http://blogs.birminghampost.net/business/

Mulling things over with George Osborne

By Mike Loftus on Jul 31, 12 04:46 PM in

I have been mulling a little over the last week or so (I think it was the rain brought it on to be honest so this recent bright spell might just dispel it). One of my recurring mulls has centred on the intriguing question of what is that you become after you have been a start-up. And


One answer - a rather morbid one - is, I suppose, a stop-down. And as if to confirm this, one report that Google brought to my attention had the suggestion that some 90% of start-ups don't survive their first year. Typically the next statistic I came across turned this first one neatly on its head with the perhaps more comforting statistic that some 90% plus of new businesses actually survive the first year.

So there's ample room for debate and discussion there.

The 90% survival rate number derives from VAT statistics relating to the numbers actually registering and de-registering for the tax and the boffins who put them together readily acknowledge that they present a very partial picture of what is actually going on - lots of start up businesses, no doubt, take off and hopefully survive without breaking through the VAT turnover threshold so don't need to register at they set off - if at all

However given that there appears a general consensus from the sort of folk who know about this stuff ( that's the fwkats, for short)that it's a ' good thing' for people to be looking to start off on their own, you'd might think that there'd be a slightly clearer sense of the consequences of the said 'good thing'.

Unless you - like me, I have to confess - have dwelt a little too long on the dark side where well meaning folk earnestly apply themselves to dreaming up ways to support business and generate prosperity, you are probably not long detained by these matters. And its grossly heretical of me to say so but even given the best will in the world the deep connection between cause and effect in all that earnest activity is sometimes a bit difficult to make out.

Apropos of which you might recall the tale of the man found on the corner of Newhall Street and Colmore Row carefully tearing a copy of the Birmingham Post into three inch cubes, screwing these into a ball and tossing over his left and right shoulders alternatively. Concerned passer-by asks

"What're doing there, mate ?"
"Frightening the tigers away, pal"
"But there aren't any tigers here"
" I know - it works brilliantly doesn't it"

So might it be with business start up support initiatives. Cause and effect loosely and only imperfectly connected at best,you see

Returning to the fwkats (see above) for a moment, their earnest hope and desire is that after start-up the thriving business morphs into a gazelle - sleek and graceful and growing by leaps and bounds. Speaking for me and mine I have an anxiety about becoming a unicorn - even more beautiful and alluring than a gazelle - but unfortunately a complete figment of my imagination.

But enough of this fanciful menagerie.

My highest ambition at the moment is to make the uncertain step from start up to still stumbling-on in the bright expectation that I might graduate in due course to striding confidently upright.

To that end I have sought good counsel and looked to follow the advice and direction of those eager to present it to me; I have even listened and acted on the exhortations of Her Majesty's Foreign Secretary, got on a plane and taken myself to Bangalore, Beijing and Beyond - sorry, beyond - looking for business. Of course it's a long haul - and that's not just the flights.

But - well - there is just the one thing.

I need to begin though by outing myself as the sort of wus who can't get too worked up about the principle of paying tax. I don't need Danny Boyle's Olympic Extravaganza to sell me the National Health Service - when it and I were both little more than infants it actually saved my life. Education, social care, infrastructure - all need paying for.

But the simple and unavoidable fact is that, close to two years in, George Osbornehas taken more cash out of my little enterprise than I have myself. And that can't be right surely?

If I am to make it from start up to stride the sunlit uplands, keeping a bit more of the cash in the business at this precise stage would be very helpful ballast - and rest assured I'm only too happy to share some of it with you ,Mr Chancellor, when I start taking some myself.

Maybe you could mull that over ?

Leave a comment


Type the characters you see in the picture above.

This is to help prevent spamming and confirm you are a human

 

Business authors

David Bailey

David Bailey - Prof David Bailey, Coventry University Business School
My postings | David Bailey's RSS feed My feed

Stuart Pemble

Stuart Pemble - Construction Lawyer, Mills & Reeve
My postings | Stuart Pemble's RSS feed My feed

John Clancy

John Clancy - Birmingham City Councillor and director of mediafuturesalert.com and justliteracy.com
My postings | John Clancy's RSS feed My feed

John Samuels

John Samuels - Professor of Business Finance, Birmingham Business School
My postings | John Samuels's RSS feed My feed

Chris Tomlinson

Chris Tomlinson - Chris Tomlinson is the founder of social media and online PR agency Friend (frienddigital.com)
My postings | Chris Tomlinson's RSS feed My feed

Andrew Whitehead

Andrew Whitehead - Senior partner at law firm SGH Martineau, leading the firm's Energy & Climate Change practice.
My postings | Andrew Whitehead's RSS feed My feed

Keith Gabriel

Keith Gabriel - A Birmingham-based PR Account Manager
My postings | Keith Gabriel's RSS feed My feed

Beverley Nielsen

Beverley Nielsen - Lecturer, Design Management, at the Birmingham Institute of Art & Design, BCU
My postings  | Beverley Nielsen'a RSS feed My feed

Mike Loftus

Mike Loftus - Director of News from the Future Ltd. Writing on the trials of setting up your own business
My postings | Mike Loftus's RSS feed My feed

Richard Halstead

Richard Halstead - Midlands region director for EEF, the manufacturers organisation.
My postings | Richard Halstead's RSS feed My feed

Karl Edge

Karl Edge - partner at KPMG in Birmingham, specialising in automotive, manufacturing and house building sectors.
My postings | Karl Edge's RSS feed My feed

Peter Owen

Peter Owen - Managing director for construction firm Willmott Dixon Midlands.
My postings | Peter Owen's RSS feed My feed

Dr Steven McCabe

Dr Steven McCabe - director of research degrees for Birmingham City Business School.
My postings | Dr Steven McCabe's RSS feed My feed

Francis Greene

Francis Greene - Professor of Small Business and Entrepreneurship, at the University of Birmingham.
My postings

Alan Gilmour

Alan Gilmour - Director at Cogent Elliott, experienced in marketing, brand development and customer relationship management.
My postings

Paul Noon

Paul Noon - Paul Noon, OBE, West Midlands International Trade Director at UK Trade & Investment.
My postings

Latest Birmingham Post Lifestyle blog

Lifestyle Blog

Birmingham Post staff and guest bloggers from the midlands give you the lowdown on what's happening in your region and some musings on culture in the UK and beyond.

Latest Birmingham Post Science blog

Latest Birmingham Post Sport blog

Keep up to date

Sponsored Links