Microsoft UK SME News

FPB reiterates call for small business tax cuts

Fri, 20 Nov 2009 14:54:20 GMT

The government should make a series of specific tax cuts as part of proposals for 'responsible growth', according to the Forum of Private Business (FPB).

Prospects for sustained economic recovery could be jeopardised unless small businesses are provided with an environment in which they can survive and grow, the group says.

It is calling for substantial tax relief to be offered to small firms as part of the government's Pre-Budget Report.

According to a FPB study, more than a fifth of members desire a strong policy focus on easing the burden of taxation.

Some 31 per cent of those questioned called for business rates to be reduced, while 23 per cent said they desired changes to National Insurance and payroll, VAT and Corporation Tax.

"There is still a long and difficult road ahead of us, but small businesses are key drivers of the economy and the government must create a tax environment in which they can thrive," said the FPB's chief executive Phil Orford said.

"That means tax relief in specific areas that would help to foster cash flow, innovation and employment opportunities so that small businesses are able to seize the opportunities that will emerge as the economy emerges from recession."

Chancellor of the Exchequer Alistair Darling will deliver his Pre-Budget Report on December 9th 2009.

Posted by Dan Smith

Owners can benefit from entrepreneurial skills training

Fri, 20 Nov 2009 14:52:20 GMT

Small business owners can avoid dipping into their own personal finances to support their start-ups, it has been suggested.

According to Shane Krider, founder of the training company Polaris Media Group, individuals who hone their entrepreneurial skills will be able to drive sufficient revenue to keep their businesses alive without additional funding.

The firm found that, of 750 small business owners surveyed, 44 per cent had experienced cash flow issues in the past 90 days and 40 per cent said it was "very likely" they would have to spend their own money on the enterprise over the coming year.

An additional 21 per cent said it was "somewhat likely" that they would have to use their own personal funds.

Mr Krider commented: "A lot of small business owners, although they may be experts in their industry, are not adequately trained in entrepreneurial skills to weather this economic storm without taking a personal hit.

"We encourage entrepreneurs to get the training they need rather than taking out loans or financing their businesses with personal assets."

According to the News Press blog, while entrepreneurs are by nature risk takers, they tend to take measured rather than reckless chances in business.

Posted by Sarah Parish

FSB denounces proposed broadband tax

Fri, 20 Nov 2009 14:51:20 GMT

The government should scrap its plan to introduce a new broadband tax, according to the Federation of Small Businesses (FSB).

According to the organisation, introducing a 50p-a-month charge on all landlines – in a bid to subsidise national infrastructure developments – will backfire in the long run.

Such a move would serve as a disincentive for the private sector to invest in high-speed broadband, it argued, denying the business sector an increasingly vital service.

"Small businesses shouldn't have to pay for a service which could be encouraged by opening up the market to more competition from internet providers," the FSB argued.

The private sector should be compelled to install more efficient and effective technologies to attract the consumer, the organisation claimed.

According to the FSB, the government must show its support for firms, particularly in rural Britain where businesses have been waiting for years for promised action to deal with 'notspots' where there is no broadband access.

The comments come after Jeremy Hunt, the shadow culture secretary, revealed that a Conservative government would scrap the broadband tax plan.

Speaking at the London School of Economics, he claimed that the party would adopt a market-driven approach towards the provision of a high-speed broadband network.

Posted by Alex Boardman

New web users require IT security support

Fri, 20 Nov 2009 14:49:20 GMT

It is vitally important that people have some IT security knowledge when they go online, it has been claimed.

According to Robin Blake, head of media literacy at Ofcom, the media regulator is supporting the efforts of GetSafeOnline.org as it bids to raise awareness of key web safety issues.

He said a balance needs to be struck between IT take-up rates and people's knowledge and understanding, stating that as one increases, so must the other.

There is a critical need to raise awareness and support people as they embark on their digital journeys, Mr Blake stated.

"Our research is pretty clear that concerns about the internet, concerns about people's safety, and concerns about privacy are some of the things that prey on people's minds," he said.

"We recognise that by a concerted effort we can get people to change their behaviours to get more skilled and confident.

Mr Blake said that confidence is key on the internet because as this develops, users are more likely to transact in a safe and secure way.

Earlier this month, Tom Kelchner, research centre manager at Sunbelt Software, warned that avoiding malware is becoming increasingly difficult due to its increasing sophistication.

Posted by Jenny Arthur

Hiring apprentices can improve business popularity

Thu, 19 Nov 2009 14:57:19 GMT

Businesses which employ apprentices are more likely to be popular with consumers than those which do not, it has been reported.

According to the National Apprenticeship Service, 80 per cent of consumers are more likely to use a business that helps school leavers into the workplace.

The news comes after it was announced that a new 'badge' is to be awarded to employers who contribute to the economy by taking on young workers.

Supported by the British Chambers of Commerce, the scheme allows firms to advertise their apprenticeship badge-holder status – potentially enabling them to enhance their reputation and attract new customers.

Consumers will be able to search online for businesses listed as supporting young people through the initiative.

Iain Wright, parliamentary under-secretary of state for 14-19 reform, said it is encouraging to see consumers are asking for apprentices and choosing to use businesses which support young people over those which do not.

"This consumer choice gives employers another bottom line reason to hire apprentices," he added.

Meanwhile, Kevin Brennan, the minister for further education, skills, apprenticeships and consumer affairs, has claimed that apprentices contribute to their employers' success,

They help to increase efficiency and productivity, and provide a sound investment for the future, he stated.

Posted by Jenny Arthur

Dedicated servers may help small firms with IT

Thu, 19 Nov 2009 14:56:19 GMT

Small businesses seeking basic IT support solutions may wish to consider investing in a dedicated server, it has been suggested.

According to The Hosting News, such servers are "extremely simple" and ideal for firms lacking specialist technology expertise.

Users are able to pay for the server and then use it as little or as much as they like over the course of a month.

They obtain complete ownership of the server, in contrast to the increasingly common usage-based billing systems adopted by cloud models, the site explained.

"With a dedicated server, everything is as simple as it gets. Whenever a problem occurs, you can simply pick up the phone and call support," The Hosting News added.

"Assuming that you're dealing with a responsible company, the problem will be identified and taken care of in a matter of minutes."

The website recently urged dedicated server users to change the default password setting upon receipt of the technology, claiming it is vitally important that every person able to gain access to the system can be identified.

Different access codes should be used for personal and administrative accounts, the site claimed.

Posted by Dan Smith

EIAA predicts rise in online ad spending

Thu, 19 Nov 2009 14:54:19 GMT

A significant rise in online marketing spend has been predicted for 2010.

Research conducted by the European Interactive Advertising Association (EIAA) indicates that 94 per cent of professionals expect further investment in areas such as email and website marketing.

A 7.6 per cent year-on-year rise in online advertising spend has been projected, followed by a 15 per cent increase in 2011.

The EIAA has identified behavioural targeting, advertising networks and affiliate marketing as major growth areas.

Alison Fennah, executive director of the association, said the recession has made it increasingly important for firms to use their marketing budgets wisely.

Since online advertising has "an ability to offer brands a robust return on investment", it can be a valuable asset, she claimed.

Ms Fennah added: "Online advertising is further consolidating its position as the medium of choice for marketers across Europe.

"Marketers still seek innovation, with new formats such as mobile evolving and helping interactive media to emerge strongly as we look forward to the upturn."

Douglas Quenqua recently told DMNews.com that the majority of firms are aware of the benefits of email marketing.

Posted by Jenny Arthur

Small firms urged to hire payroll providers

Thu, 19 Nov 2009 14:53:19 GMT

Small business owners should consider hiring a payroll provider to offer the expertise they require, a new study has suggested.

Research conducted by Harris Interactive on behalf of Paychex indicates that 69 per cent of accounting professionals believe using a specialist firm is a good idea.

Some 84 per cent of respondents said they prefer clients to outsource payroll functions rather than take the time to calculate the combination of pay, taxes, and deductions required to issue pay on their own.

More than 70 per cent of respondents claimed that clients typically lack the necessary expertise to process payroll in-house, or could better spend their time focusing on running their business.

Meanwhile, the study found that just 39 per cent of accountants who prepare payroll for clients cited this service as a good revenue opportunity.

Paychex senior vice-president of sales and marketing Del Humenik said the firm "truly values and appreciates" the knowledge and insight offered by accountants in this field.

Last week, eight Eastern European nationals were charged with participation in a £5 million computer payroll scam, which saw the card-processing company RBS WorldPay targeted.

Posted by Steve Williams

Business regulation freeze needed says FPB

Wed, 18 Nov 2009 12:55:18 GMT

The government should freeze the introduction of new business legislation while it reassesses the burden of red tape, according to the Forum of Private Business (FPB).

It is calling for the proposed moratorium to last until the General Election, which is expected to take place in May 2010.

Earlier this year, the forum reported that small and medium-sized business spend a combined sum of £12 billion per year ensuring regulatory compliance.

In addition, it claimed that such firms devote up to 37 hours per week meeting legal requirements.

The FPB's policy representative Matt Goodman said that a hiatus in new small business laws during the months before the election would be the perfect opportunity to launch the first Comprehensive Regulatory Review.

"The government must ensure that regulations are proportionate to their aim," he claimed.

"We want departments to get to grips with all the various aspects of the regulatory burden on businesses and a [review] would provide just that sort of understanding."

Mr Goodman said that in order to make the Better Regulation Executive's hard work really count, "a better picture" is needed of what is on the statute books at the moment.

Access to credit still a problem for small firms

Wed, 18 Nov 2009 12:54:18 GMT

Access to finance remains a serious problem for British businesses, according to the British Chambers of Commerce (BCC).

The BCC has claimed that despite the Bank of England pumping £200 billion into the economy to boost money supply and stimulate lending, firms are still struggling to gain credit.

According to the latest monthly survey, 33 per cent of companies reported that accessing finance had been more difficult over the last three months.

When the same question was asked in June, just 20 per cent of businesses believed the situation had worsened.

In addition, the number of firms reporting an improved access to finance fell – dropping from six per cent in June, to just three per cent.

David Frost, director general of the BCC, said it was clear that the huge sums that have been injected into the financial system are still not reaching small and medium-sized businesses "in anything like the scale required for business to invest for future success".

He added: "The Pre-Budget Report on December 9th must include measures that encourage companies to invest and improve confidence.

"Announcing that 2011's planned increase in National Insurance contributions will be scrapped would be a good start."

Earlier this month, the Bank of England held interest rates at 0.5 per cent but increased its quantitative easing programme by £25 billion.

Mobile working growing in popularity

Wed, 18 Nov 2009 12:52:18 GMT

Many UK firms are increasingly adopting mobile working structures as they bid to increase efficiencies and reduce costs, it has been reported.

According to a study conducted by Kelton Research on behalf of LogMeIn, 71 per cent of IT managers believe remote access services make their staff more productive.

In addition, 68 per cent said they now provide support for personal technology, including computers and smartphones.

The study indicated that 23 per cent of employees work off-site at least once a week and around 12 per cent work virtually.

Meanwhile, 51 per cent of business leaders surveyed said they plan to increase their use of remote access services over the next six months.

Andrew Burton, vice-president of products for LogMeIn, said the survey indicated that IT is not only a requirement for small and medium-sized businesses – it is a strategic enabler.

He added: "Whether end users are remaining productive while outside the office through remote access technologies or IT departments are expanding their support for consumer devices, business managers and IT providers are working together to make their organisations more productive and competitive every day."

Research from Forrester recently indicated that mobile staff will make up 73 per cent of the UK workforce by 2012.

Experimenting may help business growth

Tue, 17 Nov 2009 15:28:17 GMT

Small company owners should be prepared to experiment as they bid to drive business, it has been claimed.

According to John Grange, an advisor at Business Link, there is no need to "reinvent the wheel" to experience success, but firms do need to be proactive and innovative.

He said the only unacceptable answer is doing nothing at all to increase trade, so owners should be prepared to test a number of growth strategies.

"Talking to your customers or your customer base is never a bad thing to do. You learn so much from them," he stated.

"Try new things, if it doesn't work, move on, try something else. Learn from your peers - people who have been through what you are going through. Look for opportunities to talk with [them] and learn what you can."

Mr Grange said that "good people, with a good product or service, in a reasonable market" must push on and keep going.

"Certainly, look after your customers - they pay your salary," he stated.

Andy Garbutt, retail and leisure director at professional services firm PricewaterhouseCoopers, recently claimed that consumers can still be encouraged to spend when they believe they are gaining good value for money.

Posted by Dan Smith

Past successes can help raise business confidence

Tue, 17 Nov 2009 15:25:17 GMT

Businesses should build upon their previous successes and take proactive steps to raise their confidence levels and succeed, it has been claimed.

Commenting after research from Lloyds TSB showed that business confidence fell for a second month in a row in October, Business Link advisor John Grange said company owners must take affirmative action.

He commented that most businesses have been through a difficult time recently, witnessing a contraction in demand for their products and services, but this is no time to give in.

Mr Grange said business owners must pour their energies into driving revenue, reminding themselves of how they have achieved this in the past and looking at what others are doing to combat the recession.

"What they will see is some have succeeded. This is the way to gain confidence, in that most businesses found themselves in a difficult situation - some of their making, most not of their making - and they have acted proactively and reactively to address that," he added.

"The first time you do something new, you're always a bit nervous, and [if] it works, that gives you the confidence."

According to Lloyds TSB, overall business confidence fell by two points last month to its lowest level since June.

However, the overall trend is still rising and confidence levels are still markedly higher than in early 2009.

Posted by Sarah Parish

Mobile costs must be controlled

Tue, 17 Nov 2009 15:24:17 GMT

Many UK businesses have failed to keep on top of mobile costs, it has been claimed.

According to Glyn Owen, portfolio manager at Damovo UK, firms should actively be seeking to reduce the amount they spend in this area.

He was commenting after research from the ICT solutions and service provider found that UK enterprises could potentially be wasting up to £264 million per annum on mobile call costs.

Despite this, just 14 per cent of companies are utilising Wi-Fi to make cheaper calls, the study found.

Mr Owen said there was perhaps an issue of belief about whether the solutions are actually able to reliably reduce costs.

He stated: "Mobile spend in a lot of organisations has crept up in a very ad hoc way and hasn't been controlled like a lot of other expenditures.

"Maybe it's just they haven't looked at what is actually required or maybe how little is required to actually be able to use that Wi-Fi network to carry voice applications quite successfully."

Research conducted last week by Citrix GoToMyPC indicates that many British workers believe they could significantly reduce the time they spend travelling to and from work by adopting a smarter approach to commuting.

The most popular solutions include home working, varying start and finish times, and using mobile technology to enable flexible and remote working.

