entrepreneurs a chance to get their company off the ground.
‘Nurturing and protecting start ups and young businesses through this downturn will lead us into the upturn that will follow,’ he adds.
Mandelson also says the government will not make the same mistakes it did in previous recessions.
He says that regional development agencies should take the lead role in helping local firms.
Steven Broomhead, chief executive of the Northwest Regional Development Agency (NWDA), says the programme will give people with a business idea the expertise to put their concept into practice.
He adds it is important to maintain optimistic realism in 2009 in order to support the economy.
Under the programme, budding company owners will be given a specialised package of support, training and advice, led by Business Link Northwest.
Funding for the project came from the NWDA and the European Regional Development Fund, with local authorities also being able to add to the money pot.
Tax third-biggest expense for SMEs
Cash-strapped SMEs are spending a significant proportion of expenditure on taxation, research by debt protection group Creditsafe reveals.
According to the survey, small businesses are devoting just under 16 per cent of their outgoings on tax obligations – totalling their third-biggest expense.
David Knowles, marketing director at Creditsafe, says: ‘This tax burden impacts profitability and the levels of investment that could be devoted to other aspects of the business.
‘While the announced delay in the increase in corporation tax from 21p to 22p in the pound is to be welcomed, many firms are struggling to survive as a result of restricted cash flow.’
Knowles adds that while larger companies have announced their intention to leave the UK to avoid corporation tax burdens, small businesses are being forced to take steps at the micro level to reduce costs.
Of the 502 small businesses surveyed, on average wages accounted for the biggest expense, representing almost a third (29 per cent) of outgoings.
This was followed by investment in stock and materials (17.5 per cent), with fuel costs accounting for ten per cent.
Entrepreneurs adding a day to their working week
Entrepreneurs are adding eight hours to their working week in a bid to counter the effects of the recession, new research shows.
Figures from the Tenon Forum, an entrepreneur thinktank, reveal more than a quarter of business owners have increased their hours as a response to the recession.
The average increase for each company owner was eight hours a week, effectively adding an additional day to the working week.
Carl Jackson, head of Tenon Recovery, says the research comes as no surprise as the UK sees more businesses fail each week.
‘In these uncertain times, bosses and their staff need to work together to ensure their businesses are in the best possible position to have a successful year in 2009,’ he adds.
The survey also showed over a quarter of businesses have already let staff go since the credit crunch began, with a similar number also planning to cut wages.
However, a recent survey from Premierline Direct showed that owning your own company can reduce stress levels, with 81 per cent of respondents saying they get a better night’s sleep now they run their own firm.