Comments for http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html en-gb 30 Thu 23 Oct 2014 17:58:25 GMT+1 A feed of user comments from the page found at http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html Dr John Galt http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=99#comment204 In the end will red tape be cut, or just more created? Has government thought to ask businesses what they find to be their greatest problems? Wed 03 Nov 2010 09:10:50 GMT+1 Black_And_Proud http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=99#comment203 Various problems of an indeterminate nature. Wed 03 Nov 2010 07:58:23 GMT+1 Simon Schofield http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=98#comment202 As a small company director having started our own company 8 years ago, I have expereinced absolutely no assistance from any organisation and no reduction in red tape at all. Banks will not lend, obtaining credit is difficult and the government tax system (VAT, PAYE, Corporation Tax etc) is just a joke. I have seen other businesses (good businesses) vanish due to the stress of keeping going! I feel strongly that we live in a 'take' society and one that threatens individuals who work very hard to maintain cash flow. We have been lucky - working in IT, but many others have and will continue to suffer. A change of government - so what. All I wish is that small business owners were viewed as the backbone of British society and given help in times of difficulty. Wed 03 Nov 2010 07:41:29 GMT+1 braveraddish http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=98#comment201 In our town there used to be a fair few council owned retail premesisat cheap rents and rates. but slowly over time these have been sold off to private landlords who hiked up rents until they were only reachable by national firms. buisness rates on top of these rents for start ups is unfair, there is one income generated from a business, often supporting a whole familly (working for nothing half the time).Then you have the council, putting on subsidised transport taking your customers to the town center. painting double yellow lines around one business and creating drive through schemes for another, who decides these things. you recieve your new business lease which says its a self repairing leaseand the tenant is responsible for all repairs, brilliant oh and your rent, will increase by 3.5% every year in line with inflation. Your profit doesnt rise with it.Petrol tax allowance is decreased, oh and by the way this year you will be fined for not having a tax return in by a deadline. we have a scheme for shuttering but you are not in the zone. You will have to pay for your bins emptied as its not domestic waste. tax on alcohol, cigarettes just went up and cigarettes, beer and spirits can be imported duty free, which you arnt alowed to sell.Environmental health - your loo door needs ventilating its in the regs?really, you see that big 4 inch gap between the floor and the door?there is a big supermarket opening just down the road that will have all your business products at cheaper prices than your wholesaler, they are open 24/7 thanks.the banks, charges, unbelievable. more and more difficult to operate every year.there was no working tax credits to help although proving your income from a small business must be a nightmare. Please inform us of any changes to your income, well last week my takings were, can you imagine?what I have noticed is these shops are empty, run down and rat ridden. Wed 03 Nov 2010 03:44:10 GMT+1 Jaker http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=97#comment200 Numerous...that's how many! Tue 02 Nov 2010 23:59:07 GMT+1 Jeff Martin http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=97#comment199 Cashflow is the biggest problem.Big firms delaying payment for as long as they can.Banks refusing temporary overdraught facilites.Ever-increasing overheads.How's that for starters.If the new "tzar" can sort out the above, it'll be a good start. Tue 02 Nov 2010 23:58:21 GMT+1 Lynn http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=96#comment198 The model of 'Dragon Dam' is not workable for innovation industry. When inventors lost big share at the early stage of development, they will lose their momentum to continue the development.My idea of 'industrial adoption scheme' to grow innovation industry in the UK is described below:-1. The government should only sponsored SME with patented inventions, so that when people have good ideas, they will immediately apply for patent protection. Also, the use of patents as the funding criteria can avoid abuse of the system.2. Put up high taxation on companies’ bonuses.3. Bridge up an industrial adoption relationship to help patented inventions developed. If a rich British individual or company adopts a SME patented invention and help its development, they can receive tax relief on their bonuses.4. Restrictions:-1) Once the patented inventions being launch on the market, they can no longer to be used as a tool of tax relief.2) The adopting relationship can only be established externally. When two parties operated as partnership or shareholders, then the adopting relationship have to be terminated.The similar scenario can also be applied to ease trade imbalances. For instance, when an importing country adopts more UK inventions, they could be allowed more import tax relief….etc. This scheme can help create more high tech jobs in GB and made GB a big R/D centre in the world. Tue 02 Nov 2010 22:47:57 GMT+1 markus_uk http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=96#comment197 size! Tue 02 Nov 2010 21:06:35 GMT+1 GeorgyPorgy http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=95#comment196 At the end of the 'normal' working day, the person with a small business, then has to do Paperwork, make phone calls to people who are out in the daytime, sort out Invoices, arrange their work, answer calls, and ensure receipts & incoming mail is dealt with. And, most importantly, they have to Chase their own Wages. While the general population enjoys an evening of leisure, the small business person is beavering away with all the mundane things that keep his head above water. After 34 years of being a small business, I would NOT recommend this to my worst enemy. Life outside of work does NOT exist. When a customer decides to not pay for their work, it is the small business person who has to prove it is owed, and then take specific steps to get it. It costs the small business money, to take a customer to the small claims courts, and then it is not guaranteed to be forthcoming without a fight. There is nothing lazy about the small business person, as their life depends on their customers paying their wages, not the company manager or some other invisible being. Saving-up to pay your own Tax, when you don't have any money coming in, can be quite sole destroying. Paying your own NI Contributions, and not being able to receive ANY benefits from doing so, just seems to take the biscuit for most of the time. Our Government hasn't done anything for any of us, working people, so far and it is likely to get worse. I can only see that the future holds very little food for us, as it is already very tough. Tue 02 Nov 2010 19:24:12 GMT+1 JPublic http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=95#comment195 187. At 2:57pm on 02 Nov 2010, adelaide wrote:"Retail licences, property rent, employment rules and regs, health and safety guidelines, insurance, heating, lighting, tax; it goes on and on and it is very very expensive. How about the government grows up a bit and stops trying to turn us into a nation of shopkeepers!!!! Let us have some good industry back again like the steel industry, motor industry, engineering shops, ship building industry, The Pottories, aviation industry, weaving industry, etc and now we can add the green energy industry. Small business has a place but it cannot stand alone and we need to produce goods to sell to make money to buy!!!!"-------------------------------------------------------------------------I think you will find the EU at the very root of the problems you describe.Thats unfortunately is not likely to change. Tue 02 Nov 2010 19:09:47 GMT+1 JPublic http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=94#comment194 What problems do small firms face?The EU, that's what. Tue 02 Nov 2010 19:07:36 GMT+1 london Stock Exchange http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=94#comment193 We can't get good people as it is? We certainly aren't going to hire substandard people just because you'd prefer us to?......Heard this Heathrow business school rhetoric too many times from incompetent employers? No one is indispensable..start offering to small business real incentives to train and take on ONLY the considerable skilled long term unemployed workforce.Granted this has never been done in the UK before..but..Buying abroad is pointless and uneconomic for UK PLC. Watch migrates run as soon as the recession starts leaving us with no skills at all in the UK. Tue 02 Nov 2010 17:53:27 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=93#comment192 189. At 3:45pm on 02 Nov 2010, tillyminto wrote:What would I do to help small companies?What we need right now as a county is employment so I would incentivise employment: as a small business owner I can keep the profits in my pocket or hire someone, who if I made the right hire and my