UKTI ambassador slams lack of government support for struggling businesses
The Business Ambassador at UK Trade and Investment has slammed efforts by the government and British industry to help firms that are struggling.
Lord Digby Jones, former trade minister, has said that much more must be done to help businesses facing financial hardship.
He also added that the UK has become too risk averse and that many businesses are not prepared to take the necessary risks to be successful.
This is impacting upon the levels of creativity and innovation that are occurring, which could potentially limit economic growth.
Lord Jones spoke of the risks associated with starting up a business and said that ‘calculated risks’ help to generate growth.
Putting the right strategy in place
He said that the business world is increasingly unforgiving towards SMEs and suggested that more needs to be done in terms of offering support for them.
Failing businesses can be turned around with the help of insolvency advice and an understanding of recovery measures, but they would still require a viable business plan in order to succeed.
“We understand that not all businesses will succeed, and when they do not, they need skill, courage and capital to give them the time necessary to review options, take advice from others and turn around their fortunes,” stated Lord Jones.
Access to finance is slowly improving for many SMEs but it is the advice they can receive from others in the business world that can really promote success.
Following the recession, many businesses remain aware of the potential risks and are averse to invest heavily in projects with a great deal of risk.
Growing a company requires growth and a willingness to take on opportunities, but it also needs a solid financial footing to enable sustainable growth.
That type of growth should be the target in the long-term but it requires the correct processes to be in place to support it – the processes that Lord Jones has highlighted for improvement.
By Phil Smith