Posted by Alex Boardman

NI councils slowest to settle invoices

Mon, 16 Nov 2009 15:36:16 GMT

Councils in Northern Ireland (NI) are by far the worst in the UK at paying their suppliers and contractors on time, it has been reported.

A study conducted by the Forum of Private Business (FPB) indicates that UK councils pay their bills within an average of 19 days, although this figure rises to 37 in NI.

Just 11 per cent of invoices are settled within a ten-day period, it was reported, while 54 per cent are paid within 30 days.

The next-worst performing area for payment within a month is Scotland, where 86 per cent of invoices are settled within a month.

Commenting on the findings, FPB spokesman Phil McCabe said that local authorities in NI are "easily the slowest" in the UK at paying the firms they do business with.

He added: "The figures for Northern Irish councils compare unfavourably to authorities in the rest of the UK by every single measurement.

"When Peter Mandelson urged local authorities and public bodies to implement ten-day payment wherever possible a year ago, it applied to the whole of the UK, so we're unsure why the message hasn't filtered through to the six counties."

Earlier this year, the Federation of Small Businesses demanded an end to late payment culture in the UK.

Posted by Alex Boardman

FPB concerned about phoenix firms

Mon, 16 Nov 2009 15:35:16 GMT

The government must intervene to address the issue of firms using corporate insolvency to escape their responsibilities to creditors, it has been claimed.

According to the Forum of Private Business (FPB), the problem of phoenix companies starting again under a different name is one that cannot be ignored, especially where small businesses are going unpaid.

The FPB explains that such a firm exists where the assets of one limited company facing liquidation are moved to another business, often with some or all of the original directors remaining in place.

Matt Goodman, the FPB's policy representative, said that when a business drops out of the market, banks and the government take their cut, but the small businesses which have supplied them are often left in the lurch with no payment or recourse.

"If a competitor wipes the slate clean of debts and carries on trading, where does that leave those small businesses struggling with their own finances?," he questioned.

"Though it may be too late to help those small businesses who have been hardest hit by phoenix practices in this recession, surely we can use this review to help isolate and correct the problem?"

The FPB has claimed that suppliers in Northern Ireland are the worst at paying their suppliers promptly.

Posted by Sarah Parish

ONS says gender pay gap has narrowed

Mon, 16 Nov 2009 15:33:16 GMT

The gender pay gap narrowed between 2008 and 2009, latest figures have indicated.

According to the Office for National Statistics (ONS), the gap – measured by the median hourly pay excluding overtime – fell from 12.6 per cent in 2008 to 12.2 per cent this year.

Part-time female employees have fared even better, it appears, with the gap down by two per cent.

The average full-time wage for males in April 2009 was £12.97 per hour, compared to £11.39 for their female counterparts.

When calculated using the mean rather than the median, women's hourly pay stood at 16.4 per cent less than men's pay for full-time employees and 13.2 per cent for those working part-time.

According to the ONS, the widest gaps are found in the skilled trades sector, with the narrowest existing in professional occupations.

Last week, Maxine Benson, co-founder of the female business support group Everywoman claimed that the gender pay gap remains a problem in the UK.

She claimed that many women are not even aware of the earnings disparity and where they are, they often fail to ask their employer for more money.

"Even with the most senior of women, many of them grapple with having confidence to talk about money and request the pay that they should have," said Ms Benson.

Posted by Steve Williams

Sophos claims security risks stem from social media

Mon, 16 Nov 2009 15:29:16 GMT

Hackers are increasingly attacking social networking websites, it has been claimed.

According to Graham Cluley, senior technology consultant at security software and hardware company Sophos, businesses and home computer users must be aware of this growing threat.

The majority of hackers are aiming to steal personal information or distribute malicious software and spam, it has been claimed.

For companies whose employees enjoy using social media sites, the comments may cause some alarm.

Mr Cluley provided an example of the chaos hackers are able to cause on social networks, saying that in 2008 he found he was able to access any Facebook user's date of birth, even where the individual had asked the site to conceal personal information.

He added: "Research we conducted earlier this year found 66 per cent of companies believe workers are putting their firm at risk through their use of social networks.

"We revealed just how many people say they have been spammed [34 per cent], phished [21 per cent], or sent viruses [21 per cent] on a social network."

US singer and entertainer Britney Spears saw her Twitter and MySpace accounts hacked into last week, it was widely reported.

Posted by Jenny Arthur

Card payments must be embraced by small firms

Fri, 13 Nov 2009 13:00:13 GMT

Small businesses which only accept cash or cheque payments are increasingly putting themselves at a competitive disadvantage, according to a new report.

Merchant Accounts notes that many firms are still failing to provide the facility for their customers to pay on debit or credit card, a decision which could lead to loss of trade.

The firm said that while most online retailers understand the importance of accepting credit cards, businesses including restaurants, bars and small shops remain "behind the times".

While companies whose primary form of payment processing is cash and cheque may have a loyal following, it added, the inconvenience caused by an inability to pay on plastic card may dissuade other people from becoming regular patrons.

A spokesperson for the firm said: "The number one benefit of credit card processing is convenience.

"Customers without chequebooks often have problems at small businesses, especially since most people don't like to carry large sums of cash with them. When businesses accept credit cards, they can save sales that might otherwise be lost."

Plastic card transactions accounted for 66 per cent of all consumer spending in the UK during 2008, according to the UK payments association Apacs.

Posted by Steve Williams

Firms urged to adopt business telephone systems

Fri, 13 Nov 2009 12:58:13 GMT

Companies may be able to strengthen their brand by investing in a small business telephone system, it has been claimed.

According to 08 Direct, firms which attach a 0845 number to their contact details receive a greater volume of inbound traffic.

The company suggests that this helps maximise revenue, as employees and/or sales staff are able to spend a larger amount of time in contact with customers.

"But firstly, you need to encourage your customers to call you, only when you are available to answer their call and can deal with their problems straight away," 08 Direct said.

"By attaching a to your small business phone systems, you increase your inbound call traffic. This is because these numbers are cheap to call, and the customers feel that they are contacting someone reliable."

Firms can boost their image and gain a national presence using a business telephone system, 08 Direct added, even where the enterprises are only small and primarily focused on the local market.

The number helps give the impression that the firm is a large and reputable organisation, it suggested.

Last month, a report from Invomo indicated that many customers still prefer communicating with companies using the telephone, despite the popularity of the internet.

Posted by Dan Smith

Small firms lacking technology knowledge

Fri, 13 Nov 2009 12:57:13 GMT

There is still a lack of understanding of new technologies among small businesses, it has been claimed.

According to cloud IT services provider ThinkGrid, solutions which allow flexible and remote working, such as cloud computing, are often confusing to small enterprise owners.

Rob Lovell, chief executive officer at the firm, said that hosted IT "can make a real difference" to company operations.

They ensure that all applications and data on a business network are stored securely and remotely in the cloud, accessible via a simple domestic broadband connection, he stated.

However, Mr Lovell suggested that a lack of knowledge about such solutions has contributed to an absence of trust, leading to lower adoption rates.

"Data stored remotely and hosted by a specialist company, is far more secure than that stored in the office, and management time is dramatically reduced," he claimed.

Last month, Avanade reported that the number of global companies planning for, and testing, the cloud has increased dramatically during 2009.

The number of respondents who said they are beginning to embrace cloud computing jumped by more than 320 per cent from January 2009, suggesting that firms are willing to consider new technology as it becomes more established.

Posted by Sarah Parish

Further growth in mobile broadband market

Thu, 12 Nov 2009 14:12:12 GMT

The rate of growth in the number of mobile broadband connections has continued to increase, it has been reported.

Research conducted by the GSM Association (GSMA) indicates that the rate has increased by nearly two-thirds in the past year, with more than nine million new connections being added per month around the world.

One year ago, the rate of growth was 5.5 million connections per month, highlighting the sharp rise in mobile web use.

Europe and the Asia Pacific region account for an estimated three million of these new connections, the study suggests, while Africa, Eastern Europe and the Americas are the main expanding markets.

GSMA added that an additional 27 million connections are expected to be in use globally by the end of 2009.

Dan Warren, director of technology at the association, said mobile "continues its phenomenal growth" as thousands of operators, vendors, application and service providers back the technology, ensuring the presence of "a vibrant and competitive ecosystem".

He added: "Next generation network technologies will continue to deliver increased data speeds and enable mobile operators to constantly improve service experience by delivering the latest, feature rich multimedia applications to their customers."

Last month, Robert Epstein, head of small and medium-sized business at Microsoft, told Fresh Business Thinking that firms can save time and money by adopting mobile broadband.

Technology enabling home working

Thu, 12 Nov 2009 14:11:12 GMT

A significant shift in working practices is being brought about by widespread internet access, it has been claimed.

According to cloud IT services provider ThinkGrid, more professionals are now able to work from home given the emergence of technologies such as cloud computing and Software-as-a-Service.

Rob Lovell, chief executive of the firm, said this smart working approach enables companies to reduce costs and maximise the productivity of employees.

He suggested that technology has "removed the barriers of the traditional office" by allowing sharing and collaboration of data and applications.

"With the ability to securely access documents and remotely collaborate on them in real-time, and with desktop and phone systems able to span the globe, there is no reason why a traditional five-day working week in the office should continue," he added.

Earlier this year, Robert Janes, chair of judges for The National Business Awards, claimed that businesses can attempt to improve employees' working conditions even if it is not possible to offer them a pay rise.

He said firms should be looking to make savings where possible – potentially by allowing flexible working, reducing contracted times and offering extended holidays – but avoid making redundancies.

Women better at dealing with technology problems

Thu, 12 Nov 2009 14:08:12 GMT

Women are more astute at dealing with technology than men, according to a new study.

Research conducted by gadgethelpline.com has indicated that their superior patience and listening skills prove vital when problems are experienced with computers and other appliances.

The study found that women spend on average 32 per cent longer on the phone than men attempting to find a solution, but males are almost twice as likely to call back having not resolved the issue first time around.

Meanwhile, 64 per cent of men surveyed admitted they had not initially read the instruction manual, compared with just 24 per cent of women.

Maggie Berry, director of womenintechnology.co.uk, said the fact that women try to sort problems out themselves "spoke volumes".

She suggested that there had been no noticeable improvement as yet in the number of women entering the traditionally male-dominated IT professions, but expressed hope that this will change in the near future.

Ms Berry said she wised to see that "the generation of young people coming through growing up with technology... who are female would consider working in IT".

Research conducted by the University of Cambridge earlier this year indicated that European women now occupy more high status jobs than men do.

Many companies thriving in tough conditions

Wed, 11 Nov 2009 13:25:11 GMT

Many small businesses are continuing to do reasonably well despite the tough conditions affecting the sector, it has been claimed.

Thomas Parry, research manager at the Forum of Private Business (FSB), said that while some firms are struggling, others are making the most of the opportunities brought about by the downturn.

Small companies working in the creative industries have "enjoyed better fortunes than many" he suggested, with manufacturers and transport firms among those to suffer.

Mr Parry praised the innovative, hardworking and entrepreneurial characters of small business owners, pointing out how important their commitment has been to the survival of their enterprises.

He added: "The resilience and determination of small business owners is something we've been witness to – many of our members have used their own savings to keep their businesses trading, taken pay cuts to avoid making staff redundant and taken out desperately-needed loans by securing them on their own homes."

The ability of small firms to react quickly to opportunities has also helped many to continue trading during the recession, Mr Parry added.

Last week, Professor David Smallbone of Kingston University claimed that although limited resources render small firms "vulnerable to changes" in the business environment, they are able to exert an important influence over their own performance and survival.

Recession encourages rural home working

Wed, 11 Nov 2009 13:24:11 GMT

Around a fifth of people living in rural Britain now run a business from their home, it has been reported.

According to NFU Mutual, the recession has created a new breed of 'country-preneurs', as people living away from the towns set up enterprises in their own living space.

Of these rural start-ups, 36 per cent were established in the last 18 months.

The main factors in their creation are cited as a need to boost household income during the recession – which was the primary cause in two-thirds of cases – and redundancy.

NFU Mutual reports that the businesses are bringing in an additional £9,900 per annum on average, with one in 20 yielding over £50,000 per year.

Lindsay Sinclair, chief executive at the insurance group, said the countryside has "long been a great source of entrepreneurial spirit".

She added: "It is encouraging to see so many rural dwellers coming up with new and successful business ideas in such challenging times.

"However, it is important that people do not jeopardise all that they are creating by not having adequate insurance."

The Princes Trust reported this week that many young people are delaying moving into business themselves due to concerns about the recession.

Women cautious over company growth prospects

Wed, 11 Nov 2009 13:04:11 GMT

More than a third of women entrepreneurs expect to see positive revenue growth this year, a new study has indicated.

Research conducted by business advisory firm Deloitte shows that 36.7 per cent of female business owners are forecasting up to ten per cent revenue growth in 2009-10.

Some 6.7 per cent expect in excess of 50 per cent growth for their businesses this year, and a total of 32.3 per cent anticipate growth of between 50 and 200 per cent over the next three years.

Men appear to be more confident in their outlook, with 14 per cent predicting 50 per cent-plus growth and just nine per cent expecting an improvement by less than a tenth.

Debbie Griffiths, entrepreneurial business partner at Deloitte, said that expectations among female entrepreneurs were "relatively guarded" at this point, a sentiment that is only heightened when compared with the confidence displayed of their male counterparts.

"However conservative this outlook may seem, growth remains a key theme for many female led organisations," she added.

"One would hope that as the wider economy stabilises, a more bullish stance will emerge."

Last week, Avon UK reported that the number of female-owned start-up businesses has increased in the UK during the downturn.

Small firms still waiting for support from banks

Wed, 11 Nov 2009 12:59:11 GMT

Small businesses still need greater levels of support from the banks if they are to contribute to economic recovery in the UK, it has been claimed.

According to Stephen Alambritis, head of the Federation of Small Businesses, lending to businesses is continuing to fall, even among larger firms.

However, he told the Guardian that small firms are unable to issue corporate bonds in the same way as their bigger rivals when they need a cash injection.

Mr Alambritis said they have to go to their local bank manager and make the case for credit to be provided.

But even when they are able to succeed in proving the viability of their operation, the cost of accessing finance can prove prohibitive, he suggested.

"If small businesses are able to get loans, they now come with all sorts of charges and fees added on," Mr Alambritis stated.

"The government must really keep an eye on the banks because 89 per cent of small firms are tied to the big four high street banks."

Last month, the Forum of Private Business warned the government not to cut financial support for small businesses if it makes spending cuts to reduce the public deficit.

Number of insolvencies rises during Q3

Tue, 10 Nov 2009 12:19:10 GMT

The number of people registered insolvent during quarter three rose by 28 per cent on the previous year, latest figures show.

