Start-ups stifled by bureaucracy

Oct 7 2009 By Bill Midgley, The Journal

WITH an economy crying out for new business start-ups, one would assume the path is clear for any enterprising individuals who wish to develop their skills and ambitions.

However, in spite of all the so-called business support agencies available the obstacles placed in the way of entrepreneurs are formidable.

An instance was referred to me of a young couple who were pushed around six different agencies to obtain the help they required.

Perhaps more a reflection of the quality of the staff of the agencies and their lack of understanding of businesses they have never run, than the system itself.

I was shocked to find of one individual who having been made redundant and planning to start up a business was advised she would not qualify for unemployment benefit.

As most know, it can take months to set up a business during which time there are no earnings. So where is the incentive? Far easier to claim unemployment benefit and be a drain on The State.

However, it would be unfair to place all the blame on the public sector as the mighty financial industry seems to be more interested in selling insurances and pensions than giving business advice.

Particularly frustrating for one business was the delay in the delivery of a chip and pin machine, because it takes a minimum of ten working days and often more in practice to be in the hands of a new trader.

It is quite clear that talk remains more prevalent than action, but of course the latter often requires decisiveness and the ability to make decisions. It is those qualities that make for a successful business, qualities that have not been learnt by the so-called advisory industry. Irrespective of what happens with the recession when it ends, the need for business start-ups will remain as important in the future as it is now.

There are many in the business community who would willingly offer their services based upon their own experiences to our prospective tycoons of the future. However I suspect that until we see real leadership from Government at local, regional and national level, bureaucracy and inertia will remain more important than initiative.

Bill Midgley is a North East business executive and former chairman of the British Chambers of Commerce.