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Red tape Government review to free challenger businesses

An independent review into bureaucracy surrounding challenger businesses announced by Michael Fallon, MP, will aim to eliminate barriers to growth.

Speaking at the MADE entrepreneur festival in Sheffield, the Business and Enterprise Minister announced that red tape would be scrutinised in a bid to help businesses develop in new markets.

Challenger businesses will be specifically targeted after outdated rules and regulations have been thought to hinder innovative models driven by new technology.

The Government has been rallied by popular discussions on business forums that suggested unconventional new businesses were held back by unnecessary bureaucracy.

Michael Fallon commented on the announcement: “Challenger businesses create wealth and jobs – we should champion them at every opportunity.

“I am now looking in more depth at the rules and regulations that are holding back our most forward-thinking entrepreneurs.”

The Minister further announced that he will give more authority to the Regulatory Policy Committee to ensure that challenger business are not obstructed by red tape.

New measures, named the “Red Tape Challenge”, include a strengthened independant body behind deregulation, encouragement into peer-to-peer finance schemes, help to access finance channels and support for minimising patent costs.

Further to these proposals, the Government hopes to make it easier for SMEs to challenge infringements to trade marks, balance the rights of consumers and online traders, and also amend the Estate Agents Act to remove middlemen that drive up costs.

SMEs will have the opportunity to gain support from trained business mentors through the national portal “Mentorsme”, which is accessed through the British Bankers Association.

Mr Fallon commented: “Business mentors play a vital role in helping SMEs to build their knowledge base as the support comes from someone who has been there and done it before.

“It is great that we now have a vast network of accessible business mentors but we want to grow that number even further and give greater choice to our entrepreneurs.”

Championing the Red Tape Challenge is chief executive of the Institute of Economic Affairs, Mark Littlewood, who will publish his recommendations for challenger businesses today.

Measures will also be put in place to particularly support women in business, with a £100,000 investment into pairing female entrepreneurs with mentors to help their companies prosper.

This injection of cash will bring the total investment into a business mentoring system up to £1.8m.

Maria Miller, Secretary of State for Culture, Media and Sport and Minister for Women and Equalities Maria Miller said: “Women are at the heart of our economic future. Helping them maximise their full earnings power will bring huge business benefits to Britain and help kick start growth.

“Giving women the support of a mentor who can relate to the challenges they face is a great way to give these entrepreneurs the tools and confidence they need to succeed. Additionally we are pleased to announce extra investment today that will help spread the benefits of mentoring even further.”

This was posted in Bdaily's Members' News section by Miranda Dobson .