According to the Insolvency Service, almost 100,000 people have now registered during 2009, while there has also been a 20 per cent increase in the number of people using individual voluntary arrangements to deal with their financial problems.

Nick O'Reilly, insolvency practitioner and director at Vantis business recovery, said that the prospect of reaching 150,000 redundancies by the end of the year was "unbelievably frightening".

"[It] just goes to show the boom of credit that took place over the last six to ten years," he stated.

Mr O'Reilly said that if this recession created a new attitude towards debt, it was "long overdue".

"Although we are never going to go back to a situation where it is incredibly difficult to get credit, we should certainly tighten up the people who we give credit to," he stated.

Last week, Enterprise Tsar Lord Sugar caused outrage by suggesting that many small companies in the UK were failing enterprises that are not worth lending to.

Disturbed by the comments, the Federation of Small Businesses called for the Amstrad founder's resignation.

Young people delaying entering business

Tue, 10 Nov 2009 12:15:10 GMT

Despite one in six young people having an idea for a small business, the majority are holding off becoming self-employed until after the recession, according to a new study.

According to the Princes Trust, 56 per cent of aspiring business-owners have taken no action to make their ideas a reality.

Stephen Boyle, head of group economics at RBS, said the UK appears to have a measure of pent-up entrepreneurial activity, waiting for the right economic conditions.

"If the worst of the recession is behind us, we can be optimistic that the UK's young entrepreneurs will play an exciting role in the recovery," he added.

Martina Milburn, chief executive of the Prince's Trust, claimed the economy needs fresh input and young inspiration, adding that the recession should not mean putting the brake on creativity.

She added: "It is fantastic that so many young people are having ideas. Now it is vital we provide these entrepreneurs with the support they need to make their businesses work."

Last week, the government announced the availability of £1 million in extra funding, designed to help more young people start their own businesses.

Conditions easing in UK jobs market

Tue, 10 Nov 2009 12:15:10 GMT

Fewer firms are now planning to make redundancies in the UK, according to a new report.

The latest Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) and KPMG suggests that market conditions are improving and firms are less likely to cut their headcount than in previous months.

However, it also suggested that reduced demand for labour means that the jobs market remains a long way from returning to good health.

Pay rises continue to be "modest" and working hours are still being cut at many firms, the study found.

Gerwyn Davies of the CIPD said conditions are "not anywhere near as bad as they were earlier in the year, when redundancies spread through the economy like a virus".

Indeed, there is "growing hope" that the decline in job prospects may slow even further in the next year, he stated.

Last week, PricewaterhouseCoopers predicted that despite the improving conditions, the UK unemployment rate will still reach the three million mark by the end of next year.

The professional services giant said the jobless rate rose from 5.2 per cent in the first quarter of 2008 to 7.8 per cent in the second quarter of 2009, adding that this trend will take some time to reverse.

Pay freezes set to end in 2010

Mon, 09 Nov 2009 15:46:09 GMT

Pay freezes are set to come to an end next year, a new study has indicated.

According to research conducted by Mercer, optimism about the economic recovery is gathering pace, meaning more employers are considering raising salaries.

In the third quarter of 2009, 76 per cent of business leaders questioned said their firm was not considering a pay freeze in 2010 – a marked improvement on the previous two quarters.

Additionally, no organisations surveyed said they were planning a promotion freeze in 2010.

Hannah Perera, a principal in Mercer's human capital business and a specialist in executive remuneration, did note that many firms may look to offer other benefits to employees aside from financial reward.

She stated: "Cash, tarnished by the role of bonuses in the economic slump, is no longer king in the eyes of employers.

"It's being usurped by an emphasis on employee engagement and a focus on motivating specific high value employees. Whether this 'new normal' approach continues when the economy gathers pace again remains to be seen."

However, Ms Perera suggested that wage rises may be needed to appease companies' top performing employees.

Last week, the Hay Group warned that firms face losing their star employees if they do not reward them financially for their efforts during the recession.

Adaptability aiding small firms in recession battle

Mon, 09 Nov 2009 15:44:09 GMT

The ability of many small and medium-sized enterprises (SMEs) to react to changing markets quickly is helping them to record strong profits, a study has indicated.

Research conducted by Kingston University on behalf of the Workspace Group, suggests that the flexible SME community has performed far better than many forecasters thought possible during the UK's worst recession since the 1930s.

Some 48 per cent of SMEs either maintained or increased their levels of profitability in 2008-09, the report found, while 46 per cent maintained or actually improved upon sales volumes achieved before the downturn.

Demonstrating their agility, 93 per cent took steps to win new business and 88 per cent introduced cost-cutting initiatives.

In addition, 58 per cent of companies introduced new products or services, while 58 per cent of business owners worked longer hours in a bid to raise productivity.

Professor David Smallbone and his colleagues at Kingston University stated that the recession so far has represented "both a challenge and an opportunity" for UK firms.

They commented: "Although limited resources render small firms vulnerable to changes in the business environment, making survival a challenge, they are able to exert an important influence over their own performance and survival.

"The SME sector has demonstrated its resilience throughout this period, which bodes well for the economy as we gradually move out of recession."

Last week, the Confederation of British Industry's Trends Survey indicated that confidence is rising within the UK SME sector.

Government pledges support to female businesses

Mon, 09 Nov 2009 15:40:09 GMT

The government has announced new plans to help female entrepreneurs establish a foothold in the business sector.

A Women's Enterprise Champion is to be installed, while support in critical areas such as access to finance, procurement opportunities, advocacy and data is to be enhanced.

Greater support for female-led companies is also set to be offered by the banks, according to the Department for Business, Innovation and Skills.

It said confidence "is a critical issue" in changing the mindset of potential female entrepreneurs, and they must feel as if they have the backing to establish and grow their companies.

Commenting on the announcement, Tatjana Hine, president of the British Association of Women Entrepreneurs, said the initiative will be "fantastic if it works".

She said the champion must be somebody who has actually experienced entrepreneurism, as within government organisations there are already many people who lecture on such topics but have no proven expertise.

Ms Hine added: "It has been much more difficult for women than it has for men in the past [to gain finance], but I do feel that after this crisis now, banks are actually looking at women's businesses differently."

They tend not to be as large and have as much debt as male-operated firms, she said.

"On the whole I think banks have over the last few months become more friendly towards women entrepreneurs. It would be nice if they could continue to be so."

Business leaders can limit employee stress problems

Mon, 09 Nov 2009 15:30:09 GMT

Mental illness at work is estimated to cost UK employers £28.3 billion, the National Institute for Health and Clinical Excellence (Nice) has said.

According to the organisation, the prevention and early identification of mental health problems could lead to savings for employers.

Neil Wilson, managing director at Badenoch & Clark, called the figure "shocking" and urged employers to take steps to combat stress and other related issues.

He stated: "We can't get rid of workplace stress, it will always be there. It's about how we are able to cope with it, deal with it and manage it."

One step employers can take to reduce incidences is make their workers feel valued, Mr Wilson suggested, as a lot of stress problems stem from the way staff are treated.

He stated: "It's just about regular communication and employers telling people where they stand and giving people feedback.

"Sometimes people operate in a void where they don't quite understand why they are being asked to do certain things... the context of what [they] are doing is missing and that leads on to problems."

According to the latest Badenoch & Clark employment study, 71 per cent of workers feel they are unable to raise their concerns with management.

FSB calls for resignation of Enterprise Tsar

Fri, 06 Nov 2009 14:27:06 GMT

The Federation of Small Businesses (FSB) has called for the resignation of Lord Sugar, claiming his position as Enterprise Tsar is no longer tenable.

Comments made by the Amstrad founder earlier in the week have angered the federation, which discussed its response at a national council meeting.

Lord Sugar had stated his belief that 85 per cent of small businesses have no reason to moan about limited access to finance, as they are not worth lending to.

He suggested that many company bosses had been "living in Disneyland" if they believed they deserve credit from the banks.

FSB national chairman John Wright said the federation was "extremely disappointed" by the comments made about small firms.

"Despite being appointed by the government to champion business in the UK, Lord Sugar seems to have no grasp of the hard work small businesses do and the role they play in employing six in ten of the country's private sector workforce and contributing to more than half of UK gross domestic product," he added.

Mr Wright said the language the peer had used to describe this country's small business owners was "hardly appropriate" given his current role, adding that FSB members had been in touch to complain.

Lord Sugar, who has achieved cult celebrity status through his role on BBC1's hit show The Apprentice, was given his government title just five months ago.

Card transaction costs affecting small firms

Fri, 06 Nov 2009 14:26:06 GMT

Small businesses should assess the market to see if they can reduce the cost of processing card payments, it has been claimed.

According to the Forum of Private Business (FPB), many companies are paying steep rates to the providers of credit card merchant services because they do not have the time or resources to shop around for a better deal.

Some are not aware they can use the credit card merchant services provided by lenders other than their existing banks, the forum claimed.

Nick Palin, the FPB's director of finance, said the prices for merchant services are increasing, potentially increasing the pressures placed upon small firms.

He said: "Controlling costs is so important yet many businesses simply do not review how much they spend on taking card payments.

"The solution is to shop around, but this is easier said than done for the majority of small businesses – some are not even aware that switching to another provider is an option.

According to the FPB, traders who do not take card payments are increasingly losing out on business, as spending on plastic continues to rise.

It reports that over 65 per cent of all retail transactions were completed by card in 2008, with a total value of £360 billion.

Suggested business confidence rise welcomed

Fri, 06 Nov 2009 14:24:06 GMT

Earlier this week, the Confederation of British Industry (CBI) reported that although demand for their goods has fallen over the past three months, many small firms feel trade is recovering.

Out of 424 business leaders questioned in the CBI's latest Trends Survey, nine per cent said they were more optimistic about their current circumstances, with companies expecting their order accounts to level out in the coming quarter.

Commenting on the study, Harry Katz, principal of Norwest Consultants, said the news was "marvellous".

He added: "That is excellent news, I'm delighted. It follows the manufacturing industry news this week [from the CIPS/Markit Purchasing Managers' Index] that there has been a bit of a resurgence in the sector."

Mr Katz said an increase in demand for hi-tech, high innovation goods was leading to greater optimism within the sector, even if credit conditions remain constrained.

Consumer confidence appears to be on the rise as well, according to the latest report from the British Retail Consortium and Nielsen.

The firms claimed that levels of optimism have reached an 18-month high, despite continued uncertainty over jobs.

SMEs looking to hire this winter

Thu, 05 Nov 2009 15:35:05 GMT

Despite the economic downturn, almost a fifth of small and medium-sized enterprises (SMEs) intend to take on additional members of staff ahead of the Christmas period, it has been reported.

The Santander Corporate Group has discovered that 17 per cent of 1,019 SMEs hope to increase their employment numbers in the near future.

In comparison, just one in ten businesses plans to make redundancies, while around seven in ten expect to maintain current workforce levels.

SMEs generating a £1 million to £5 million turnover show the highest likelihood of recruiting more staff, followed by those with annual revenues of between £5 million and £25 million, Santander says.

A spokesperson from the Federation of Small Businesses (FSB) welcomed the news, but remained realistic.

He stated: "This is a positive development, but there is still work to be done.

"The FSB would like to see the establishment of dedicated small business managers inside job centres and closer links between Jobcentre Plus, Businesslink and skills boards."

Last week, the Confederation of British Industry's quarterly SME Trends Survey reported that confidence is on the rise within the sector.

It suggested that SMEs are the most optimistic about their business situation since April 2007.

Expert warns of increasing malware risks

Thu, 05 Nov 2009 15:33:05 GMT

Avoiding malware is becoming increasingly difficult as its creators are making it more advanced, it has been claimed.

Tom Kelchner, research centre manager at Sunbelt Software, an antivirus and antispyware provider, said there is no doubt that spotting malicious software is becoming an increasingly difficult task.

He commented: "Malware creators are becoming more creative in the way they produce their malicious code. This is in part to try and beat antivirus and other malware prevention tools, which continue to provide a successful defence against malware, but also to deceive and trick users."

Mr Kelchner advised internet users to "be vigilant" and ensure their antivirus applications are fully up to date.

"Users should avoid opening any attachments, even from trusted sources, without first running a scan on the file," he stated.

Rogue security software was the largest security threat to Microsoft customers in the first half of 2009, it was reported this week.

The seventh Microsoft Security Intelligence Report indicated that such software takes advantage of internet users' desire to keep their computer protected.

However, on a more positive note, it was reported that 20 per cent fewer customers were affected by rogue infections during the past six months.

Employee engagement 'key to reducing staff attrition'

Thu, 05 Nov 2009 15:30:05 GMT

Firms must place a strong focus upon employee engagement as the economy emerges from recession, it has been claimed.

Global management consultancy the Hay Group has warned that firms face losing many of their top-performing employees if they do not adequately reward them for sacrifices they have made during the recession.

According to Dr Stephen Choo, a regional director within the firm, increasing work opportunities could lead to a talent exodus from many firms, leading to lost skills, productivity and increased recruitment and training costs.

Speaking to Channel News Asia, he said that talented workers are likely to remain with their current employer if they are provided with the incentives to do so.

He said it is necessary for firms to offer professional development opportunities such as additional training and the potential for promotion.

Dr Choo added that leadership is also an important issue, as firms which have good role models for younger employees to follow may be able to encourage staff retention.

Last month, HSBC Private Bank regional chief executive Monica Wong told eFinancialCareers that firms can reduce employee attrition by offering attractive pay, boosting employees' work/life balance and treating staff members fairly.

Good value still attracts consumer spending

Thu, 05 Nov 2009 15:29:05 GMT

Customers are still prepared to part with their hard-earned income, but they may need greater persuasion from retailers, it has been suggested.

According to Andy Garbutt, retail and leisure director at professional services firm PricewaterhouseCoopers, consumers have become more frugal during the recession and will only spend when they are sure there are clear benefits to doing so.

He was commenting after the professional services firm reported that the majority of people who have traded down during the downturn intend to continue buying cheaper products when the recovery comes.

Mr Garbutt stated that consumers are now more astute than ever when it comes to identifying purchase benefits.

As a result, they have a clear idea in their mind of how much they are prepared to pay for particular products and services, he claimed.

"The challenge for all companies is to understand how this dynamic is working in their own sector, so that they can start competing with the low cost operators on value, not price," he stated.

Earlier this week, Nielsen and the British Retail Consortium reported that consumer confidence has reached its highest point in 18 months in the UK – an index score of 75, ten points higher than the all-time low witnessed in April 2009.

Recession encouraging women to start businesses

Wed, 04 Nov 2009 15:50:04 GMT

The recession has served as a catalyst for more female professionals to enter the world of self-employment, a new study has indicated.

According to The Rise of Lipstick Entrepreneurs report, commissioned by Avon UK, the number of female-owned start-up businesses has increased in the UK during the downturn.

