Columnist

Getting on with the job of delivering growth

Entrepreneurs, by their very nature, are optimistic.

They strive to overcome obstacles and are driven by a desire to innovate and expand their businesses.

The UK relies on private enterprise to generate wealth and prosperity.

However, I must ask: should we be concerned our recent member survey reveals that while most North East entrepreneurs remain hopeful about their own ventures, they lack the same confidence in the broader UK economy?

Entrepreneurs like stability from the Government, but the first Westminster change in 14 years brings uncertainty.

They have reported elongation of the sales cycle over the summer, as businesses deferred making decisions while waiting for clarity on Labour’s new policies.

Business owners I speak to tell me the economy won’t really get moving again until after the October budget, when we will learn which pledges made over recent months will become reality.

There’s a lot of rhetoric about kickstarting economic growth, but for that we need policies that encourage investment.

Some business owners are waiting to see whether higher taxes will be imposed on their individual wealth before committing to investing further in their own businesses.

New funding for business growth is rightly focused on the industries of the future, but let’s not forget the existing industries that require cash for expansion and survival.  

Entrepreneurs will be keen to see a focus on invoices being paid on time.

Late payments, particularly by large businesses, are common place, and an unfair practice that needs to be addressed.

Likewise, businesses will welcome reforms to simplify the tender process for government and public sector contracts, which are currently so complex that SMEs are frequently ruled out. 

The proposed Employment Rights Bill must not prevent business owners from dismissing workers quickly if they are not performing.

We advocate for hiring slowly and firing fast, and hope that new legislation doesn’t impede the business owner from acting swiftly to remove bad hires.

Removing people – for the right reasons – is essential for the business and the worker, who is then freed to find a better fit for their skills.

The North East has a strong history of entrepreneurship, and our recent Entrepreneurial Awards showcased today’s fantastic talent.

Let’s hope the new Government gets behind us, and succeeds in getting on with the job of delivering economic growth.

Elaine Stroud is chief executive of the Entrepreneurs’ Forum

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