market holds up will in 6 months or so start adding to my profit.How about the more people I employ & the more tax they pay, the less tax my co. pays?"That happens anyway - if you employ people, you make less profit, so you pay less tax.The problem with your idea is that most small businesses would happily employ people - they know that it is good for the company to grow. However, they are very cautious about doing so, because it is very hard/expensive to get rid of an employee if the market does not hold up, or if the employee turns out to be a waste of time.This is why a lot of small business owners would like employment legislation to be relaxed to some degree for very small companies. Small companies cannot afford any time wasters on their staff, and cannot afford lawyers' fees if one of those time wasters decides that they've been unfairly dismissed - so one way to protect the business is not to employ anyone...There are also the complexities of SSP, tax, NI, various Pxx forms etc. In a company with an HR department, they are no real problem, but when a company of 1 decides to take the plunge and become a company of 2, it's an absolute nightmare. The '1' can spend a large portion of their time handling the paperwork for '2', never mind training them up etc - so for many months the larger company can be less effective than they were before. Tue 02 Nov 2010 17:22:25 GMT+1 moreram http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=93#comment191 What problems do small firms face?The main problem is that they are small. Big fish eat smaller fish. How Tesco put thousands of butchers, bakers and fishmongers out of business buy selling meat, bread and fish at prices the family businesses couldn't compete with then raising prices once they went bust is a good example. That is capitalism for you. You either nobble the competition by fair means or foul or they nobble you. If you are in business you can't afford to be nice, that is why the system needs to be changed! Tue 02 Nov 2010 16:56:09 GMT+1 DibbySpot http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=92#comment190 Big businesses who refuse to pay their bills and insist on fixing the prices they accept. Ask any farmer if they like doing business with the major supermarkets.The other problem is the "approved list" system where large companies will only buy "if you are on the list".The problem of staff and other issues identified by the Noble Lord are a smokescreen to shield friends in big business. Tue 02 Nov 2010 16:30:34 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=92#comment189 187. At 2:57pm on 02 Nov 2010, adelaide wrote:Let us have some good industry back again like the steel industry, motor industry, engineering shops, ship building industry, The Pottories, aviation industry, weaving industry, etc and now we can add the green energy industry."The problem is that the only way to get that back to the UK is to reduce employment costs - ie reduce minimum wage and reduce employment legislation.Is that what you want?Unfortunately, without it, we are stuck in a situation where, increasingly, the only employment less academic people will have in the UK is in small companies offering services to other businesses/residents (eg cleaning, maintenance etc). Small business owners often pay themselves less than minimum wage, so that is the way around the minimum wage problem, and they aren't protected by employment legislation either. Tue 02 Nov 2010 15:52:38 GMT+1 tillyminto http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=91#comment188 I am very wary of the "brutally honest" review of strategies. Sounds like a way of dressing up cuts as free enterprise/survival of the fittest. Maybe it will largely be a bash the previous government exercise so harmless but pointless....What would I do to help small companies?What we need right now as a county is employment so I would incentivise employment: as a small business owner I can keep the profits in my pocket or hire someone, who if I made the right hire and my market holds up will in 6 months or so start adding to my profit.How about the more people I employ & the more tax they pay, the less tax my co. pays? Tue 02 Nov 2010 15:45:12 GMT+1 The Bloke http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=91#comment187 //109. At 7:43pm on 01 Nov 2010, steve wrote:Less than 20% of what we produce is exported, and only about 40% of that 20% is exported directly to other EU countries, the rest worldwide.-----------More than 50% of all UK international trade takes place with other EU countries.In common with every other major country in the World most trade is conducted internally.Consequently trade with the EU is vital.//It is important. But as a multilingual, manufacturing sector export sales and marketing manager - unlike the Guardian-spouting, monolingual non-productive types who tend to be the most vocal group supporting the EU - I can tell you that it is not a good reason for us to be in the EU, or for the EU to exist.The UK would do well to emulate many economies which are in the EU, notably Germany, Holland, the Nordics, maybe France. But it could just as easily copy Switzerland, which isn't in the EU.Then again, we absolutely should not copy or be in a body which links us so closely to the likes of Greece and the Baltics and eastern Europe, maybe even Turkey.The fact that east Europeans have moved here in such large numbers is a disaster already, and a good enough reason to leave the EU. Tue 02 Nov 2010 15:27:13 GMT+1 adelaide http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=90#comment186 Retail licences, property rent, employment rules and regs, health and safety guidelines, insurance, heating, lighting, tax; it goes on and on and it is very very expensive. How about the government grows up a bit and stops trying to turn us into a nation of shopkeepers!!!! Let us have some good industry back again like the steel industry, motor industry, engineering shops, ship building industry, The Pottories, aviation industry, weaving industry, etc and now we can add the green energy industry. Small business has a place but it cannot stand alone and we need to produce goods to sell to make money to buy!!!! Tue 02 Nov 2010 14:57:11 GMT+1 U14366475 http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=90#comment185 "169. At 11:43am on 02 Nov 2010, The Ghosts of John Galt wrote:119. At 8:28pm on 01 Nov 2010, MellorSJ wrote:righteoussasquatch wrote: "So if you cannot move to Switzerland then you will pay excessive corporation taxes in the UK. Fewer tax payers have to pay more and more for less and less services. Rats and sinking ship comes to mind!"So what's your solution? Increase taxes? Or decrease them to Swiss levels?--------------------------------------------------------------------How many times? THE UK HAS LOWER TAXES (overall) THAN SWITZERLAND! "That's because they have more Nazi gold than we have. Tue 02 Nov 2010 14:55:10 GMT+1 Confuciousfred http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=89#comment184 5. IR35. The initiative is to stop evasion (illegal)of the PAYE system and believe it or not the biggest culprit is, you guessed it, Her Majesty's Government including, yep right again, H M Revenue & Customs. Certain professional firms have made a fortune, making us scared of it, and giving poor advice about it. Avoidance (legal)is easy for anyone with a little intelligence to think outside the box.The biggest booste this government could give to business is to really provide government guaranteed loans, you know what I mean, you read about it but when you ask your bank about it, your enquiry is dismissed with a smile, as if you have just told a joke.There will be a second dip recession because small firms cannot obtain capital to invest or expand. Tue 02 Nov 2010 14:43:30 GMT+1 corum-populo-2010 http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=89#comment183 "What problems do small firms face"? 1) If you have a shop or service premises - sky high business rates.2) High parking charges by local authorities on employees and customers.3) Local authorities wasting £millions on 're-configuring' high streets.4) Huge supermarkets, not satisfied with out-of-town stores, open a high street franchise too.5) Those same supermarkets, ever discontent; take pharmacy, shoe repairs; dry cleaning; optical; post office etc. In fact the major supermarkets have been allowed carte blanche for too long.If this government continue to regurgitate the same old hypocrytical mantra about encouraging small and medium business and yet allowing councils to rip off SMEs; drive business and customers out of town and BLATENTLY ignore the toxic and rampant ROGUE 'elephants' in the room ...... let's all give up and give in to the monoliths. That way the Councils, the government, the banks, HMRC will have successfully wised up the geese to stop laying those golden eggs. Tue 02 Nov 2010 14:32:24 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=88#comment182 Just remembered another problem we have - WEEESmall companies will have the occasional requirement to scrap IT equipment. If I want to discard a broken disk drive, what can I (legally) do? I can't put it in the general refuse, that's not allowed. I can't take it to the local recycling centre as the waste is from a business. What I am required by law to do is find a commercial recycling specialist who can deal with IT equipment to take it away - that can cost