It suggests that entrepreneurship has in fact "reached a tipping point", with the number of such enterprises predicted to double in the next ten years, rising to over two million.

A number of factors have contributed to this trend, the report indicates, including the advent of flexible working, the opportunities created by the internet, the growing acceptance of home working as a viable business model and recession-driven redundancies.

Ann Segatti, president of Avon UK, said the study confirms a pattern already seen in history – that when the going gets tough, women see opportunities and run with them.

She commented: "The Lipstick Entrepreneur has discovered she can have it all – balancing her family needs with her ambitious goals.

"Widespread redundancies have led many women to conclude that starting their own business no longer offers significantly less job security than contracted employment, offering women more in benefits in terms of family friendly flexible hours in an environment unrestricted by glass ceilings."

Earlier this year, a survey conducted by Vodafone indicated that six per cent of women feel they have learned many new skills during the recession compared with only 2.5 per cent of men.

Companies reminded of employee stress dangers

Wed, 04 Nov 2009 15:48:04 GMT

Stress, depression and anxiety accounts for over 13.5 million workdays being lost each year, it has been reported.

Commenting as the International Stress Management Association (ISMA) stages National Stress Awareness Day (NSAD), Ann McCracken, chair of the organisation, called on employers to support staff members suffering from the condition.

She explained that it is the single biggest cause of sickness absence in the UK, and therefore responsible for blighting the productivity and profitability of businesses.

Ms McCracken said the aim of the nationwide campaign is to increase public awareness about the effects of stress, the treatments available and, most importantly, to help sufferers seek help.

NSAD was created "out of necessity" rather than requirement, given the gravity of the problem, she stated.

"NSAD will be providing free drop-in advice and access to stress advisors located in selected Boots stores and other venues nationwide," Ms McCracken added.

ISMA is providing a network of more than 60 advisors covering the length and breadth of the country, she noted.

Chris Clarke, a spokesperson for the ISMA, recently claimed that everyone reacts differently when subjected to overwhelming pressures, so it is up to managers to understand individual employees when looking for signs of stress.

Small firms require fast broadband connections

Wed, 04 Nov 2009 15:46:04 GMT

Small businesses will suffer if the government fails to take decisive action on the provision of high-speed broadband, it has been suggested.

According to John Wright, national chairman of the Federation of Small Businesses (FSB), firms are not receiving the speeds they need to maximise their productivity.

With the rise in online retail, it has become essential for all small businesses to have access to a fast and reliable internet connection, he said, as their very futures depend on it.

Mr Wright noted: "By 2012, £1 in every £5 will come from online commerce, but if small businesses are to compete, the government must take bolder action.

"With Japan leading the way, making high-speed broadband of 90Mbps available to everyone, the FSB urges the government to do more."

Speaking to the Daily Telegraph last week, Digital Britain MP Stephen Timms claimed that many households and businesses now regard broadband as being an "essential" part of their lives.

The government has pledged to provide a minimum universal speed of 2Mbps by 2012, but this plan has been widely criticised as being inadequate, in light of the fact that many private internet service providers are already offering far greater speeds.

Rise in customer confidence reported

Tue, 03 Nov 2009 14:13:03 GMT

Consumer confidence has risen to an 18-month high, despite major fears over jobs, it has been claimed.

According to Nielsen and the British Retail Consortium (BRC), the Consumer Confidence Index score was 75 in October, up from 65 in April.

However, the organisations pointed out that this figure was still weak when compared to two or three years ago.

Justin Sargent, managing director at Nielsen said: "This latest poll shows that the confidence of the nation continues to improve, though consumers remain very guarded and we are still a long way from the confidence levels we saw prior to the economic meltdown."

Echoing the comments, BRC director general Stephen Robertson said there is "no question" that the general mood of customers is better than a year ago, when conditions were dire, but improvement has been slow so far.

"Half of consumers believe we'll still be in recession in a year's time. More than half are worried about jobs and their own finances and that will hold back full scale retail recovery well into next year," he stated.

Last month, the Office for National Statistics reported that retail sales remained static during September, the second consecutive month without change.

Password protection vital for dedicated servers

Tue, 03 Nov 2009 14:11:03 GMT

Small firms which use dedicated servers to support their IT systems should ensure they are aware of all potential security concerns, it has been claimed.

According to THN, one of the first things a company should do after purchasing a dedicated server – which are primarily used to support websites expecting a high level of traffic - is change the default password.

The firm says the access code is a key component in security for any server and firms must know precisely who is able to access the system.

Since the host firm may have set a default or emailed it to the customer in plain text, it is possible that individuals working outside the user company could hack in.

THN commented: "Because there is a risk that someone else knows the password, it is essential that it is changed immediately."

Different access codes should be used for personal and administrative accounts, the site claimed, while all passwords should contain a combination of letters and numbers to make them difficult to guess.

Finally, it advises that the access code should be changed at regular intervals.

Last month, William Beer, a director at professional service firm PricewaterhouseCoopers, claimed that firms cannot afford to reduce their security spend.

Gender pay gap remains a problem

Tue, 03 Nov 2009 14:10:03 GMT

Many women are still not getting a fair deal when it comes to pay, according to Everywoman.

According to Maxine Benson, co-founder of the organisation, the gender pay gap "is still a problem" for many female professionals.

She said many women are not even aware of this earnings disparity and in instances where they are conscious that male colleagues are being paid more, they are not confident enough to raise the issue with employers.

"Even with the most senior of women, many of them grapple with having confidence to talk about money and request the pay that they should have," said Ms Benson.

She said it is "imperative" that awareness of the gender pay gap is raised, as the issue needs to be brought out into the open and discussed if progress is to be made.

"As long as things are hidden and not spoken about, they will never go away, whether we are talking about pay or any form of discrimination," Ms Benson said.

According to a recent study conducted by the Fawcett Society, 85 per cent of the public support mandatory pay audits being introduced to help close the gender pay gap.

Confidence rising among smaller manufacturing firms

Mon, 02 Nov 2009 12:58:02 GMT

The majority of small and medium-sized manufacturers expect their order books to stabilise during the next quarter, it has been reported.

According to the latest Trends Survey from the Confederation of British Industry (CBI), confidence is improving despite demand for goods depressing during the last three months,

Firms are at their most optimistic about the business situation in two and a half years, the study has found, with the balance of firms feeling positive up to nine per cent, its highest level since April 2007.

Russel Griggs, chairman of the CBI's Small and Medium-Sized Enterprise Council, said it was good to see that such firms feel more confident about business prospects than they have for some time.

"However, current conditions remain challenging for many small and medium-sized UK manufacturers, with orders and output still falling, and uncertainty about demand a major concern," he added.

Mr Griggs noted that accessing finance remains a particular problem for this size of business, with a record proportion saying it is affecting their ability to invest.

In other manufacturing news, the government has increased the budget of its manufacturing technology centre – which aims to promote innovation and career opportunities in the sector - to £40 million.

Expert says support needed for IT business growth

Mon, 02 Nov 2009 12:57:02 GMT

It is vital that the UK economy supports small enterprises looking to expand, according to one commentator.

Carrie Hartnell, head of industry strategy at the IT industry association Intellect, said the UK is blessed with a significant number of small innovative companies, particularly in the technology sector.

However, she suggested that there is then a gap in the market between them and the large, primarily foreign-owned firms which generate the majority of IT revenue.

Ms Hartnell claimed that the UK is "seizing the innovative and entrepreneurial environment", with support available for IT professionals wishing to establish new firms.

However, she said the whole UK ecosystem needs supporting, allowing small companies to develop, grow and then remain sustainable rather than simply selling up to larger rivals or remaining at the size they are.

"The smaller companies basically form a foundation for the technology industry in the UK," Ms Hartnell said.

"So, for us, for the UK, [it is important that] that environment is there to both grow and nurture small companies and, also, the kind of environment you get with the larger companies, [which] will then help them."

According to Booz & Company, eight out of the IT sector's top ten research and development spenders increased their investment last year.

Small business taxation threatens to stifle economy

Mon, 02 Nov 2009 12:54:02 GMT

Any move to increase taxation on small businesses would send out the wrong messages, it has been claimed.

Commenting after both the Federation of Small Businesses (FSB) and Confederation of British Industry called for government restraint in this area, the National Federation of Enterprise Agencies has echoed the message.

George Derbyshire, chief executive of the organisation, said small firms are going to be "the engine that leads the economy out of the recession".

He said that the small business sector is where the innovation and dynamism comes from, and it is essential for the economy as a whole that this is not stifled.

Mr Derbyshire added: "Just to bang on an extra amount of corporation tax or changes in National Insurance or whatever may be on the agenda, is just sending out the wrong message - that we don't appreciate your contribution."

Firms need to be incentivised to carry on the good work they are doing, he claimed.

"A creative approach to small business, particularly on the taxation side, will do more for the economy in the long-term, because innovation will contribute towards economic growth," he added.

The FSB warned last week that raising taxes on small companies would lead to an increase in the UK unemployment rate.

Mixed views over possible minimum wage rise

Fri, 30 Oct 2009 11:46:30 GMT

The Trades Union Congress (TUC) is calling for the national minimum wage to be increased to £6 an hour.

In its meeting today with the Low Pay Commission, which outlines recommendations to government on the issue, the TUC will make the case for a 3.5 per cent increase in the period from October 2010 to September 2011.

However, Policy Exchange, the centre-right think tank, has reacted to the proposals with dismay.

Lawrence Kay, research fellow at the group's economic unit, said this is no time to raise the wage burden on employers.

He added: "We want them to create new jobs not just pay the workers they already have more money."

"The cost of living for people on low wages is currently falling. There is no reason to think that people who have jobs are falling further into poverty."

Offering a more positive perspective, Compass general secretary Gavin Hayes said he did not believe that a 20p rise to the minimum wage would drive companies out of business.

He said it is "absolutely right" that those at the bottom of the career ladder get paid decent wages for the work that they do.

Mr Hayes said there is no need to insist on a minimum wage, but fundamentally the government needs to be working towards a living wage for the entire country.

Smart meters can help small firms reduce energy bills

Fri, 30 Oct 2009 11:43:30 GMT

Businesses will be able to monitor their energy use using a new Google smart meter, it has been reported.

Google PowerMeter is a free software tool that provides consumers with information on their energy consumption, with a view to them reducing costs.

The software receives information from utility smart meters and on-site energy management devices and visualises this information on a personalised iGoogle homepage.

Commenting on the development, Peter Jenkins, head of communications and public affairs at the Energy Retail Association, said smart meters will revolutionise the way customers think about and pay for their energy.

"For the first time they will be able to see how much energy they use in real time, and to look at their energy use today and compare it with what they used the day before, week before, month before and even the year before," he commented.

"Customers will be able to see where they can make changes to their behaviour in order to save energy, and save money."

Mr Jenkins claimed that the major energy firms are supporting the national roll-out of smart technology, but the government needs to provide clarity on its delivery plan.

Earlier this month, the Citizens Advice Bureau claimed that by switching energy provider, many consumers and businesses can reduce their electricity and gas bills.

Government urged to commit to small firm support

Fri, 30 Oct 2009 10:46:30 GMT

Support for small businesses must not be sacrificed if and when the government embarks on spending cuts, it has been claimed.

With net borrowing set to reach £185 billion by the end of 2009, the Forum of Private Business (FPB) says substantial cutbacks are needed to plug the gap in public finances.

In view of this, it has submitted its proposals for "responsible growth" ahead of the Chancellor's Pre-Budget Report, which is expected to take place in November.

The FPB is calling for improvements to existing support schemes, reductions in small firms' corporation tax bills, incentives for micro-businesses recruiting staff and a comprehensive regulatory review.

Matt Goodman, the FPB's policy representative, said despite recent suggestions that the economy is heading out of the woods, it is clear there is still a difficult road ahead.

He added: "Government cuts should not include those programmes that are making a real difference for struggling firms.

"The next 18 months will be crucial. As the main drivers of growth, small businesses need to be placed at the heart of plans for economic recovery so they can make the most of future opportunities."

Last week, the Office for National Statistics confirmed that the UK remains in recession for the sixth consecutive quarter.

Firms reminded of online payroll duty

Fri, 30 Oct 2009 10:43:30 GMT

Small firms have been reminded that electronic payroll filing will be compulsory for all companies from 2009-10.

According to software supplier IRIS, HM Revenue & Customs (HMRC) will require all employers to file their P35 and P14 year-end tax and national insurance documents online.

The firm is concerned that many businesses are unprepared for this change and consequently has issued a guide to the HMRC requirements.

IRIS managing director Oliver Shaw said the publication offered online filing support, plus information on relevant hardware, software and the potential for social media to make this task easier.

He stated that the guide had been created to provide some practical, easy to understand help for small business owners so they can ensure they meet the new HMRC requirements.

Mr Shaw commented: "Until now, organisations with fewer than 50 employees have been free to file their returns using a number of methods.

"Larger organisations have been compelled to file electronically since 2005; however, new regulations make electronic filing compulsory for all businesses from the end of this fiscal year."

Earlier this week, the Federation of Small Businesses warned against raising small business taxes, claiming any such move could affect the ability if such firms to help the UK's economic recovery.

Businesses confused over hiring position

Thu, 29 Oct 2009 13:53:29 GMT

Employers cannot be blamed for a tentative approach towards internships and apprenticeships, it has been claimed.

According to Rachel Krys, campaign director of the Employers Forum on Age, potential hirers are in a "difficult" position at the moment.

She said they are being told on one hand that internships contravene minimum wage and age discrimination regulation, but they are still being encouraged to take on young workers to keep the unemployment rate down.

"People talk about volunteering and internships being one of the solutions to this problem. I think employers are getting a bit of a mixed message," Ms Krys added.

She suggested that the government needs to have a well-thought-out approach to reducing youth unemployment through business engagement.

"Employers need to be very clear and given the right information about what they can and cannot do in terms of work experience and internships. We either are encouraging volunteering or we are not," Ms Krys added.

"Employers need to be told what is lawful and what is not, and the government needs to take the initiative there."

According to Volunteering England, 86 per cent of Volunteer Centres have seen an increase in enquiries from those willing to offer their services unpaid.

IT expert says Microsoft domination will continue

Thu, 29 Oct 2009 13:51:29 GMT

Windows 7 will continue Microsoft's dominant operating systems (OS) market share, it has been claimed.

Paul Trotter, editor at PC Advisor, a monthly IT support magazine, described Windows 7 as "a worthy upgrade" to its predecessor Vista.

However, Mr Trotter said that Microsoft's OS domination is such that even if Windows 7 had failed, the firm would have remained the leader in the market "for some years yet".

He added that the "pretenders to Windows' throne" were just that, with Google OS and Apple's Snow Leopard not genuine contenders to take away a significant market share.

Mr Trotter said that Microsoft is also looking at operating system neutral developments like browser-based applications.

