Where next for entrepreneurs?

Nov 6 2007 By The Journal

There’s talk of a second coming for the dotcom boom. What advice do you have for any would-be entrepreneur contemplating that route?

CB - "While a repeat of the overheated boom of the late 1990s is unlikely, the internet is starting to deliver the growth predicted for it. This is predominantly down to the take-up of broadband by both home users and businesses. As the internet gets faster new business opportunities become feasible."

Does age matter in deciding whether to become an entrepreneur?

"No, although in recent research by the Forum most of the entrepreneur sample was aged between 26 and 55 with the greater part within 36 to 45 (44%) and a further 28% between 26 to 35. Some 83% of respondents did recall a specific moment when they decided: 'I will definitely start my own business.' Most though (90%) recognised a culmination of factors made them start: redundancy, their boss not interested in their ideas, corporate fatigue, divorce and other triggers."

What’s advice do seasoned entrepreneurs tend to give?

"Surround yourself with people who have experienced the same journey. It can be lonely running a business. Taking time to pick brains can be invaluable. Once beyond the thinking stage there has never been a better time to seek advice from Business Link North-East and other business support organisations that are all doing a sterling job in this region for start-ups."

What are the biggest obstacles to self-employment and business building?

"Usually fear and losing the comfort blanket of permanent employment. Many people start businesses when they’re unemployed or have life-changing experiences.  But most people who start businesses can’t really avoid it – it’s not a positive 'go for it' so much as a passive decision not to resist an overwhelming, instinctive urge to have a go. The real issue then is funding and how to get it."

Should you get work experience in a sector before considering a start-up in that line?

"Often entrepreneurs see a gap in the market and their reactive nature is key to optimising opportunities. Most have experience of the sector. But others play to their strengths in terms of their general business acumen, then set about finding talented people to compensate for any lack of knowledge. However, more than 77% in research by the Forum have agreed it is important to gain practical career experience before starting a business, and that having the right level of skills, experience, support and a good idea gives confidence. The research showed 55% had always known they would start their own business and 64% agreed that once they had the right idea, they were prepared to go for it.

What are the biggest challenges in carrying a business beyond a two or three year life?

"Often businesses struggle in the transition from the start-up/small business stage to the medium sized/maturing stage of growth. This is usually as the businesses has become established and perhaps profitable but needs to move up to a more sustainable size. There have to be strong systems in place then in areas such as finance and HR. Now the entrepreneur should be making comparisons with previous years – are business targets being achieved consistently month on month? And now new recruits join who perhaps do not understand the ethos, aims and objectives of the business in the same way as those there from the start. So it is important to maintain a positive and focused organisational culture. Finally it is often the time to bring in new managers to share the load. One person cannot build up to a substantial enterprise without a great team alongside."

What common quality do successful entrepreneurs share?

"Self-belief, but this comes from many different places and five key characteristics – confidence, opportunity, motivation, skills and resources."

Who are some established entrepreneurs of the Forum now helping their younger peers?

"It isn’t just helping younger peers. They learn from each other too, particularly when someone has just experienced the growth stage you are about to encounter. As for nurturing the younger talent, Sir Peter Vardy leads by example and is most active."

How do they help?

"Having been there and done that they provide collective wisdom. If they don’t know an answer, they have a wealth of contacts / associates to tap into. Their guidance is non-judgmental."

Who are some of the younger entrepreneurs of the region?

"James and Matt Surgeon of Supe, Peter Hunt of Fresh Element, Danielle Dunn of Fresh Deli and Sarah Taylor of 24/7 Cities are just some. They’ve developed and progressed with huge enthusiasm and determination."

Why are entrepreneurs so important to this region?

"They create jobs and wealth for themselves, their families, employees and suppliers. Their dynamism creates a ratchet effect, which has a bigger impact than the ostensible cash value of the money being spent. Also they regard every failure as an opportunity to try something new.  They keep on going, never give up. They always believe in what they’re doing, and in themselves - in contrast to some people who tend habitually to be negative, suspicious and pessimistic. They assume good things won’t happen here: entrepreneurs just know they will. So if the more productive positivity of entrepreneurs was made more widely known, their remorseless optimism would or could start to eat into the automatic negativity of others. This would have a beneficial effect greater even than the economic impact of entrepreneurial businesses, since it would influence all aspects of life and work in the region."

Interview continues on page two.