about £40 for a single item or £400 for a few tons. Obviously this is much cheaper per item for large companies than for small ones. I understand why the costs are like this, so I'm not blaming the recycling companies, but why can't I simply take it along to the local recycling centre, and put it in the skip with the household electronic waste and just pay a couple of quid for the recycling cost?Rules like WEEE penalise small companies much more than large companies, and most small companies will end up breaking the law either deliberately or inadvertently (eg throwing away a broken calculator or mobile phone in the general waste).RoHS is similar - if I have an old lead-acid battery to discard, I have to go through unimaginable hoops to discard it legally as a business - for a small business who may have one to discard every few years (eg from emergency lighting or old UPSes) this is a big problem (unless you are happy to break the law and pretend it's domestic waste, or just throw it in the general refuse). Tue 02 Nov 2010 14:28:43 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=88#comment181 128. At 9:15pm on 01 Nov 2010, UKcerberus wrote:I launched my business on the 15th June 2009. I started on the roundabout to get any assistance that I could - both financial and practical. I failed. My experience - and it is MY experience - is that those organisations supposedly set up to help start-ups are really only leaflet distributors."Nothing changes - when I started my business in 1996, I had exactly the same experience. Basically I've never been back to BusinessLink or whatever it's called this week, because they knew nothing except how to hand out carrier bags full of leaflets - but they had nice offices paid for from my taxes.I'd suggest joining something like the FSB, and online forums etc. Small business owners are usually quite helpful to other small business owners (as long as you're not a direct competitor :) ) Tue 02 Nov 2010 14:08:09 GMT+1 wynneb http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=87#comment180 If you want the most radical solution then ........SCRAP VAT - replace with the system that Britain had before the EEC - Purchase Tax. This was much easier to administer, did not invlove costly legislation and tracking and reporting, wasn't subject to such opportunity for fraud and makes so much sense only a complete inbecile would consider VAT as an alternative. Tue 02 Nov 2010 14:04:10 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=87#comment179 136. At 9:51pm on 01 Nov 2010, politicalnewsmonitor wrote:If action is needed to re-invigorate the economy then attention needs to be given to every piece of legislation that attacks and undermines the efforts and jobs of those at the bottom end of the employment structure, if necessary creat a 'Start-up Safe Zone', a 'Nursery' environment wherein fledgling businesses could be allowed to grow before having to take on the full weight of employment legislation, taxation and the plethora of government interference which seems aimed at strangling everything at birth."I agree with that totally. I would actually say that for the very small companies they should be able to stay in that 'zone'For instance, is it better to have 3 people working, but not paying business rates and employers' NI, or to have them not working, and claiming JSA? Tue 02 Nov 2010 14:00:26 GMT+1 Confuciousfred http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=86#comment178 To my knowledge Lord Young has no experience of running a small business, therefore this appointment is useless. Come on Cameron, appoint someone who has relevant experience. Tue 02 Nov 2010 13:50:15 GMT+1 Paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=86#comment177 I run a small business - things we could do without:- Business rates - extortionate, and we get nothing for them, not even refuse collection. They are several times the council tax rate for a similar sized property.- 'Red tape' - eg health & safety, fire regulations etc. We have a small office, if there's a fire, we get out, there are only 4 of us, so we all know where everyone else is at any point in time. Why do we need lots of paperwork for this? - Employment legislation. This is heavily biased against employers, and small businesses especially suffer most - many settle disputes out of court, even if they are in the right, just because legal costs would be so high. Many small businesses make incompetent people redundant (at high cost) rather than sacking them, because of the potential cost of tribunals.- Government contracts - you have to pay to register to see government contracts (supply.gov.uk), there are COURSES you are recommended to go on to help you submit tenders for contracts. Why does it have to be so complicated? This all means that only the same big companies tend to get the contracts, and they overcharge massively - but because they can afford the time to send people on courses to learn how to fill the forms in, they get to do it.- Employment taxes. Exempt small companies from employers' NI for up to 5 employees, then taper down the exemption up to 10 employees, and small companies would be more willing to grow. Tue 02 Nov 2010 13:49:05 GMT+1 The Ghosts of John Galt http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=85#comment176 175. At 1:29pm on 02 Nov 2010, Rob wrote:I run a corner shop and some of the reasons small businesses struggle or fail might be: corporation tax, VAT, NI employer, NI employee, income tax, climate change levy, insurance premium tax, fuel duty, business rates and accountancy fees to work out all the above. Now ok some of these taxes are on the employees and not the businesses but they all have to be paid from income earned by the business. This might go some way to explain why Britain is such an expensive place to live.-----------------------------------------------But - don't want to point out the obvious, everyone pays these taxes and most countries have similar tax collecting regimes - yet if you examine the facts it appears the British find it far more 'difficult' and 'complex' than most Europeans and one has to wonder WHY, UK business is ALWAYS bleating about how 'difficult' it is to make a profit and demand continual concessions and assistance for the State - when most other European nations have quite healthy and vibrant SME sectors! I think its more to do with attitude of our SME owners and has nothing to do with tax regimes or 'red tap' at all! You lot are just NOT up to doing the job and want reward for your own failure! Tue 02 Nov 2010 13:46:55 GMT+1 Serendipo http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=85#comment175 For those asking for legislation on prompt payment: Such legislation already exists in the Construction Industry that outlaws "pay when paid" and sets time limits on payment with provision for interest on overdue payments. Does it work? No!It goes something like this. Small guy to big guy "You haven't paid me and I have a right to be paid for work I have done plus interest". Big guy to small guy "Do you want to work for me again?". Tue 02 Nov 2010 13:44:54 GMT+1 Critical Mass http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=84#comment174 I run a corner shop and some of the reasons small businesses struggle or fail might be: corporation tax, VAT, NI employer, NI employee, income tax, climate change levy, insurance premium tax, fuel duty, business rates and accountancy fees to work out all the above. Now ok some of these taxes are on the employees and not the businesses but they all have to be paid from income earned by the business. This might go some way to explain why Britain is such an expensive place to live. Tue 02 Nov 2010 13:29:55 GMT+1 Critical Mass http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=84#comment173 At 12:44pm on 01 Nov 2010, Lynn from Sussex wrote:No. 11 Business rates are not set by the local authority they are set by the Valuation Office Agency. They are collected by the Local Authority and passed to Central Government.Rateable values are set by the Valuation Office, the rating multiplier which determines how much is actually payable is set by central government. Tue 02 Nov 2010 13:08:45 GMT+1 Portman http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=83#comment172 Positive encouragement and support from Government. A level playing field. Simplified tax and other legislation. Support to create jobs if jobs is what we are going to need. Positive discrimination and financial supplements for some businesses such as local shops and community assets. Support with employment law outcomes where it impacts negatively on small scaled business.If we need job creation then we need creative businesses but we also need British business that cares about Britain as a home not simply a rest stop on the global journey.The raw market serves only money and money does not serve the nation nor the people who it supposedly contains within its borders. Tue 02 Nov 2010 13:08:09 GMT+1 RG http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=83#comment171 Anyone who really believes any government will cut red tape, lives in cloud cockoo land - the fundamental reson for red tape is the Government would feel exposed, naked with out. Governement has to create red tape, just to keep its eye on things- but basically because it firmly believes that all business are crooks and with out red tape- they the government woul be robbed