This is because the firm is "wise to the fact" that an eventual shift to such software is expected, he stated.

Last week, information security and unified communications expert Tony Bradley predicted that the new Windows 7 could emerge as "the greatest operating system of all time".

He said only the individual user could decide if this is the case, but based upon price, market share, stability, software support and longevity, the system could prove to be Microsoft's greatest development as yet.

Government warned against raising small business taxes

Thu, 29 Oct 2009 11:50:29 GMT

A new report has warned that raising taxes for small businesses would cost the UK employment market hundreds of thousands of jobs.

Commissioned by the Federation of Small Businesses (FSB), the Centre for Economics and Business Research (CEBR) report indicates that increasing employers' National Insurance Contributions (NICs)– as is planned for April 2011 – will cost the economy 57,000 jobs,

In addition, increasing corporation tax from 21 to 26 per cent – establishing parity with larger firms – would see another 100,000 roles disappear, CEBR claimed.

This act would reduce economic output by £4.3 billion over ten years, the report suggests, but lower the public sector deficit by just £1.6 billion.

According to the FSB, many businesses are already operating on very small margins and increasing their costs, either through increased corporation tax or NICs, would "push many of them over the edge".

John Walker, national policy chairman at the FSB, said taxing small businesses to help reduce the public sector deficit is "a dead-end".

"Small businesses are the country's economic drivers and they cannot play their part in pulling the economy out of recession if they are faced with increasing taxes," he added.

"The FSB is calling for a freeze in employers' NICs as the most constructive way of tackling the challenge of rising unemployment."

According to a new study conducted by PricewaterhouseCoopers, the instability of the UK tax regime is a major concern for business leaders.

FSB warns of Royal Mail strike costs

Thu, 29 Oct 2009 11:46:29 GMT

Small companies could lose between £500 and £5,000 as a result of the national postal strikes, it has been claimed.

According to a study conducted by the Federation of Small Businesses (FSB), 46 per cent of firms expect to incur losses due to the current Royal Mail workers' industrial action.

Some 42 per cent said they could lose trade in the approach to Christmas, while 40 per cent claimed their business reputation could be damaged.

John Wright, national chairman of the FSB, said national postal strikes have "a devastating impact" on already struggling small businesses.

He stated: "The wildcat strikes across the regions have already cost small firms dearly, with many predicting the cost to their business reaching several hundred pounds, but these national strikes are having a much more damaging impact.

"Small firms rely on the Royal Mail to send their business post but they are caught in a classic Catch-22 situation."

Mr Wright said many are considering deserting the Royal Mail because the service is unreliable, but at the same time they are unable to afford alternative carriers.

IT PRO technology editor Benny Har-Even claimed last week that small firms may turn to the internet for post alternatives if the Royal Mail proves to be unreliable.

Mobile technology saves time and money

Wed, 28 Oct 2009 13:40:28 GMT

Mobile technology can help small businesses save time and improve employee efficiency, it has been claimed.

Robert Epstein, head of small and medium-sized business at Microsoft, told Fresh Business Thinking that "time is money".

He said that technology such as internet-enabled laptops and smartphones - which allow people to take calls, view mails and surf the internet – enable business owners and employees to stay in constant contact with each other, their employer and customers.

Mobile working allows employees to use their time productively wherever they are, he suggested, in the office, home or on the move.

"The end result is that it allows you to focus on driving business profit rather than having you and your staff waste valuable time travelling to the office," he added.

Earlier this year, Brett Caine, general manager of mobile working firm Citrix Online, claimed that internet access and collaboration technologies are allowing businesses of all sizes to mobilise their workforce.

He suggested that firms can stay up to date with the latest market innovations without having to invest in expensive and complex on-premise infrastructure.

Mr Caine claimed that for firms wishing to expand without making a significant financial outlay, mobile working may be a great option.

US small businesses looking to rehire

Wed, 28 Oct 2009 13:38:28 GMT

New research has indicated that many US small businesses are getting ready to rehire as they look to the post-recession future.

In a study which may reflect a similar UK trend, the latest Intuit Payroll survey indicates that 44 per cent of firms are planning to take on new staff over the next 12 months.

The company says that where possible, employers are looking to boost their skills base, with 50 per cent looking for a 'people person' or a 'jack of all trades'.

A further 11 per cent said they were hoping to hire a 'creative genius', while four per cent claimed to be searching for a 'mathematical wizard'.

Some 60 per cent of owners now expect their business to grow in the next year, with this figure rising to 80 per cent for those firms founded in the last three years.

Nora Denzel, senior vice-president of Intuit's Employee Management Solutions Division, said the outlook is now more encouraging for the US employment market.

She added: "Nobody is uncorking the champagne bottle quite yet, but we are starting to see small signs of optimism."

Last month, Business Daily writer Kimanzi Mwalya claimed that forming a detailed strategic plan is the key to company growth.

Entrepreneurs back decision to work for themselves

Wed, 28 Oct 2009 13:37:28 GMT

The overwhelming majority of entrepreneurs are satisfied with their decision to become self-employed, despite the pressures of the recession, a new study has indicated.

Research conducted by small business support community Biznik indicates that passion and values continue to be the leading motivations for individuals starting their own firms.

Some 33 per cent of respondents said they wanted to do something they enjoy, while 60 per cent claimed personal interests and values were the main driver behind their entrepreneurial pursuits.

And despite 60 per cent of owners being happy with the performance of their business in the current climate, just nine per cent wish they had remained in employment.

Biznik co-founder Dan McComb said that overall, the study supports the entrepreneurial spirit and the value of following your passions and personal ideals to find satisfaction and financial success.

He added: "We saw that, even in tough economic times, people are able to quickly adapt to changing technologies and market dynamics and do what they need to do to keep driving forward."

According to Business Link, the recession has actually persuaded more people to commit to start-up enterprises than before.

The advisory service says self-employment is being considered a "definite alternative" at a time when job security is low across the board.

Hackers pose continued threat to businesses

Tue, 27 Oct 2009 15:23:27 GMT

Details of around 500,000 people have been stolen from the Guardian Jobs website's database, it has emerged.

Computer hackers targeted the website and extracted account information relevant to around five per cent of the site's user base.

Yuval Ben-Itzhak, chief technology officer for web security company Finjan, said this latest hack re-emphasised the need for firms to be on their guard against online crime.

He stated: "For every thousand lines of code there is at least one vulnerability hidden in there. They are out there, waiting to be discovered."

Mr Ben-Itzhak explained that the market for information of this type is large, and the data gives criminals a range of options.

They can "do the simple thing of sending them [the affected user] spam messages, or phishing messages", he proposed, while they might also "use this pretend information and auction it online".

According to Mr Ben-Itzhak, the criminals may have either directly attacked the site, or used an already-compromised computer to gain access.

This hack approach was "like coming in through the side door" and allowed the hacker to "bypass all of the security", he claimed.

Research conducted by Lloyds TSB showed that 38 per cent of British people have now experienced ID fraud.

The study reported that it takes an average of 539 days for someone to discover they have become a victim.

Firms aware of email marketing potential

Tue, 27 Oct 2009 15:08:27 GMT

The majority of companies now recognise the various benefits of email marketing, it has been suggested.

Industry commentator Douglas Quenqua said that extending the reach of email messages is "an intriguing idea" to almost all marketers in the current business environment.

Writing for DMNews.com, he explained that the potential for firms to stretch their budgets further using this low-cost channel is a major appeal.

Accordingly, Mr Quenqua said email marketing remains "on a significant upswing" as firms seek to do more with less.

He told the website: "It's an affordable, highly targeted channel with almost no start-up costs, and it hits consumers where they spend most of their time online: right in the inbox."

Earlier this week, Mike May, head of insights at Real Magnet, claimed that having a clearly identified, quality strategy can be key to the success of email marketing campaigns.

He suggested that "a long view" should always be taken over issues such as design, content and potential incentives, with firms looking to the long-term benefits rather than short-term gains.

Mr May said firms that bombard their subscribers with irrelevant mail risk alienating them and ultimately losing their custom.

Expert says customer service training is essential

Tue, 27 Oct 2009 15:04:27 GMT

Businesses cannot afford to reduce the amount they spend on customer service training, it has been claimed.

According to Jo Causon, chief executive of the National Institute of Customer Service, firms which make cutbacks in this area not only risk losing employees – and therefore face higher recruitment costs – but are also likely to offer inferior levels of service.

She said it is "dangerous" to see training as the place to cut costs in the current economic environment, as this policy may only add to a firm's troubles.

Ms Causon was commenting after the institute reported that 30 per cent of firms have cut training levels and a further 21 per cent have laid off customer-facing staff.

Despite previous research showing that firms with a reputation for service excellence generate greater profits than their same-sector rivals, many companies appear to be making cutbacks in this area.

Ms Causon emphasised her view that employees who are "on the front line" must be given the tools they need to do their job most effectively.

"They need to be highly trained and motivated to consistently meet and even exceed a customer’s expectations, with technology working in parallel, so that people, processes and strategy are truly aligned around the whole customer experience," she added.

Earlier this month, Ms Causon described customer service as "the vital differentiator in business today".

Study suggests technology helping firms survive

Mon, 26 Oct 2009 14:11:26 GMT

Small businesses at the forefront of technology adoption have been the least impacted by the recession, it has been reported.

According to research conducted by BT Business, supported by the Design Council and Prince's Trust, those which are reluctant to bring in new technology are suffering the most.

The study found that companies with a positive attitude to technology adoption had a 69 per cent better than average experience of the recession.

At the same time, those who have refused to embrace new ways of working have suffered a 34 per cent worse recession experience than others.

Indeed, 30 per cent of businesses said they had saved money by using technology, while 32 per cent have used it to network or gain advice and 28 per cent have attracted customers through its use.

Mick Hegarty, strategy director at BT Business, said that "more than ever", technology has "a critical role" to play in the future success of small businesses, helping them to find new customers, market themselves more effectively and reduce costs.

"Investing in better technology is emerging as a measure of success in the future for many businesses," he added.

Last week, Dan Oliver, editor of .netmagazine, reported that websites are increasingly vital business tools for small companies.

Employers urged to spot signs of stress

Mon, 26 Oct 2009 14:10:26 GMT

Employers should be looking to spot signs of stress in their employees, it has been suggested.

Chris Clarke, a spokesperson for the International Stress Management Association, noted that everyone reacts differently when subjected to overwhelming pressures, so it is up to managers to improve their understanding of individual employees.

He said they can look out for changes in individual's personal characteristics such as loss of concentration, failure to complete tasks, becoming distracted, and mood swings.

Another sign of stress may be becoming prone to accidents, Mr Clarke added, while other symptoms may include increased time off for minor sickness, working later or starting earlier for no apparent reason, tiredness, and withdrawing from interaction with colleagues or management.

Reliance upon medication - prescription, non-prescription and illegal - excessive smoking and significant changes in eating habits may also highlight problems, he suggested.

Mr Clarke stated: "Even though regulation has been in place for quite a long time now, many organisations still do not realise their responsibilities or have chosen to ignore their responsibilities and take the risk of enforcement or prosecution rather than carrying out their obligations.

"Tackling stress in the workplace has the potential to produce significant benefits to both the staff and the employer."

Last week, the Department for Work and Pensions minister Lord McKenzie said funds would be made available over the next two years to firms that launch projects to address issues such as stress and work-life balance.

UK remains in recession despite growth hopes

Fri, 23 Oct 2009 15:54:23 GMT

The UK economy has defied expectations by remaining in recession, following contraction of 0.4 per cent between July and September.

Latest data from the Office of National Statistics indicated that gross domestic product (GDP) declined for the sixth successive quarter, despite many economists expecting a return to growth.

Based upon the published estimate, the UK is now in the longest recession since records began in 1955.

The economy has now contracted by 5.2 per cent, affected in particular by a downturn in mining and services during Q3.

Commenting on the report, Brendan Barber, general secretary of the Trades Union Congress, said that even the co-ordinated world-wide stimulus has "not been able to halt the damage done by the financial crash".

He added: "This is now the longest recession in modern economic history. These worse-than-expected figures should head off the growing signs of complacency. The economy is still extremely fragile."

Earlier this week, business rescue group Begbies Traynor claimed that the UK could have reached the centre point of a 'W' shaped recession.

According to this theory, the economy will deteriorate again before showing sustained signs of improvement.

Royal Mail warned over business loyalty

Fri, 23 Oct 2009 15:53:23 GMT

Businesses and other organisations could begin to look to technology-based alternatives to post as Royal Mail workers strike, it has been claimed.

Echoing the view of Lord Mandelson, the secretary of state for business, innovation and skills, IT PRO technology editor Benny Har-Even said businesses are likely to turn to the internet.

He stated: "I would imagine that if the Royal Mail is proving unreliable, businesses and companies are going to start looking for alternatives, and technology can play a role in that.

"They might have traditionally relied on sending stuff in the mail, but they might look at technology. This is a grey area for security, but there are ways of sending things securely."

Mr Har-Even commented that there is technology built in to Windows 7 designed to make it easier for companies to connect to each other securely.

There are "definitely other possibilities" for firms if the Royal Mail strikes continue, he suggested.

Speaking in the House of Lords earlier this week, Lord Mandelson claimed the service needs to modernise to reflect growing text, email and direct debit use.

He said businesses would be quick to recognise that you bring can the Royal Mail to a halt, but it is impossible to stop the ever-present internet.

Expert says email marketing strategies are crucial

Fri, 23 Oct 2009 15:51:23 GMT

Small businesses should be focusing upon developing high quality email marketing strategies, it has been claimed.

Mike May, head of insights at Real Magnet, said firms should always take the "long view" where brand promotions are concerned.

Issues such as design, content and potential incentives should be considered in detail before the company launches into a strategy, he suggested, writing for MediaPost's Email Insider blog.

According to Mr May, email marketing success can make "the cash register ring instantly", but it is necessary to secure the long-term loyalty of customers and short-term gains are rarely the answer.

He stated: "You don't need me to tell you how to create an email strategy.

"You can probably imagine how your subscribers (and competitors) will react to one too many emails that miss its strategic mark, or don't deliver on the promise you made to people when they signed up."

In related news, Mobilize Mail claimed this week that email marketing materials should not be viewed merely as a platform for firms to communicate 'sales talk' to consumers.

The firm said that many companies can waste a key opportunity to connect with their audience by sending the wrong messages, as reported by BusinessBlogs.

Firms warned not to make silent calls

Fri, 23 Oct 2009 15:49:23 GMT

Companies which make silent calls to customers run the risk of seeing their reputations harmed, it has been claimed.

Kevin Brennan, the consumer minister claimed that such calls are "potentially damaging to the good name of the firms which make them".

