Special Report
Entrepreneurs Forum Breakfast:
Clear blue sky?
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It has been widely argued that economic recovery depends on innovation and entrepreneurship within the private sector. But what has been the experience of UK entrepreneurs in the current climate? Is the market being stimulated to support the evolution of new concepts and start-up businesses? Or is the scope for creativity being limited to established organisations, which are being driven to review their business model?
An Entrepreneurs Forum for hospitality, leisure, travel and tourism was launched this week, hosted by EP magazine and sponsored by IndiCater. Held at Kings Place in Kings Cross, North London, a group of leaders from all sectors of the industry met to discuss the question: Is the recession encouraging or stifling entrepreneurs? Chaired by Forbes Mutch, the former Editor of Caterer & Hotelkeeper, the group debated a range of topics including the appetite for investment and political support for developing businesses.
Sergey Brin, Google’s co-founder, recently said that “Scarcity breeds clarity: it focuses minds, forcing people to think creatively and rise to the challenge.” Whilst the group agreed that the recession has forced a review of procedures, perhaps the definition of ‘entrepreneurial spirit’ is not as traditional as it used to be, as the overall conclusion was that the recession appears to be sparking entrepreneurship within existing companies rather than encouraging new ones.
The forum’s discussion:
- Scope of entrepreneurial activity
“The good thing about this recession is that clients are being braver about making decisions, they will cross that line as they have nothing to lose.”
“The fact is that there is a generation of small businesses that will not become medium businesses, and I don’t think we will see the impact of this for about a decade.”
“My view is that there is actually a lot of good talent out there, more good than bad. Our business has an established, talented management team and many years trading experience, we have new opportunities to pursue. But there is a huge caveat: there is no funding available despite this track record. We will get it, but it will be very difficult.”
“You have to look at where the opportunities for new business are coming from; about 50% of new ideas are from cash rich individuals who want to pursue something different. Middle management are putting their finger up to corporate players and
walking away. The question is: what will happen to UK plc as a result?”
“We assume that because there will be a change of government, that things will get better. However, we are in for a dose of medicine and that will not be particularly comfortable, particularly the reduction in public finances, so it does not necessarily follow that a change in government will become more business friendly.”
“I actually believe we will see VAT rise to 20% in the short-term future and that will have a huge impact on public facing businesses.”
“We have seen increasing churn amongst Finance Directors and companies looking to outsource their financial function.”
“Operations Managers must recognise the signs without data; they have to have a feel for the business. It’s not about black magic and voodoo, but a degree of business intelligence and being able to look at the sales mix.”
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