and loose out. Pigs will fly before the government will reduce red tape Tue 02 Nov 2010 12:59:05 GMT+1 Carl Rigby http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=82#comment170 Jeggy @ 113 Wrote :"I have experienced a number of times where UK employees (though supposedly well educated) spoke poorly, failed to right a decent report, had poor interpersonal and business skils and YET they still demanded salaries exceeding 30k a year. "I take it you're on less than 30k yourself then? Businesses can't expect to externalise all their social costs. They are part of the same society as everyone else. Importing your own 3rd world slaves is so two-centuries-ago. Tue 02 Nov 2010 12:51:12 GMT+1 Michael Lloyd http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=82#comment169 Writing from experience (many years ago) I suggest that the biggest problem is unfair costs heaped onto the small business. I once ran a shop; it was in effect a three-bedroom semi-detached house, the "front room" of which was the large, open selling area - the shop. The rest of the premises were purely domestic.I found that my telephone line cost more because it was a business. Why - it was just a length of wire, regardless of the use to which it was put. My refuse collection service was severely limited - why, because 99% of it was domestic refuse, the only "trade waste" was a small amount of packaging materials, yet I was treated the same as a giant industrial complex. My bank would have charged extra to operate my account had I told them I was in business, which I wisely omitted to do. Why? The transactions were the same, they just wanted their slice of the action. The same applies throughout - higher costs for insurance, etc. Luckily, I closed the business and sold the premises before the advent of the so-called National Non-domestic Rate, but I fail to see why I should have been taxed on the same basis as, say, ICI or British Leyland. A small shop is hardly "industry."The fact was clear - as soon as someone knew you were in business, up went all the costs for no valid reason.I would never even contemplate starting or running a small business in this country.Then there was all the competition from the major "stores." Although I could actually undercut some of these on selected lines, people would rather drive a mile and a half to a "store" to get something that was reduced, even though they could have walked round the corner to me and bought it for less. The fact is that the cards are stacked against small businesses and always will be. Starting one from scratch is a mug's game. Tue 02 Nov 2010 11:44:49 GMT+1 The Ghosts of John Galt http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=81#comment168 119. At 8:28pm on 01 Nov 2010, MellorSJ wrote:righteoussasquatch wrote: "So if you cannot move to Switzerland then you will pay excessive corporation taxes in the UK. Fewer tax payers have to pay more and more for less and less services. Rats and sinking ship comes to mind!"So what's your solution? Increase taxes? Or decrease them to Swiss levels?--------------------------------------------------------------------How many times? THE UK HAS LOWER TAXES (overall) THAN SWITZERLAND! http://www.photius.com/rankings/tax_burden_country_ranks_2009.htmlIn fact in relation to 'corporation tax' SMEs pay far lower rates than in Switzerland - IN the UK - SME small profit rate is 21% reducing to 20% next year and main rate is 28% reducing to 27% next yearSwitzerland - a far more complex tax system - includes a property tax, corporation tax, profit tax, capital tax, federal tax - Switzerland has a "classical" corporate tax system in which a corporation and its owners or shareholders are taxed individually, causing economic double taxation.And as the link illustrates corporation taxes amounts to 27.1%So if you are an SME in UK your corporate tax rate is much lower than in Switzerland! Tue 02 Nov 2010 11:43:33 GMT+1 ady http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=81#comment167 --What problems do small firms face?--For small firms, the PROBLEM is government. Tue 02 Nov 2010 10:55:47 GMT+1 AndyS http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=80#comment166 If Cameron and the Tories are so concerned with the economy, why has it taken until now to try and find out what the problems are small business's face. Considering there are cutbacks right across government, why then employ one of his buddies as a "enterprise tsar"?All this does is delay decisions until next year, then they can say we need to do this, or need to do that. It's obvious isn't?What is lacking is support from the banks not necessarily by giving money but by supporting businesses so that they don't go under. Confidence in consumers so they go out and spend.The problem is that as the BBC reported the CIPD says the cuts the government are going to take are going to have a detrimental impact on all of us. And to expect the private sector to pick up the pieces is farcical.Its funny, I stated more or less the same a few months ago, way before any suggestion of how much the cuts are going to be.So you don't need a Tzar just some plain old common sense. Tue 02 Nov 2010 10:21:23 GMT+1 Mark Evans http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=80#comment165 In 29. At 1:10pm on 01 Nov 2010, Rational Viewpoint wrote:As a small subcontractor that ultimately does a reasonable amount of work for the public sector the problems we face are related to Government procurement and payment times.Government contracts out to subcontractors rather that do work itself mainly because it can then distance itself from the outcomes if need be. There is loads of work we do that could easily be done in-house. It might take a bit longer, but often doesn't need any particular skill and the Government body would do well to take the opportunity to learn first hand about an issue rather than read a report about it.Anyway, Government departments, for ease of contracting, like preferred suppliers. Companies who can pass a pre-qualifying process. Usually, these are large, generalist consultancies. If your not on a pre-qualified list or are not a preferred 'panel' supplier, you can't bid. What ends up happening is that the large contractor gets the majority of business. Due to a naive client (the Government department involved) its relatively easy for a large contractor to convince of the skills they have to do the job.Interestingly even if they have failed to deliver in the past. Maybe there's quite a bit of "schmoozing", wineing and dineing, etc involved here. Then, being very close to the client and knowing the system, they win the work. The lead consultant does a bit of the work but quite often positions itself as the overseer of subcontracted work put out to others, like me. The value as they perceived it is to protect the client's interest - a role for which they take a considerable chunk of the revenue from the project.Naturally, as neither client or lead consultant necessarily understands the initial brief, it sometimes doesn't make sense. But there is no direct link made possible between the subcontracted expert and the ultimate client - why would the lead consultant want this to happen... Its very lucrative being the gatekeeper.Even middleman is going to want a cut. It's kind of ironic that there are plenty of retail companies with the business model of reducing middlemen. Whereas contracting rules for central and local government can have the effect of increasing them.Work is done, usually to a much tighter timescale than the lead consultant has been given, to allow him to pad out the report and sticker it up under his own name. At the same time, the subcontractor, who has delivered the majority of valuable content to the end product, is paid a sum considerably less than that of the lead contractor. If the end result isn't what the ultimate client wanted, payment is then typically in dispute. If the client had a preconceived outcome in mind and specced the project wrongly, its rare they accept they perhaps asked the wrong question, and the lead consultant wasn't sufficiently expert at the point of negotiating the work to realise the question was wrong.Nevertheless, the end client pays, maybe on time.. who knows... The lead consultant sits on invoices from the subcontractor as long as he likes, sometimes quibbling over insignificant issues, particularly if the end client has penalised them for some reason.... margins have to be protected you understand. As a small business, there is no transparency over whether the lead consultant has been paid or where the delay really is.It's probably to the advantage of the lead contractor if the subcontractor's business collapses. Since they can sit on the money for even longer quite possibly even winding up paying less in the end. It's probably not in the interest of a subcontractor to try suing. Even if they win they are likely to end up blacklisted. Tue 02 Nov 2010 10:16:05 GMT+1 North Briton http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=80#comment164 1. At 10:37am on 01 Nov 2010, piscator wrote:The barriers to small business are always the same. It's not red tape, that is just a bit frustrating, it's having an opportunity, having the cash, and having elbow room. The biggest problem is having some common sense. There are a great many people out there just looking to suck your redundancy money out of you with a very painful needle. To be cynical, one could suggest the whole scheme is just a way for large firms to get the lump sum back from the unemployed.As someone who wasted my redundancy money in starting a business in the 80's I agree. The government were not the cause of the business failing although the tax gathering departments do everything to hinder economic working. Most of the regulations we had to comply with made sense for the safety of the public and staff and were only a nuisance because they required money and time but were not the cause of failure. We did OK for 2 yrs and reinvested profits on equipment. The beginning of the end was the local council introducing double yellow lines and parking charges plus Tesco opening about a mile away. Although our prices were little more than half Tesco the threat of parking fines plus the Tesco one stop model was too much. The loss of two thirds of customers was the start of end. Redundancy money gone and more besides. I am afraid "piscator" is right there are far bigger threats than government regulation to the small business. Tue 02 Nov 2010 10:08:40 GMT+1 intbel http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=79#comment163 "What problems do small firms face?"