He was commenting as the government launched a consultation to see whether it should raise the maximum fine available for firms causing "annoyance and distress" via silent calls from £50,000.

The Digital Britain and Consumer White Papers recently made commitments to increase the penalties for companies causing unnecessary harm to consumers through marketing work.

Mr Brennan claimed that by eliminating silent calls - which are generated by automated calling systems when live agents are unavailable – firms can see increased customer loyalty and reduced operational costs from handling complaints.

"It's important that consumers can have confidence that they are protected," he added.

"These fines will act as a clear deterrent to companies – if they don't change their ways they face a hefty fine."

For some years, media regulator Ofcom has warned firms not to abuse the rights of customers by making continuous silent sales calls.

FPB welcomes regional financial intermediary service

Thu, 22 Oct 2009 16:03:22 GMT

The Forum of Private Business (FPB) has welcomed the introduction of a regional financial intermediary service for small companies.

Available via Business Link, the service offers intensive support for firms struggling to access finance and strives to build the relationships between them and the banks.

The announcement comes after the FPB's Economic Downturn Panel reported that 66 per cent of bosses would welcome more localised support from their banks.

Some 61 per cent of bank managers also want to better understand small businesses, the panel found.

Nick Palin, the FPB's director of finance, said the lack of availability of credit remains a concern to many businesses and the cost of finance is still high.

He added: "Many small firms are being rejected simply because of their size or industry sector. The Business Link financial intermediary service, delivered locally and for eligible businesses, is a welcome step towards helping banks re-engage with their small business customers.

"We're calling on the banks to get behind this initiative publicly, so that owners of viable yet struggling businesses are encouraged to explore the help that is available."

David Molian, lecturer in entrepreneurship at the Cranfield School of Management, recently called for additional credit to be made available to small businesses suffering from the effects of recession.

Encryption fears over new wireless standard

Thu, 22 Oct 2009 12:50:22 GMT

A new standard will make it easier for wireless devices to connect to one another, it has been claimed, potentially improving mobile working options.

Wi-Fi Direct (WD) - a new specification being worked on by the Wi-Fi Alliance – is designed to allow WD-enabled devices to create peer-to-peer connections with each other on an ad-hoc basis.

However, despite the reduced hassle and complications users may benefit from, concerns have been raised over the security of this form of connection - known in the industry as 'tunnelling'.

John Dunne, the editor of Techworld magazine, said: "Wi-Fi is a bit of a compromise in terms of security, not because there are ways of securing it, but because it can be quite technically difficult to understand what it's doing when it's making a connection."

He explained that, with WD making it easier than ever for users to cross the airwaves and mingle their devices, there is a danger that users will become lax on security.

Mr Dunne claimed that if a link is to be set up between any two devices in any context, it has to be encrypted.

"Breaking and making encryption is what computers were invented to do and still, 70 years later, we don't use it very often, he added.

Fortify Software also warned this week that the WD standard poses a security threat to companies with Wi-Fi networks.

Bosses urged to seek debt advice

Thu, 22 Oct 2009 12:47:22 GMT

Business owners should be taking every step possible to safeguard the future of their businesses as the downturn ensues, it has been suggested.

A spokesperson for the UK Insolvency Helpline claimed that many firms are draining resources because of a lack of cash, increasing the risk of corporate failures.

He said there has been a 30 per cent increase in calls made about insolvency in recent months, attributable to the fact the banks are recommending this course of action.

The spokesperson said that in many cases, debts have got to the point where firms need to take initial advice.

"We are seeing a huge increase across the board, from all different types of companies," he added.

"It's a domino theory. First of all it is personal debt and then eventually it then goes to company debt."

Business rescue group Begbies Traynor has predicted a 'deluge of business failures' in 2010, as part of its latest report.

The group suggests that the UK may be at the mid-point of a 'W' shaped recession, but at present, the number of companies with significant and critical financial problems has fallen in absolute terms; both year on year, and quarter on quarter.

Women working has no negative effects on children

Tue, 20 Oct 2009 13:04:20 GMT

Women who work have no negative impacts upon their children's development, a new study has indicated.

Researchers at the Institute of Education in London found little evidence to support the theory that mental or behavioural problems can stem from an absent mother during infancy.

Heather Joshi, co-author of the study and a professor at the institute, said other factors such as home stability have a bigger impact on child development.

She told the Guardian: "There was evidence in some cases of a small negative impact [of women returning to work] in earlier decades – particularly for those born to working mothers in the 1970s and 1980s.

"But when we looked at this other batch of children, mostly born in the 1990s, we found that this smallish wrinkle in a very complicated pattern was not visible."

Among the reasons for this shift include the advent of flexible working, greater levels of parental support, changing social attitudes and improvements to childcare arrangements.

Jane Hopkins, founder of MumsClub, recently claimed that mothers can balance a healthy work and family life by starting a small business.

She claimed that women with families are increasingly looking to earn income in a different way, by enterprising and innovating.

Businesses continuing to risk data loss

Tue, 20 Oct 2009 12:59:20 GMT

Many firms still do not back-up or protect their data sufficiently, a report has found.

Some 34 per cent of small and medium-sized enterprises (SMEs) surveyed by Buffalo Technology admitted to having lost a company laptop within the past year.

In addition, 30 per cent admitted to having critical data stored only on a laptop and not backed up anywhere.

Steve Chase, business development manager for storage solution firm Iomega, said that SME's generally have an IT resource manager who is responsible for looking after company data.

"Most will have a single server or maybe two or three servers and they'll use those servers for applications, in-house," he suggested.

However, Mr Chase claimed that external storage solutions are becoming more popular with SMEs, as they recognise the need to ensure business continuity.

He added: "There's a definite growth in the amount of data any small business is generating. They are typically looking for ways to be more efficient in the processing of that data."

Buffalo Technology reported that 68 per cent of SMEs with important data saved on their laptops would back it up if the process was automated and made easier for them.

Volunteering helps build employee skills

Tue, 20 Oct 2009 12:57:20 GMT

Volunteering is a "win-win" for individuals, the business they work for and society as a whole, it has been claimed.

John Grange, an adviser at Business Link, said civic roles and volunteering are something that employees can enjoy and learn new skills from.

He was commenting after communities secretary John Denham urged businesses to encourage their staff to put themselves forward for such participation.

Mr Grange added that volunteering can be very "motivational" and viewed as a form of staff development or training.

This is because it puts people into an environment where they will have to develop different skills to those used in the course of their daily employment duties, he claimed.

"It takes you outside your normal comfort zone, into areas where you're going to draw upon strengths you've got and maybe haven't appreciated much in the developed world," Mr Grange said.

"When you develop as a person, you become more valuable to the company you work for as well."

According to Volunteering England, there has been a rise in the number of people interested in giving up their free time during the last six months.

Some 86 per cent of Volunteer Centres have seen an increase in enquiries during this time, a new report claims.

Number of mobile workers set to rise

Mon, 19 Oct 2009 13:00:19 GMT

Enterprise mobile workers will make up 73 per cent of the workforce by 2012, according to research from Forrester.

Alex Donnelly, portfolio manager at Damovo UK, said this prediction was likely to be accurate as "more and more people are expected to and want to work more flexibly".

The use of mobile working technology will "create better business efficiencies and more flexible working for users," he added.

"We communicate socially through, voice, SMS, email, and social network updates on our mobiles. People are recognising what these tools can [do] and want to use them more in the corporate environment. It will create better business efficiencies and more flexible working for users," Mr Donnelly said.

However, the Forrester report also found that with the number of mobile workers increasing, enterprises are currently supporting more than one mobile operating system, adding unnecessary complexity.

Mr Donnelly said the key to any mobile strategy is to support a defined common number of platforms and have appropriate device management applications in place.

Brett Caine, general manager of mobile working firm Citrix Online, recently claimed that widespread internet access and collaboration technologies are allowing businesses of all sizes to mobilise their workforce.

Faulty broadband not a national problem

Mon, 19 Oct 2009 12:58:19 GMT

Small businesses have been reassured that faulty broadband is not a countrywide problem.

After research from uSwitch.com indicated that consumers are spending £6 million a year on calling for technical support to resolve broadband faults, Edd Dawson, editor of broadband.co.uk, said the issues were generally localised.

He claimed: "There are big variations in the technology that is provided to people with broadband, and it depends on who your provider is and where you live."

Mr Dawson added that the quality of technical support which customers get when they call for help also depends upon the supplier.

"Some providers are always going to cram more users onto their equipment. It is always a case that the more people you put through your infrastructure, the less well that it is going to perform," he said.

He claimed that some suppliers offer excellent technical support, but noted that consumers usually get what they pay for.

According to uSwitch.com, only half of all broadband customers are satisfied with the technical support offered by their broadband company.

A third face charges of up to ten pence per minute when they call for help, on top of a nine pence call set-up fee, which costs up to £1.75 for the average phone call.

Websites becoming more important for retailers

Fri, 16 Oct 2009 15:44:16 GMT

Businesses increasingly require websites in order to compete with their rivals, it has been claimed.

According to Dan Oliver, editor of .netmagazine, the low overheads enjoyed by online operators make it hard for purely land-based operators to offer the same value for money.

This is why the majority now have websites, where they often offer discounts on what you would pay 'in store', he stated.

Mr Oliver claimed that "price will often be the dominant factor" for consumers, meaning businesses must do all they can to offer exceptional value for money.

He added: "There's no doubt that shopping online can save consumers a huge amount of money.

"Being able to compare products online means you can secure some great bargains, but - if you've never bought from a company before - you should always undertake a little research on the seller before you make a purchase."

Last week, Richard Dodd of the British Retail Consortium, claimed that the majority of small firms are more than aware of their 'responsibility' to offer high levels of customer service.

He claimed that the vast majority of customers are satisfied on most occasions, adding that where something does goes wrong, most retailers will "fall over themselves to put things right".

Website analytics 'can improve conversion rates'

Fri, 16 Oct 2009 15:43:16 GMT

Small companies can use analytics to improve the success of their internet marketing campaigns, it has been claimed.

According to a new study conducted by Site Intelligence, businesses that invest in measurement strategies experience greater success in building profitable customer relationships.

The report indicates that such businesses see online conversion rates rise from two to seven per cent.

In addition, three-quarters of firms with websites are able to enjoy improved year-on-year conversions using analytics.

Site Intelligence reports that 69 per cent currently have a process for separating online data for specific personnel, while 68 per cent benefit from the use of defined performance metrics.

The firm's commercial director David Pool said: "A key challenge for businesses is to ensure the right information reaches the right segment of business so they can put in strong action plans to improve sales and profitability."

Business Link adviser Ganesh Selvarajah recently told the BBC that firms must develop their websites if they wish to attract new custom online.

He advised: "Work out what it is that makes you different from your competitors and make sure that this 'unique selling point' is clear on your homepage."

IT security spend should not be reduced

Fri, 16 Oct 2009 15:34:16 GMT

Now is not the time for firms to slash their security spend, according to one business expert.

William Beer, director of the One Security practice at leading professional service firm PricewaterhouseCoopers LLP, said that although all budgets are under pressure due to the recession, firms cannot risk ignoring IT security issues.

He claimed businesses face "a host of new and emerging threats" ranging from complex malware to attacks from cyber-criminals and e-espionage, all of which can result in material loss and reputational damage.

Mr Beer added that the eagerness of many firms to move to digital business models increases the level of danger.

"Where core information assets, such as customer data and intellectual property, may be shared with business partners and outsourced suppliers, often in other countries... this adds another dimension to the risks involved," he said.

Earlier this month, Tom Ilube, chief executive officer at online information firm Garlik, warned that a degree of complacency could be setting in where IT security is concerned.

He said that while net fraudsters are using increasingly advanced techniques to access banking details, many consumers are failing to take the precautions they should.

RBS and Natwest to offer credit support service

Thu, 15 Oct 2009 14:51:15 GMT

The Royal Bank of Scotland and Natwest have announced new plans to aid small businesses in getting loans and the advice they need.

A telephone and email service staffed by experienced relationship bankers is to be launched, which aims to "exhaust every avenue in the search for a responsible lending solution that meets the businesses' needs".

Speaking about the scheme, and the problems facing UK firms in general, John Wright, national chairman for the Federation of Small Businesses, said his organisation had long been calling for an intermediary to support the sector.

He said extra help was needed for viable businesses that have been denied loans and overdrafts, especially with almost a third of small firms struggling to access affordable credit.

"We need someone to act as an honest broker; someone to look at the facts, get to the heart of the matter and get a decision made quickly to help small firms sustain their cashflow during these tough times," Mr Wright stated.

"If this move helps fill that gap, even partially or temporarily, then it has to be welcomed. That said, it cannot replace high-quality, impartial government advice."

Earlier this week, Phil McCabe, spokesperson for Forum of Private Business, claimed a simplified tax and legislative system is needed to encourage innovation in the UK.

Expert calls for greater access to credit

Thu, 15 Oct 2009 14:48:15 GMT

Additional credit is required to help struggling businesses through the recession, it has been claimed.

Speaking after research by UHY Hacker Young and Trowers & Hamlins revealed that the number of firms facing financial difficulties has increased, David Molian, lecturer in entrepreneurship at the Cranfield School of Management, said lending restrictions were a major contributor to this.

He said money is still not available to small businesses, with the banks being "very unforthcoming".

"I think those businesses which are now going under have been fighting to get in every last penny and protect every last penny and now there is no more cash. So that is probably what explains the rise in the number of businesses going bust," Mr Molian added.

He claimed that the government should do "everything it can" to get credit into the market to prevent further insolvencies.

According to a report by the Institute of Chartered Accountants in England and Wales, more than one in three firms report that access to capital is a greater challenge than a year ago.

Most of those questioned thought that major spending cuts – and possibly tax hikes – will be needed in the next parliament to bring government finances back to health.

BCC scheme to encourage SME innovation

Thu, 15 Oct 2009 14:29:15 GMT

Thousands of small and medium-sized enterprises (SMEs) are to be given the opportunity to learn from some of the UK's biggest and most successful companies, it has been announced.

Business Growth Clubs, developed by the British Chambers of Commerce (BCC), are to be established in a bid to encourage SME expansion.

Leading industry professionals from institutions such as BT, RBS and NatWest, Dell, Design Council and PTI Worldwide are to offer their support to the SME sector through a series of informal, hands-on workshops.

Among the topics to be discussed include banking, motivation, marketing and IT.

John Dunsmure, managing director of the BCC, said SMEs are operating in a "fiercely competitive" market and difficult economic conditions.

He added: "It's easy for them to become frustrated or bogged down in the day-to-day pressures. However, the current backdrop means it is even more important for businesses to stay focused, innovate and develop new skills to ensure they are fit for the future.

Mr Dunsmure said the fact that people will be able to learn from likeminded businessmen and women through the growth clubs will mean they can "stay ahead of the game" and move up to the next level.

