Starting a business – the UK experience
Paul Hadley
Deputy Director Small Business Service United Kingdom
and Paul Harrod
Small Business Council United Kingdom
Myths and legends
Myth No. 1: Around the same number of entrepreneurs buy an existing business as start from scratch. Myth No. 2: It takes years to start a business from scratch. Myth No. 3: It’s hard to get a bank loan to start a business.
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Myths and legends
Myth No. 4: A business plan is the most essential element in start-up. Myth No. 5: Small businesses don’t generate much turnover in their first year. Myth No. 6: Small firms spend half their time dealing with red tape.
Myths and legends
Myth No. 7: Most small firms fail within the first year. Myth No. 8: There are significant tax advantages to being self-employed. Myth No. 9: Overly optimistic estimation of the value of tax breaks
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Starting a business in the UK - Some Facts
• FACT: 1,200,200 documents received electronically at Companies House in 2005 – 40 documents processed per minute; • FACT: 83% of new UK companies are now incorporated electronically; • FACT: These were processed in under 24 hours; • FACT: The record for incorporating a business is 5 minutes; • FACT: 120 new companies are added to the register every working hour; • FACT: There were 60% more incorporations in 2005 that in 2001; • FACT: It is easier to set up a company in the UK than most other countries.
Help for business
• Regulation is consistently cited by small business as a top 5 barrier to growth; • The perception of regulation stops would be entrepreneurs starting/growing; • Regulation impacts on small businesses disproportionately; • “Think small first” a good step on the road to better regulation; • The No-Nonsense Guide to Government Rules & Regulations for setting up a business designed to lead business through the process.
The No-Nonsense Guide to Government rules & regulations for setting up a business
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Help for Business - Advice on-line
Help for business - Face to face
One stop shops
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Next steps – cross Government working
• Expand e-service delivery and take-up; • Joint filing of accounts and accounting dates between Companies House and HM Customs and Revenue; • Continue to work across Government to benefit business. Combating fraud • Webfiling – a safe and secure way to send information; • PROtected on-line filing (Proof) – only accepting change of details forms electronically
Useful links
• No-nonsense guide to starting and growing a business – www.businesslink.gov.uk/publications • Business Link website - www.businesslink.gov.uk • Companies House – www.companieshouse.gov.uk • Myths surrounding starting and running a business www.sbs.gov.uk/SBS_Gov_files/researchandstats/MythsReport.pdf
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