** Government interference. Tue 02 Nov 2010 09:53:38 GMT+1 JohnH http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=79#comment162 What problems do small business's face, well for a start they have the problem of 'Big Business' using the excuse of harm to 'Small Business' to pass legislation that only helps the big guy's and harms the small one's and Joe Public.Anyway why would anyone want to start a small business? I am a professional, and during periods out of work it has been suggested to me that I start my own business. My response is "who will pay my mortgage during the 2 year start up period?"I did have a small consultancy doing teaching but only for a year, and part-time, and only so I could be paid. Friends who have started their own business have ALWAYS had a partner to pay the rent.Every time I read a newspaper story about some self-made businessman/woman I always look for the help they got to start up. The guy who started easy-jet got £5 million from his family. I read about one former printing executive who started his own business. He walked out of the dole office when he had to first sign on and 'borrowed' £100,000 from his father-in-law for his start-up.As long as the banks do not provide small businesses with proper loans, but instead give them overdrafts which are easier to control and withdarw, then small businesses will suffer. As long as we do not have the payment laws they have in Germany, where a company has 30 days to pay an invoice and then can be charged 2% above bank rate until they do.As long as we have 'businessmen' who are little more than robbers and thieves in good suits, who believe that their new car is more important and necessary than paying their bills. As long as we have the poor deluded amateurs who dream of running their own business, of 'being the boss' without the necesarry mind-set and business-savvy required to succeed. Until these problems are addressed, the government's return to small-is-best answer to the nations unemployment woes will fail as they have done on every other occasion they have been tried, and failed. Tue 02 Nov 2010 09:49:58 GMT+1 The Ghosts of John Galt http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=78#comment161 Are you a small business owner? Are you swallowing the latest rhetoric? Do you listen daily to the telescreen - accept the fabulous statistics pouring out, declaring everything is more, everything better, greater, improving......Is Cameron your personal Big Brother hero and saviour? Do you have a persistent 'feeling', a sense in your stomach, and in your skin - a sort of protest, a deep feeling that despite the rhetoric of a 'shiny new attitude', you have been, and will continue to be cheated of something that you had a right to? It's true, that no memory exists of anything greatly different. In any time one could actually remember - there had never been quite enough - it appeared it was always the natural order of things - So WHY should any 'feel' it to be intolerable unless one had some kind of ancestral memory that things had once been different, that things were once much better than today? Poo Bags Tue 02 Nov 2010 09:48:27 GMT+1 Mark Evans http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=78#comment160 In 14. At 12:27pm on 01 Nov 2010, Ed wrote:I run a small market research agency. 5 years ago we used to conduct many public sector contracts but unfortuantely success in winning these now has been made impossible by their procurement procedures. These procedures have been developed to minimise risk rather than maximise quality or value. Small business can deliver a better result, usually at a lower cost in a shorter time period. In addition it has been recognised that small business contributes more tax. Unfortunately procurement procedures do not recognise these benefits and do everything to screen out small suppliers.It tends not help that the process of bidding/becoming a recognised supplier can be very expensive in itself. Which means that any bit will be 3-4 times the cost of the bidding process before even considering the costs of doing the work. This is a game only "big" companies can play. Tue 02 Nov 2010 09:30:36 GMT+1 Andrew Lye http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=77#comment159 My brother won't take on a member of staff to help him in his newly set up business because of all the employment laws.He works all hours of the day, 24/7.If small businesses are to be the saviour of the expected job losses in the public sector, those of us who are self employed, need help as we are all scared off by the law and the claim culture when anything goes wrong. Tue 02 Nov 2010 09:26:11 GMT+1 Sick_of_Layabouts http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=77#comment158 Hilarious - do away with a few ombudsmen and bring in a few more tsars. This coalition government keeps 'taking from Peter to pay Paul' in all its policies and is an utter joke. What use is this ridiculous tsar? Oh yes, he will get paid by the tax payer and laugh all the way to the bank while everyone else does all the work for him. Tue 02 Nov 2010 09:19:33 GMT+1 J Workerbee http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=76#comment157 138. At 10:07pm on 01 Nov 2010, Spinonthis wrote:Cash flow is a Major problem for small businesses.It is a disgrace the way small businesses are treated in regard to invoiced payments. Legislation should be brought in to MAKE companies pay within 30 days of invoice and if they do not then they should be fined, 2 x the value of every invoice.----------------------Amen to that! I just hope someone is listening!Has anyone else had to deal with retospective discounts for next years work yet? Be warned! Tue 02 Nov 2010 08:31:50 GMT+1 Daisy Chained http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=76#comment156 Given the latest analysis of Government financial policy by CIPD there is no future for small or moderate UK businesses. The 'big boys' will survive but it's 'goodnight everyone else'.Start listening to Professor Philo Messrs Cameron, Clegg, and Osborne. Tue 02 Nov 2010 08:23:24 GMT+1 ProfPhoenix http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=75#comment155 What problems do small firms face? An answer based on experience in trying to set up a small firm during the original Thatcher misrule is the same under her imitators- the main problem is the government. This is what the Americans are trying to tell their government. Tue 02 Nov 2010 07:38:09 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=75#comment154 spinonthis wrote: "It (for me) was other contractors (big boys) and businesses that caused the problem.I am still of the mind set that payments should be made within 30days and enforceable, I have no idea how, but that is for the Gov' to decide?"That would be difficult to enforce. One US client of mine has a 45-day payment policy from acceptance of the invoice. I have to chase it around until I'm sure both that the person who signs off on the work and that he's passed it on to accounting. (Grumble!)