Earlier this week, Phil McCabe, spokesperson for Forum of Private Business, claimed that a simplified tax and legislative system is needed to encourage innovation in the UK.

Mobile workers urged to switch off

Wed, 14 Oct 2009 13:57:14 GMT

Businesspeople who use mobile technology to work flexibly should remember to spend time away from work duties, it has been claimed.

Writing for Tech Republic, industry commentator Jeff Dray claimed that mobile working can be "a liberating experience", but it risks becoming part of everyday life if certain boundaries are not set and adhered to.

He said that all mobile data equipment comes with a vital component - the off switch.

Mr Dray explained that just because a mobile device may be provided and paid for by a company, it does not mean it should be left on at all times to allow 24/7 contact.

"When you finish work for the day, turn it off. When you go to a pub or restaurant, turn it off. When you go to bed, check that it is off. Turn it back on when it is time to start work again," he advised.

"Remember, your time is a marketable product. Don't devalue your skills by giving it away for free."

Earlier this year, John Dunn, editor of IT resource site Techworld, claimed that small firms should be investing in wireless technology to facilitate remote working.

He claimed that wireless is "a winner" because it is a cheap, mature technology that has been embraced by PCs around the world.

Female entrepreneurs line up for regional awards

Wed, 14 Oct 2009 13:56:14 GMT

A north-east businesswoman has been shortlisted for two accolades at the region's prestigious 2009 Woman Entrepreneur of the Year Awards.

Rebecca Howard, owner of health company Cynergy, has been nominated in the Best Small Business category of the annual Women Into The Network awards.

She is also a finalist for the Susan Dobson Award for Entrepreneurship, recognising her achievements in self-employment.

Other nominees include Emily Humphrys and Alison White of Cambridge Research Biochemicals, Cool Blue Brand Communications' Tanya Garland, Julie Richardson of KeyStage Recruitment and Zoe Walton of Website Promotions.

Chair of the judging panel, previous North-East Woman Entrepreneur of the Year winner Fiona Cruickshank, said the high quality of the nominees speaks for itself.

The SCM Pharma director added: "For new and smaller businesses, winning really can provide a springboard to growth, add real credibility to what they are doing, and provide fantastic marketing opportunities.

"As we enter the tenth year of the awards, we continue to be astounded by the amount of talent here in the north-east – and wish all the nominees the best of luck."

Earlier this year, Pat McDonald, president of the CBI Business Group, claimed women have many different skills which give them an advantage in business, particularly where sales are concerned.

Regular breaks crucial for employees

Wed, 14 Oct 2009 13:54:14 GMT

Company bosses can encourage good workplace habits by setting an example themselves, it has been suggested.

According to Jane Bird, director of operational policy and performance at the Advisory, Conciliation and Arbitration Service (Acas), they should be attempting to limit workplace stress by urging employees to take regular breaks.

She claimed that staff who skip lunch – or fail to take other breaks during the day – may be doing so because they feel under pressure to get work done.

With the Health and Safety Executive identifying excessive demands as one of the six main causes of workplace stress, Ms Bird said it was important to take preventative steps.

She added: "Managers can play a key role in reducing pressure and stress by actively encouraging their staff to take breaks and by setting an example and doing so themselves.

"Employees are more likely to be productive if they take the breaks they are entitled to, so there are benefits to the organisation too."

Research conducted by SPAR indicates that the traditional British lunch hour has shrunk to an all-time low, lasting an average of just 35 minutes and 39 seconds.

Phishing a constant threat for web users

Tue, 13 Oct 2009 15:39:13 GMT

Although most internet consumers are now aware of how phishing works, many are still falling victim to such scams due to their increasing sophistication, it has been claimed.

Following reports that more than a quarter of a million AOL, Gmail, Hotmail, and Yahoo email accounts could be at risk from cybercriminals due to passwords being posted online, Carole Theriault, senior security consultant at Sophos, warned that phishing remained a serious threat.

She said that many web users were potentially leaving themselves exposed by using the same password for all their online accounts.

Consequently, Ms Theriault noted that online criminals could use the passwords posted online to access many other applications.

She advised that changing passwords regularly and using a unique password for each account is the best way for internet users to protect themselves.

"The technology needs to be in place to stop these things, but you also need to be vigilant," said Ms Theriault.

"I know it is hard to remember a million passwords. It does feel impossible, but there are websites [that can help you]."

In related news, the National Fraud Authority has reported that 97 per cent of employees lack confidence that their employers are properly protecting sensitive information.

Virtualisation technology confusing some SMEs

Tue, 13 Oct 2009 15:37:13 GMT

Many small and medium-sized enterprises (SMEs) are mistaken in their understanding of virtualisation technology, it has been claimed.

According to IT support service company Managed Networks, their concept of what virtualisation is means they commonly mistake hosted IT for it.

The IT firm said that, despite virtualisation being a current tech sector buzzword, the actual idea is causing mass confusion, with most definitions describing hosted solutions.

Nigel Davey, business development manager at Managed Networks, said many SMEs perceive virtualisation as their server infrastructure being outsourced.

"Because it is somewhere else, they perceive it as a virtual server or virtual server infrastructure even though, in reality, it is actually hosted," explained Mr Davey.

He added that the situation is further confused when "suppliers that provide hosting services actually use virtualisation technology to provide those hosting services".

Mr Davey added: "My personal opinion is that the confusion is only at an SME level because it depends on what they are looking to achieve and then they are not quite sure where to go."

According to Managed Networks, virtualisation sees a physical server do more work and utilise more of the machine's processing capability, therefore getting an increased capacity out of less hardware.

Under a hosted services model, SMEs lease an entire server to run applications on.

Small company bosses urged to chase payment

Mon, 12 Oct 2009 10:49:12 GMT

Small business owners seeking to avoid running in to difficulties as the recession ensues should seek payment from customers and clients as soon as possible, it has been claimed.

Phil McCabe, spokesperson for Forum of Private Business (FPB), highlighted the fact that more instances of late payment tend to arise during economic downturns.

In addition, more companies seek to alter contractual terms or conditions, causing businesses to wait for invoices to be settled, he stated.

Mr McCabe commented: "The main issue that is causing our members concern, [is] if you can't borrow money to the same degree, can't get access to credit to the same degree, it's all the more important that you get paid on time."

He added that the most important thing in any business is maintaining a healthy cash flow, and the easiest way to achieve this is to ensure timely payment.

FPB chief executive Phil Orford recently claimed that small firms' cash flow is being "decimated" by credit restrictions and declining trade.

He added: "Our research suggests that poor payment, which has always been a problem, is now threatening the very survival of many businesses."

Extra support needed to encourage new firms

Mon, 12 Oct 2009 10:48:12 GMT

The government needs to do more to encourage people with marketable ideas to start a business, it has been claimed.

According to Phil McCabe, spokesperson for Forum of Private Business, a simplified tax and legislative system is needed to encourage innovation in the UK.

He was commenting after the National Federation of Enterprise Agencies reported on a shortage of start-up support services for people with professional, managerial and executive backgrounds.

Mr McCabe said most people start a business because they have a particular skill or expertise that they feel that people would want.

He added: "I think entrepreneurs or prospective entrepreneurs should no longer [just] think 'what can I do?' or 'can I provide solely that?' but more importantly 'how can I sell my skills?'

"That is the crucial difference. It is that kind of attitude that will help your business to grow."

According to a survey conducted by the Association of Chartered Certified Accountants last month, almost two thirds of Brits would like to be their own boss.

The study indicated that the entrepreneurial spirit is especially strong among 25 to 34-year olds, with three quarters aspiring to one day run their own company.

Small firms reduce IT costs with SaaS

Mon, 12 Oct 2009 10:47:12 GMT

Growing businesses can reduce IT maintenance costs by investing in web-based software, it has been claimed.

Speaking to Smallbiztrends.com, IAC-EZ's Jessica Routier said Software-as-a-Service (SaaS) solutions are a great way for small enterprises to save money on technology without negatively impacting upon quality.

She explained that SaaS removes the need for firms to purchase their own boxed software and the frequent upgrades that go along with it.

"Many web-based applications also have a great support team that is available to the small business at no extra charge," Ms Routier added.

She suggested that this feature may appeal to entrepreneurs in particular, as they often keep non-traditional hours in a bid to maximise profitability.

Earlier this year, Soeren von Varchmin, vice-president for SaaS and service providers international at Parallels, claimed that the technology holds the potential to "massively transform" the way people and businesses use and purchase IT.

Success is best achieved when the industry implements technology and processes that ensure reliability, breadth and quality of services, he claimed.

Mr von Varchmin also noted that SaaS vendors need to remove manual billing and provisioning processes and instead focus on automation.

IT firms have economic recovery role

Mon, 12 Oct 2009 10:45:12 GMT

Smaller businesses in the IT sector, and those they supply, will play an important part in helping the industry pull through the recession, it has been claimed.

Stephen Uden, head of skills and economic affairs at Microsoft, said small, local customers and IT companies serve a hugely important role as catalysts for economic growth.

He was commenting after IT research firm International Data Corporation (IDC) claimed the industry will create 5.8 million new jobs and more than 75,000 new businesses worldwide over the next four years.

Mr Uden said two-thirds of the companies in the ecosystem are small, local firms.

He added: "When we look to job creation, formation of new companies, spending on software and IT, taxes, and revenues to local partners, they all point to the importance of local small and medium-sized companies in helping us to grow in a sustainable fashion."

The UK currently ranks sixth in the world's top environments for a competitive information technology sector, according to the Economist Intelligence Unit.

With a score of 70.2 out of 100, it has fallen three places from 2008's third position.

In addition, the UK ranks 12th in the study's measure of IT research and development achievements.

Companies aware of customer service expectations

Fri, 09 Oct 2009 13:05:09 GMT

Customer service will be key to economic success for small retailers this Christmas, according to the results of a new study.

The 2009 National Customer Satisfaction Survey, run by Retail Eyes, indicated that seven out of ten consumers are willing to pay more for goods as long as they are provided with a high standard of service.

In addition, 56 per cent of the 6,523 UK participants questioned said they would depart from business premises if they received poor customer service.

However, Richard Dodd of the British Retail Consortium said some of the survey findings paint "a much more negative picture" than he would recognise.

He claimed: "The vast majority of customers are satisfied on most occasions. On the occasion that something goes wrong, most retailers will fall over themselves to put things right.

"Retailers don't need to be told that customer service is important as they know this and demonstrate it on a daily basis."

Mr Dodd said the feedback received by businesses themselves indicated that in the majority of cases, customers are satisfied with their experience.

According to the Chartered Institute of Purchasing and Supply/ Markit Purchasing Managers Index, the UK service sector registered its strongest rise in activity in 24 months during September 2009.

Wage cost reductions alone cannot solve business problems

Fri, 09 Oct 2009 13:03:09 GMT

Small firms will not be able to solve all their problems by implementing pay freezes, it has been claimed.

Commenting after Income Data Services reported that around a third of businesses have placed salaries on hold, Business Link advisor John Grange said alternative solutions were needed.

He claimed that pay freezes could play a role in reducing expenditure, but they "have to be seen as part of a jigsaw or part of a bigger strategy" within any business.

Mr Grange added: "To get to heart of the problem, many businesses have seen a fall in demand, so their costs exceed their income and they are having to respond to that. And one of the means to help them buy time and survive is to look at their wage costs."

Firms should be looking to promote themselves in new markets in a bid to drive revenue, he stated, something which pay freezes may help achieve by "buying time".

Where they are needed, cuts should be implemented across the board, Mr Grange noted – avoiding the need for job losses.

"If you make large numbers of people redundant, you're going to lose the skills you need within the business and it won't be able to function correctly," he said.

Income Data Service reports that the median pay settlement level for 2009 is 2.3 per cent – the figure being driven up by higher level awards.

BCC calls for government action on red tape

Fri, 09 Oct 2009 13:00:09 GMT

The British Chambers of Commerce (BCC) has added its voice to calls for a limit to business regulation, which is said to be damaging the prospects of small firms across the UK.

David Frost, director-general of the organisation, said the burden of red tape is affecting British firms, meaning action is needed now to safeguard productivity as the recession shows signs of recovery.

He claimed that regulations have cost businesses £76 billion since 1998 and it is the responsibility of politicians to set them free.

Mr Frost said: "Given the current economic climate and the need to let business create jobs, there should be a moratorium on new employment laws."

His comments came after shadow chancellor George Osborne told the Conservative Party Conference in Manchester that no new business regulations would be introduced without a compensatory cut elsewhere should the Tories come to power at the next general election.

Meanwhile, Richard Lambert, director-general of the Confederation of British Industry, also welcomed Mr Osborne's proposal.

He said the Conservatives had "set out a rigorous-sounding process against which regulations old and new will be measured".

Last week, John Wright, national chairman of the Federation of Small Businesses, warned ministers not to underestimate the pressures placed on UK firms by excessive bureaucracy.

Equifax says recession pressures encouraging ID theft

Thu, 08 Oct 2009 13:09:08 GMT

Small business owners have been warned that incidences of identity theft are on the rise.

Neil Munroe, a spokesperson for Equifax, said the ongoing recession had led to the fraudulent activity intensifying, following the trend established in previous periods of downturn.

He said there is a temptation for people to get involved in ID theft when they become desperate for finances, meaning consumers and businesses need to be on their guard.

Mr Munroe said people do need to be aware of the risks and take major precautions to ensure they do not become a victim.

He added: "It is important that you look after and [are] aware of all the different places where your information can be gotten from and make sure that is secure."

Continuing, Mr Munroe explained that the internet is one of the areas fraudsters are targeting.

He said: "The fraudster has gone into the cyber world and realised that they can get information [from] individuals.

"It is very much a case of being aware of that when giving your information out and certainly never responding to emails asking about information on bank accounts. Anybody who is legitimate never asks for that."

Earlier this week, Tom Ilube, chief executive officer at online information firm Garlik, claimed there was a risk of the general public suffering from complacency where IT security is concerned.

Older professionals unequipped for IT troubleshooting

Thu, 08 Oct 2009 13:06:08 GMT

While most people aged 50 and over have good IT skills, many find it difficult to solve technical issues without external support, it has been claimed.

Research conducted by leading consumer group Which? indicates that IT partnerships – such as managed service agreements - may be able to help senior business owners control their computer systems.

The study suggested that issues such as viruses, computers crashing and online security are common difficulties for over-50s, who lack the level of expertise required to troubleshoot effectively.

In addition, Which? reported that many senior professionals need help understanding technical IT jargon.

A spokesperson for the group commented: "When it's going right they feel really confident, but if something is going wrong they don't know where to turn."

It is difficult for older computer users to discover the basic knowledge that younger generations, who grew up using IT, take for granted, she added.

