Business Start Up Schemes: Lack of Awareness Stunts Business Growth
Over the past few years, the UK government has introduced a range of initiatives to aid the development of small businesses, which in turn could help to aid the growth of the economy.
With everything from free workshops and mentoring through to funding schemes for entrepreneurs, the government has found a wide range of business start up schemes which aim to support and back small businesses in the UK.
However, according to a recent report there are many small businesses in Britain that are totally unaware of the various business start up schemes and initiatives that the government has in place to help them.
This is thought to be holding back the growth of some small businesses, as they are oblivious to the help that they could be entitled to in order to keep them afloat. This in turn is having a negative impact not only on some small businesses but also on the economy as a whole.
Current Business Start Up Schemes
An independent financial broker recently carried out a survey, with 300 small businesses taking part.
The results showed that only 42 percent of the small businesses that participated in the survey were aware of two of the government’s flagship business start up schemes, the Funding for Lending Scheme and the Enterprise Finance Guarantee Scheme.
There were various other business start up schemes where awareness was even lower. This included Supply Chain Finance, which only 2 percent of businesses were aware of. Only 10 percent were aware of the British Business Bank and 19 percent knew about the Regional Growth Fund. Worryingly, a couple of those businesses interviewed believed that the Bank of M&D, which is the name given to the fictional Bank of Mum and Dad, was an actual government initiative.
The Start Up Loans Scheme, which is chaired by former Dragon’s Den star James Caan, received the highest level of recognition from the small business that took part in the survey. The figures showed that around 62 percent of businesses were aware of this government initiative.
One industry official said that while the various government business start up schemes and initiatives could be valuable for small businesses and start ups, too many of them were being promoted very poorly.
He said that no matter how good the schemes and initiatives were, there was little point having them in place if businesses knew nothing about their existence. He added that rather than focusing on launching new schemes, the government needed to focus on promoting the ones that already exist.