(OTOH, an Australian client pays up in 14 days, never any hassle.) Tue 02 Nov 2010 03:30:03 GMT+1 Spindoctor http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=74#comment153 Quote "143. At 10:46pm on 01 Nov 2010, MellorSJ wrote:To those saying cash flow is a major problem, you are right on.This applies whether you small or not. In fact, as you get bigger the weekly/monthly outflows are larger and it's even more important that you get the money in on time.I once had a large-ish contract for the DoD that was payable 45 days, but they'd pay early if we gave them a sizeable discount. Given that it would have taken more time than we had to get a bridging loan (this was in the days when you could get one) and payroll--and therefore peoples' mortgages etc--was looming, we had no choice. " /end quoteFunnily enough Gov' contracts local and national were never a problem for me getting paid. they have a 30 day policy and if they fail to meet it lose there bonus payments, it also affects departmental budgets, so the tend to be on time unless there is an error, but even then they have telephoned me to get clarification etc..It (for me) was other contractors (big boys) and businesses that caused the problem.I am still of the mind set that payments should be made within 30days and enforceable, I have no idea how, but that is for the Gov' to decide? Tue 02 Nov 2010 02:43:54 GMT+1 Bradfordbelle http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=74#comment152 Sounds hopeful, it will just depend on how much flesh there is on this chicken! Just how much will they really deliver? Tue 02 Nov 2010 02:10:58 GMT+1 Phosgene http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=73#comment151 Tesco is a problem for every independent on the high street.Almost every penny you spend in most big supermarkets ends up outside your area, whereas smaller firms keep the wealth local.Spend local: keep the prosperity local. Tue 02 Nov 2010 01:13:57 GMT+1 Superlad http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=73#comment150 "What problems do small firms face?"The bankers for one thing, evidently they don't tend to favour small businesses, or families for that matter, in fact unless you already have the money to begin with, you're pretty much rogered!! Tue 02 Nov 2010 00:13:08 GMT+1 matt-stone http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=72#comment149 This post has been Removed Tue 02 Nov 2010 00:01:08 GMT+1 U14366475 http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=72#comment148 "137. At 9:56pm on 01 Nov 2010, MellorSJ wrote:Dole Warrior writes: "I haven't been dismissed - I was making it all up."Well! That's a relief!"Indeed. Must be why the Dow Jones is up. Mon 01 Nov 2010 23:47:55 GMT+1 UK in CONDEM DK http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=71#comment147 Many people here saying the buisnesses should pay / get paid by their suppliers and such, in reasonable time (30 day terms) and the like.I agree - this would be a good bit of legislation... oh, sorry, hang on, would that not be governmental interference and more red tape? Mon 01 Nov 2010 23:35:12 GMT+1 Cobbett_Rides_Again http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=71#comment146 The best advice I could give to a small firm (or indeed to an individual) is never, ever borrow money - espcially not from a bank. There is no such thing as "friendly finance" or "a good relationship" with a bank, only ruthless exploitation. Mon 01 Nov 2010 23:34:34 GMT+1 Matt http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=70#comment145 142. At 10:45pm on 01 Nov 2010, ruffled_feathers wrote:Is an enterprise tsar anything like a quango, but simply comprised of one?Is there a small business which sells terminology, similar to company formation agents which can sell off-the-shelf companies with the most ludicrous names?______________________________________Nah we just directly steal americas ideas Mon 01 Nov 2010 23:15:03 GMT+1 John http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=70#comment144 Small firms face a whole range of problems, many of which are serious otherwise half of them wouldn't go bust within three years.The government needs to give them chance to get off the ground, not necessarily with cash but with time to pay council bills, VAT, corporation tax etc. At the end of the day, its the entrepreneurs who take the full risk for a business yet as soon as its doing well, the state helps itself to bigger and bigger chunks of his/her money.Starting a business is a gamble, but the odds are permanently against businesspeople, they risk losing everything (and more) but stand to gain only a percentage of what their business makes. Something needs to be done to redress the balance. We need these business for jobs, exports, development, etc, etc, yet not a lot is being done to help and a lot is being done to hinder them. Mon 01 Nov 2010 23:04:01 GMT+1 labsnark http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=69#comment143 Corporation tax - what can only be described as the Government's way of removing the very means by which a small company can grow larger. Large multinationals hardly pay corporation tax because they an transfer their profits into non-taxable activities. Paying the tax is left to small companiesAll in all, it's pretty much a parallel with personal taxation. Mon 01 Nov 2010 22:52:13 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=69#comment142 To those saying cash flow is a major problem, you are right on.This applies whether you small or not. In fact, as you get bigger the weekly/monthly outflows are larger and it's even more important that you get the money in on time.I once had a large-ish contract for the DoD that was payable 45 days, but they'd pay early if we gave them a sizeable discount. Given that it would have taken more time than we had to get a bridging loan (this was in the days when you could get one) and payroll--and therefore peoples' mortgages etc--was looming, we had no choice. Mon 01 Nov 2010 22:46:40 GMT+1 ruffled_feathers http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=68#comment141 Is an enterprise tsar anything like a quango, but simply comprised of one?Is there a small business which sells terminology, similar to company formation agents which can sell off-the-shelf companies with the most ludicrous names? Mon 01 Nov 2010 22:45:22 GMT+1 Billythefirst http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=68#comment140 138. At 10:07pm on 01 Nov 2010, Spinonthis wrote:Cash flow is a Major problem for small businesses.--------------------------------------------------------------------------------Worked in a small business where this was exactly the case - the way the supermarkets treat their suppliers is indicative of the treatment that small businesses endure.Big business debtors dictate what you receive and when you receive it and if you don't like it - tough! Mon 01 Nov 2010 22:23:38 GMT+1 David Hazel http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=67#comment139 The single most important step would be for government organisations, and individual civil servants, to understand that there are such things as companies with fewer than 50-odd employees. There has been a mind-set within government, and indeed within many other organisations such as the EU, that fails to understand that you can have a company of just one employee, in the UK.Paying bills in less than 30 days is neither here nor there, because those are the standard terms that any company faces when selling to another company. The bureaucratic mindset which fails to acknowledge the existence of very small companies is a much bigger hurdle to doing business with government organisations. Mon 01 Nov 2010 22:21:38 GMT+1 Billythefirst http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=67#comment138 #132 Rant: I've heard the Public Sector endlessly and unjustly criticised for all manner of ills but smothering your ideas?No doubt Labour was investing in state of the art stealth smothering equipment to prevent the emergence of entrepreneurs. Mon 01 Nov 2010 22:14:02 GMT+1 Spindoctor http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=66#comment137 Cash flow is a Major problem for small businesses.I know of what I speak, as an electrician who worked on a self-employed basis on a LOT of contracts I saw it everyday, small operators (one man bands) working all the hours and laying out expenses to get a job done, but when it came to payments any and every excuse in the book was used to avoid payment, thus the poor guy who has worked all week or longer was faced with no wages/payments and had to rely on his own resources to continue working an living, and paying his one or two employees.I was once witness to a situation where a main contractor had a written policy (supposedly secret internal) that they would delay contractors payments such that a given percentage would go bust and then payment would not be made, or when it was, it was at a reduced rate to his creditors/suppliers.It is a disgrace the way small businesses are treated in regard to invoiced payments. Legislation should be brought in to MAKE companies pay within 30 days of invoice and if they do not then they should be fined, 2 x the value of every invoice. Mon 01 Nov 2010 22:07:22 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=66#comment136 Dole Warrior writes: "I haven't been dismissed - I was making it all up."Well! That's a relief! Mon 01 Nov 2010 21:56:17 GMT+1 politicalnewsmonitor http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=65#comment135 Back in the mid-eighties, I started a small business which, within a few years, was employing 25 people. As with most small enterprises, most of the money the business made went straight to banks, accountants and just about everybody but those engaged in the operation. However it did succeed and continues to this day - one of the few to survive. Start up in those days was extremely difficult, in todays climate it would be all but impossible to achieve what we did then. Every piece of legistlation and taxation that has been introduced in recent years has seemingly been aimed at making the operation of a business more and more difficult. One has to ask why? Doesn't the economy depend on business to generate wealth? So what is the ultimate objective in attacking the source of the nation's wealth, the source of the nation's employment?Certainly, as the last government seemed to think, jobs can be created in the public sector but by proportionately decreasing the size of the sector creating the money to pay for those jobs, eventually the whole structure will collapse - you can't stand a pyramid on it's thin end !If action is needed to re-invigorate the economy then attention needs to be given to every piece of legislation that attacks and undermines the efforts and jobs of those at the bottom end of the employment structure, if necessary creat a 'Start-up Safe Zone', a 'Nursery' environment wherein fledgling businesses could be allowed to grow before having to take on the full weight of employment legislation, taxation and the plethora of government interference which seems aimed at strangling everything at birth. Mon 01 Nov 2010 21:51:53 GMT+1 Dole Warrior http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=65#comment134 133. At 9:38pm on 01 Nov 2010, MellorSJ wrote:Dole Warrior responds: "Well, there you go !"I do?I repeat: I don't understand in what way your dismissal was in any way unfair.I haven't been dismissed - I was making it all up.Bleeding 'ell. There's one born every minute. Mon 01 Nov 2010 21:46:25 GMT+1 Billythefirst http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=64#comment133 #126:A valid point - seems to have been overlooked by many. Mon 01 Nov 2010 21:45:35 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=64#comment132 Dole Warrior responds: "Well, there you go !"I do?I repeat: I don't understand in what way your dismissal was in any way unfair. Mon 01 Nov 2010 21:38:52 GMT+1 Lord Rant http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=63#comment131 small businesses face many problems some from within the UK and many from overseas.The cost burden of the public sector is the greatest problem of all. it absolutely smothers new ideas and business. Public sector cost is like employing one or two extra employees every week before a business even starts weekly work.Add those extra costs to your production costs and your at a serve trading disadvantage.. Compare those costs to imported goodss and your business is a non starter... Mon 01 Nov 2010 21:28:17 GMT+1 John Campbell http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=63#comment130 Guess the really big problem small companies face is when they start to expand.We cannot possibly have a small company taking business away from big companies,Can we?Taking competition a step too far.Much better to absorb such companies into your global empire.Stop the competition.The same attitude prevails in all Political Parties.In all Newspapers.And in all of us..Never wrong,always right..just believe the message..keep on selling it.It is a free market.Provided you have the finance,to stay free. Mon 01 Nov 2010 21:26:00 GMT+1 Dole Warrior http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=62#comment129 120. At 8:38pm on 01 Nov 2010, MellorSJ wrote:Dole Warrior writes: "The company suddenly decides it needs to save a few quid to improve profitability to shareholders and I am on the dole as a result. In my view it is plain that the "redundancy" was unfair dismissal. Is it all that wrong to stand up for yourself when you are being shafted for the benefit of shareholders ?"I don't understand.You are, from what you say, surplus to requirements. In what way is that "unfair dismissal"?Well, there you go !You should know by now that no-one actually reads any of this dross. Mon 01 Nov 2010 21:23:29 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=62#comment128 RitaKleppmann wrote:"1. Too few weathly investors (probably taxed to death)2. A widespread I-don´t-know-if-we-can-do-that attitude.That´s why my son has set up his IT business in the USA."Your son is wise, sad to say.You forgot 3. A widespread I-m-being-exploited! attitude.PS Congratulations! Mon 01 Nov 2010 21:21:58 GMT+1 GBcerberus http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=61#comment127 I launched my business on the 15th June 2009. I started on the roundabout to get any assistance that I could - both financial and practical. I failed. My experience - and it is MY experience - is that those organisations supposedly set up to help start-ups are really only leaflet distributors. The people I spoke with had less commercial experience than I have - they were just civil servants operating the machine, so I could come away from one of our "development meetings" with another wad of bumf, and nothing else.The other sort of "help" is in trading abroad. Firstly, you won't get any help until you have been in operation for at least a year. Argue that one if you wish, but I want my business to grow in any and all directions.The usual patter from these people is that yes, I can go to say, a trade show in China, where I may have a high degree of success, and yes, I can get financial assistance - but it's to the tune of pound-for-pound. So, I it will cost me say, £6000 to go to that trade show, which is a huge amount of money for a SME.Back home, I can get nothing out of anyone that doesn't involve either me paying up front, or giving away half of my company "dragon" style.Oh, and the final kick-in-the-nuts?On the 17th June 2009 - 2 days after I registered the limited company, I received my package from the tax gang. The UK establishmnent won't part with it, but they are so very, very efficient at snatching it from you. Mon 01 Nov 2010 21:15:15 GMT+1 RitaKleppmann http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=61#comment126 1. Too few weathly investors (probably taxed to death)2. A widespread I-don´t-know-if-we-can-do-that attitude.That´s why my son has set up his IT business in the USA. Mon 01 Nov 2010 21:06:49 GMT+1 BBConservatives http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=60#comment125 The biggest problem soem smal firms face is the incorrect belief that theie business actually is viable and is in demand at a reasonable price for its product / service.If a small firm can not afford to provide proper pension arrangaments, pay the minimum wage and offer all that is legally expected in terms of welfare and health and saftey, WITHOUT being propped up by tax breaks paid for by WORKING people, then what do you have?A flawed business model.A reality check for some and a re-evaluation I think would help many to realise their 'dream' is really a nightmare in waiting.Get real - thats all. Mon 01 Nov 2010 21:03:05 GMT+1 Johns the Man http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=60#comment124 David Cameron has appointed a new enterprise tsar with a brief to cut red tape for small businesses. Will this appointment help firms?My first observation here is that someone else is now on Camerons payroll, as if there isn't someone else in the cabinet with a couple of brain cells to do this, as it is possibly another useless money gobbling enterprise for one of the 'Old Boy Network' brigade.My second observation is money grabbing banks, not keen now to lend to anyone, but very keen to rip you off or call in any loan at a moments notice even if you have never run up a debt!My third observation is the big conglomerates don't want any competition and will do everything they can to wipe you out.So No, it doesn't impress me one little bit. Mon 01 Nov 2010 21:01:25 GMT+1 JPublic http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=60#comment123 What problems do small firms face?The same as every other organisation under Labour - over-regulation, bureacracy and high business taxes / rates.At the same time, Labour also created a vast industry of non-jobbers and 'Officials' and cynically called it 'job creation'.I knew a person working for one high-tech company who gave their job up due to the growing mountain of Health & Safety laws and regulations that they were no longer sleeping at night due the the worry. The cost to the company itself just being past on to the end user ie: General public.That particular job is now carried out by two people - non-productive people at that and the cost just being passed on into the end product ie: to the General public in higher prices. Mon 01 Nov 2010 21:00:50 GMT+1 U14366475 http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=59#comment122 "107. At 7:34pm on 01 Nov 2010, AnSME wrote:Unfortunately SMEs and self-employed specialists in Information Technology have already had their contracts terminated or not extended in order to save money in-year within Government. The large IT companies have not been affected. "Welcome to the real world, it's called doing business, get use to it. Mon 01 Nov 2010 20:49:16 GMT+1 paul http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=59#comment121 We need banks to lend money. Clients to pay bills promptly.Councils to lower their business rates and stop sucking up to Large firms such as Tesco's and slaughtering the high streets.But I'm afraid George won't give you any of this. Mon 01 Nov 2010 20:49:12 GMT+1 U14366475 http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=58#comment120 "106. At 7:34pm on 01 Nov 2010, steve wrote:What problems do small firms face?Monopolies."Name some Monopolies, other than the water companies and train companies.------------Oil companies are not monopolies but when you can't see more than 1p between the prices they all charge on the forecourt they effectively behave like one.The same applies to utilities, rail and to a slightly lesser extent major supermarkets.These amount to around 75% of the average families weekly spend"Indeed, there are very few Monopolies.Petrol companies are allowed to act the way they do because of spineless Government, as do the utility companies, but this is another issue altogether. Neither have been in competition with small business, it's always been big business.Supermarkets are a good example of consumer pressure. The fact is that there are so many is good news for the consumer because there is competition, so they can hardly be seen as monopolistic.I have no idea where you get that "75% of the average families weekly spend" on the above. Which seems a bit different to Government figures http://www.statistics.gov.uk/statbase/product.asp?vlnk=361 Mon 01 Nov 2010 20:45:24 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=58#comment119 Dole Warrior writes: "The company suddenly decides it needs to save a few quid to improve profitability to shareholders and I am on the dole as a result. In my view it is plain that the "redundancy" was unfair dismissal. Is it all that wrong to stand up for yourself when you are being shafted for the benefit of shareholders ?"I don't understand.You are, from what you say, surplus to requirements. In what way is that "unfair dismissal"? Mon 01 Nov 2010 20:38:45 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=57#comment118 righteoussasquatch wrote: "So if you cannot move to Switzerland then you will pay excessive corporation taxes in the UK. Fewer tax payers have to pay more and more for less and less services. Rats and sinking ship comes to mind!"So what's your solution? Increase taxes? Or decrease them to Swiss levels? Mon 01 Nov 2010 20:28:41 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=57#comment117 Kuradi Vitukari wrote: "Again, no company in their right mind would not opt for cash accounting, it's a real no brainier."Could you help me understand this, please?First off, are you referring only to VAT or something else?Then, why is this so bad? It seems peculiar to pay tax on something that has been invoiced, but for which you have not yet seen the £. (Or have I misunderstood the meaning of the term?)Thanks. Mon 01 Nov 2010 20:25:14 GMT+1 Dole Warrior http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=56#comment116 "74. At 3:58pm on 01 Nov 2010, PETERJMARTIN wrote:The UKs employment and discrimination laws work against employment. Anyone taking an employer to a tribunal should have to pay a bond of £1,000. If they lose the case the lose the Bond. "I have recently been made unemployed. I had good appraisals, recently got promoted, made twice my salary for the company and never put a foot wrong. The company suddenly decides it needs to save a few quid to improve profitability to shareholders and I am on the dole as a result. In my view it is plain that the "redundancy" was unfair dismissal. Is it all that wrong to stand up for yourself when you are being shafted for the benefit of shareholders ? Mon 01 Nov 2010 20:18:49 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=56#comment115 Nice rant from Frank Kirkton: "Why all this fuss and bother over "Small business" ... Enough of these people."OK, Frank. So who do you think will provide the employment?Please be specific. Mon 01 Nov 2010 20:16:19 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=55#comment114 L Hillman wrote: ""What problems do small firms face?"Government."An excellent post, with the benefit of pith, precision and accuracy. Mon 01 Nov 2010 19:58:48 GMT+1 ady http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=55#comment113 Will this appointment help firms?In a word. No.They do talk a good game though...talk lots...do owt.I AM surprised more people haven't cottoned on to the constant smokescreening which governments indulge in. Mon 01 Nov 2010 19:58:43 GMT+1 Jeggy http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=54#comment112 A comment to those who 'complain' about the use of immigrants or non-UK/EU people: in the global economic world it is time for the UK to grow up. I have experienced a number of times where UK employees (though supposedly well educated) spoke poorly, failed to right a decent report, had poor interpersonal and business skils and YET they still demanded salaries exceeding 30k a year. Our culture has continued to support the poorly skilled and those who lack the capabilities for success, and further supports the 'entitlement culture' so that many of these feel they have a right to a middle class of above lifestyle. My comments are likely to be misunderstood, I do not support a class society. I merely point out that expectations must be managed more effectively and that if we need expertise from elsewhere, then we must be able to do so. Mon 01 Nov 2010 19:56:14 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=54#comment111 piscator wrote:I find it remarkable, but unsurprising, that very few people in small business ever say anything positive that would increase trade, or increase the standard of living of their employees. It's all cut, subsidise, deregulate, stop tax, provide free money and everlasting loans, make the government provide all supplies, services and training, remove any job and safety protection, bring in more cheap labour.People really should be asking themselves why they are involved in small business if it is so unprofitable as to not provide enough money to pay tax and NI, training, decent wages, good conditions and social advantage.Perhaps they should be applying for cushy jobs with gold plated pensions."Now why didn't I think of that? Mon 01 Nov 2010 19:53:02 GMT+1 MellorSJ http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=53#comment110 Paul J Weighell wrote:@LeftieAgitator "What does the small business want? Low or Minimal taxation, exemption from Health & Safety legislation, to be allowed to pay their employees £1.68 an hour while drawing £100k a year for themselves."As the employer is the one taking all the risks, finding all the capital, paying all the bills and taxes, including the employer's part of the employees' own NI, there is nothing wrong with that approach.If you want to continue to tax and regulate employment abroad then feel free to eat your mad lefty dreams and starve as a result."Hear, hear!! Mon 01 Nov 2010 19:51:19 GMT+1 Jeggy http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=53#comment109 It surprised me to see so many negative comments and supposed 'intelligent' suggestions for the government. Those in small business have chosen to do so. In this culture of 'entitlement' it is little wonder we have the laws and regulations we do - I have seen too many employees get the tough stick of an employer. Yes there has to be a balance, but if you choose to open a small business then do and pay your way. It may not always be fair, but if you dn't like it, then I suggest you join a company and do your 9-5 like others. Mon 01 Nov 2010 19:51:05 GMT+1 steve http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=52#comment108 Less than 20% of what we produce is exported, and only about 40% of that 20% is exported directly to other EU countries, the rest worldwide.-----------More than 50% of all UK international trade takes place with other EU countries.In common with every other major country in the World most trade is conducted internally.Consequently trade with the EU is vital. Mon 01 Nov 2010 19:43:03 GMT+1 righteoussasquatch http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=52#comment107 Remember the playground bully who would encourage you to part with your pocketmoney! Maybe he became a tax man?On Radio 4 we were told the Allianz Boots moved to Zug in Switzerland and cut its corporation tax to a BBC estimated 3%. No wonder the government has no money - private equity has taken our industry overseas to tax havens to migrate the taxes into their own pockets quite legally! So it is the bankers and private equity TOGETHER that has ruined our economy under Labour. I don't think Labour had a clue what was happening, bless 'em.So if you cannot move to Switzerland then you will pay excessive corporation taxes in the UK. Fewer tax payers have to pay more and more for less and less services. Rats and sinking ship comes to mind! Mon 01 Nov 2010 19:42:39 GMT+1 AnSME http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=51#comment106 Unfortunately SMEs and self-employed specialists in Information Technology have already had their contracts terminated or not extended in order to save money in-year within Government. The large IT companies have not been affected. Government Departments and Agencies need help from indepdendent specialists to get better results from the powerful and large IT companies but unfortunately Ministers don't understand this dynamic and do not understand that historic outsourcing of IT functions has resulted in Government being very exposed to large IT companies. To get greater efficiency in Government we need ICT investments, but without SMEs helping Departments/Agencies,Government will just increase profits for the large IT companies without little real progress. Mon 01 Nov 2010 19:34:56 GMT+1 steve http://www.bbc.co.uk/blogs/haveyoursay/2010/11/what_barriers_to_growth_do_sma.html?page=51#comment105 What problems do small firms face?Monopolies."Name some Monopolies, other than the water companies and train companies.------------Oil companies are not monopolies but when you can't see more than 1p between the prices they all charge on the forecourt they effectively behave like one.The same applies to utilities, rail and to a slightly lesser extent major supermarkets. These amount to around 75% of the average families weekly spend Mon 01 Nov 2010 19:34:55 GMT+1