"You can go on computer courses and learn to word process, but you're not told about all the error messages that can pop up that can throw a spanner into the works," the spokesperson said.

Windsor Holden, principal analyst at Juniper Research, recently claimed that mobile cloud computing can be used by small businesses keen to outsource their IT.

SME manufacturing firms in recovery

Thu, 08 Oct 2009 13:04:08 GMT

UK manufacturing is finally beginning to kick-start, with small and medium-sized enterprises (SMEs) leading the way, new research has indicated.

According to a study conducted by the Forum of Private Business, 20 per cent of SMEs in the manufacturing sector are currently seeing an increase in orders or sales.

Some 47 per cent expect an increase over the coming year and five per cent are already taking on new staff in anticipation of a market upturn.

Commenting on the study, Adam Buckley, head of programmes for The Manufacturing Institute, said SMEs had used a lot of different working opportunities to get through the recession, such as idealised hours.

"Manufacturers have seen a lot of recessions and so they've created quite lean companies," he stated.

However, they have recognised that if you make staff redundant you lose vital skills and abilities forever, Mr Buckley noted.

He added that the level of sterling has helped exporters, but advised firms to "source locally" because this will help the sector be in the best position possible to move forward.

Last week, Rocco Magno, director of FX International Payments at American Express, noted that while trading abroad can be a big challenge for SMEs, there are many potential rewards available to those who enter international markets.

Small firms may have tax deferment option

Thu, 08 Oct 2009 13:03:08 GMT

Small firms that are struggling to meet outstanding tax bills due to unforeseen circumstances may be able to take advantage of a government scheme which allows them to defer payment.

The 'time to pay' arrangements, made with the agreement of HM Revenue & Customs (HMRC), are being used by IT firms in particular, it is reported.

HMRC says the arrangements for the IT sector add up to some £291 million in owed tax, with the combined total for all sectors £3.71 billion.

Bill Dodwell, head of the tax policy group for Deloitte, said many companies and independent contractors were taking advantage of the initiative because they are experiencing delays in getting paid themselves.

He added: "It's the small, self-employed, limited companies that use [the time to pay scheme], because tax bills are usually paid in fairly lumpy amounts, and that's what hit people.

"I think it's something which applies to a number of businesses generally where they are dependent on major customers."

Mr Dodwell said it was "good news" that HMRC is actively helping small companies negotiate the downturn.

According to UK Trade and Investment, the IT sector contributed £66.4 billion to the economy in 2008.

Performance management a struggle for business leaders

Wed, 07 Oct 2009 11:47:07 GMT

Small business owners may need to improve their performance management skills, according to one expert.

Andy Clare, a partner at Shine Feedback, was commenting after his firm conducted a study to assess managers' common strengths and weaknesses.

He commented that four or five years ago, when the survey was previously carried out, team leaders were found to be objective and customer service focused, but fell where their contribution to staff development was concerned.

Mr Clare said that while perceptions had not changed dramatically, employees are now happier with the coaching they are receiving, but less pleased with communication over individual attainment and success.

He added: "[Leaders] are not finding the time to do performance management and sit down and talk with the individual about their performance; what they are doing well and what they are not doing so well.

"Importantly, they are not particularly good at having conversations with people when their performance isn't good enough."

Last week, business coach Leon Noone claimed that effective management is key to productivity.

He explained that as small business owners are likely to be in daily contact with their employees, they are highly visible and must therefore have sound management skills.

Security expert warns of web complacency

Wed, 07 Oct 2009 11:42:07 GMT

Online crime is increasing in the UK because internet users have become slack about protecting themselves online, it has been claimed.

Tom Ilube, chief executive officer at online information firm Garlik, claimed net fraudsters are "having it pretty easy at the moment," because as they are using increasingly advanced techniques, "consumers are becoming more complacent" about protecting their personal data.

He suggested that when consumers are "bombarded with messages", they tend to wash over them after a while – and this is the case where the importance of IT security is concerned.

Mr Ilube commented: "In 2006 and 2007, when identity theft was really coming on to the radar screen, you could hardly open a newspaper without a new issue about identity fraud... consumers absorbed a lot of that.

"What they then seemed to do was go out and do the basics. Everyone got themselves a shredder and started shredding like crazy and then people thought 'I'm done now. That whole identity theft thing – I've taken care of it'."

However, he said fraudsters have been getting increasingly intelligent in the meantime, with even the most unsophisticated phishing emails "getting smarter".

As a result, extra vigilance is needed to make sure consumers and businesses do not fall prey to online crime, Mr Ilube said.

According to the quarterly Anti-Phishing Working Group, the number of banking trojan/password stealing crimeware infections detected increased more than 186 per cent between the fourth quarter of 2008 and the second quarter of 2009.

FSB welcomes proposed NI tax break for new firms

Wed, 07 Oct 2009 11:36:07 GMT

The Conservative Party has pledged to introduce a new National Insurance (NI) tax holiday for start-ups, should it come to power at the next general election.

Speaking at the party conference in Manchester, Shadow Chancellor George Osborne said the plan could not only help innovation but also create up to 60,000 jobs.

Under the plan, employers would be able to claim tax breaks on the first ten people they recruit, encouraging them to expand in numbers and scale.

The Forum of Private Business (FPB), which is campaigning against a 0.5 per cent NI increase scheduled to take place in 2011, has offered a cautious welcome to the proposal.

Matt Goodman, the FPB's policy representative, said that abolishing NI for new start-ups was a "key announcement".

He said the 2011 rise would come into effect "just as small businesses are likely to be in a position to recruit staff in earnest".

"We will examine the savings that will need to be made to pay for this initiative, but welcome it in principle as a genuine stimulus to employment, small business growth and sustained economic recovery," Mr Goodman added.

Last week, John Wright, chairman of the Federation of Small Businesses, urged small businesses to offer graduate internships in a bid to grow their companies.

Small firms urged to use online video marketing

Tue, 06 Oct 2009 14:16:06 GMT

Online video marketing presents some "fantastic opportunities" for businesses, one industry expert has suggested.

According to Shaun Bailey, the chair of the Direct Marketing Association's (DMA's) Agencies Council, firms should be looking to use the medium in their online promotional strategies.

He said that technological advances and changing consumer behaviours are providing new opportunities for advertisers, despite the recession.

With online video now accessible via a TV as opposed to being limited to computers with smaller screens and poorer audio, he suggested there were many options available to marketers.

Mr Bailey commented: "As digital TV and online converge we are able to use the assets of each channel to produce adverts that use full audio visual stimulus to engage audiences, with the added ability to target, personalise and, importantly, track audience behaviour with online metrics."

He commented that the challenge for marketers is how to use this relatively new channel to deliver accountable results.

Last week, the Internet Advertising Bureau and PricewaterhouseCoopers revealed that the amount spent on online marketing hit £1.752 billion in the first half of 2009.

Consequently, it overtook television to become the advertising industry's biggest sector for the first time.

Hosted IT can cut small company costs

Tue, 06 Oct 2009 14:16:06 GMT

Small and medium-sized enterprises can now access flexible levels of IT support by investing in managed technology services, it has been suggested.

Writing for TMC Net, advertising specialist and industry commentator Raju Shanbhag claimed an increasing number of firms have been turning to providers of such technology as the economic downturn has ensued.

He claimed that the desire to reduce expenditure without affecting service levels has driven many companies to assess their technology options.

Mr Shanbhag explained that managed services can be purchased to host applications, provide data storage and support websites among other purposes - cutting the cost of maintaining and investing in small companies' own IT infrastructures.

As the cost of upgrading IT "gains prominence in a company's scheme of things", managed services can be "a perfect solution" for those required to downsize, he suggested.

Mr Shanbhag commented: "[Hosting] provides a knowledgeable IT service provider who can take care of the IT functioning of the company at a fraction of cost of having an in-house team.

"Also, the level of support that is available can change with the needs of the company."

Last week, Chris Bone, enterprise products and solutions specialist at Fujitsu, said IT is a "fundamental element of business success" and should be one of the main areas of importance for firms.

Flexible working now more available to small firms

Tue, 06 Oct 2009 14:14:06 GMT

Putting flexible working schemes in place is becoming cheaper and easier for small and medium enterprises, it has been claimed.

Alistair McKinnon, senior product manager at ntl:Telewest Business, the UK's second largest fixed line communications company, said "small organisations are embracing more flexible working" because the technology needed to do it is now "much cheaper".

He was commenting after research conducted by cereal producer Kellogg's indicated that many workers would prefer flexible hours over a pay rise or a bonus.

Mr McKinnon explained that because smaller organisations can now afford to invest in broadband, Virtual Private Networks, internet protocol security and softphones, they can "very easily do things like home working".

He added: "Historically [flexible working] required more knowledge of technology and was more expensive to do, therefore a bit harder to work out a business case for doing it.

"These days, with a network-based service, even small companies can deploy multimedia. They may not have a great deal of IT specialism, because that's not their core job, but it means that they can very easily do things like home working."

According to Fresh Business Thinking, virtualisation technology now allows home-based workers and office staff to operate as though they are all in the same room.

Small firms encouraged to adopt mobile VoIP

Mon, 05 Oct 2009 15:16:05 GMT

Small companies can give their personnel more flexibility, while staying aware of their activities by investing in mobile Voice-over Internet Protocol (VoIP), it has been claimed.

After YouGov found that 18 per cent of UK adults with a mobile phone would be interested in a VoIP service offered by their operator, Dimension Data's customer interactive solutions director Howard Spink explained the benefits of web-based calls for business users.

He said having a mobile workforce within your business can help employers easily tap into the knowledge base of their skilled employees when they are working remotely.

Mr Spink stated: "Not implementing IP now is probably one short cut to making yourself unattractive to customers."

He said a failure to introduce VoIP for customer service operations will mean that the company is like to become uncompetitive on costs and have less flexibility than its rivals.

According to YouGov, 11 per cent of people who have downloaded a VoIP application onto their mobile phone use it daily.

Of these users, 39 per cent take advantage of the low cost of VoIP to make international calls, potentially significant for small and medium-sized businesses with an interest in foreign markets.

Vigilance urged in war against cybercrime

Mon, 05 Oct 2009 15:10:05 GMT

Cybercriminals are likely to use more and more sophisticated combinations of trojans and money mules over the coming years, an IT security expert has warned.

Urging small businesses and individual IT users to protect their computer systems, Finjan chief technology officer Yuval Ben-Itzhak said there could be no complacency over web security.

He said there is ongoing competition between the cybercriminals and the banks, with both attempting to improve their systems – the former with theft in mind and the latter aiming to protect customer accounts.

Fraudsters are continually attempting to develop versions of their systems that can bypass the security measures in place on particular IT systems, Mr Ben-Itzhak claimed.

He added: "There is no question that there are going to be improvements on what we've seen [from cybercriminals] over the last few years. I don't see any reason for them to stop."

Graham Cluley, senior technology consultant for Sophos, recently called on small business owners and other internet users to regularly update their computer software to prevent against hacker attacks.

He claimed there are over 22,500,000 examples of malware in existence online with 40,000 new versions appearing every day.

"You need an up-to-date anti-virus, and I don't mean updating it every week or every day – your anti-virus should be silently in the background, updating itself every hour," Mr Cluley stated.

FSB calls for limits to business regulation

Mon, 05 Oct 2009 13:37:05 GMT

The government must halt all new business regulation if it wishes to encourage innovation in the small business sector, it has been claimed.

According to John Wright, national chairman of the Federation of Small Businesses (FSB), ministers must not underestimate the burden that unnecessary regulation puts on the sector.

He claimed that around half of all firms planning to close or down-size had been influenced in that decision by the heavy impact of regulation.

Mr Wright added: "We know that small firms want to employ more staff and the government should be making it easier for them to do so, especially as we pull ourselves out of recession and into recovery.

"The FSB is urging the government to give the UK's regulatory environment a strategic overhaul, to provide it with what will amount to a second economic stimulus, to boost growth and employment."

According to research conducted by the Forum of Private Business, red tape costs small companies in the south-east of England £1,403 million every year – the highest amount of any region in the UK.

Of this amount, an estimated £309 million is spent on health and safety legislation, while dealing with employment law paperwork costs £361 million.

Graduate internships can be good for business

Mon, 05 Oct 2009 13:36:05 GMT

Small businesses can offer internship to graduates in a bid to attract talented young professionals to their workforce, it has been claimed.

John Wright, chairman of the Federation of Small Businesses (FSB), claimed that such companies are the UK's "job creators" and must be given support to take on university and college leavers.

Speaking after the government announced plans to fund 10,000 internships in small and micro businesses, Mr Wright said work placements are beneficial for everyone concerned.

He said that while they help graduates gain the experience they need to advance in the workplace, small firms benefit from the skills possessed by this new workforce, from which they find it "traditionally harder" to recruit.

Mr Wright added: "Research from previous schemes shows that one in four graduates are also offered full-time employment in the business at the end of their placement.

"The FSB is committed to promoting this scheme among its membership, and to encouraging all small businesses to link up with university careers services to offer vacancies and create placements."

Tom Richmond, skills advisor at the Chartered Institute of Personnel and Development, recently urged firms to offer work experience in a bid to gain access to new skills.

Firms urged to invest in IT security solutions

Fri, 02 Oct 2009 10:46:02 GMT

Smaller companies using free IT security solutions will not have access to the expertise needed to fix any damage caused by viruses or hackers, it has been claimed.

Luis Corrons, technical director at Panda Security, claimed that such software seemed to be keeping infections at reasonable levels in comparison to other European countries, although he warned that it is not equipped to handle larger-scale IT disasters.

He commented that if small firms fall victim to an attack, free solutions will not offer the technical support most companies will need to recover.

Mr Corrons stated: "These days businesses need to manage their computers and with a free solution you don't have a central console and therefore cannot do that.

"Only time will tell, but, traditionally, free software is for the home and not for the business.

Panda reported this week that British small and medium-sized businesses are the lowest spenders on IT security worldwide, with 98 per cent of companies investing less than £1,000 per annum on such technology.

Some 22 per cent of companies either do not have, or are not sure if they have any security provisions in place.

FPB warns of small business rate rises

Fri, 02 Oct 2009 10:44:02 GMT

The government must provide an appropriate and fair system of transitional rate relief for small businesses, it has been claimed.

Matt Goodman, policy representative at the Forum of Private Business (FPB), warned that many firms will see an increase in their rateable value from 2010.

He claimed the revaluation of rates scheduled for next year will affect most small businesses' bills, despite not being introduced as a revenue-generating exercise.

Mr Goodman commented: "Our survey shows that business rates are ranked as more of a concern than utilities and staff costs, and most of the businesses surveyed fear the worst – that their rates will go up.

"Small businesses are already under a great deal of pressure to pay their business rate bills and most do not see the corresponding value in local authority services."

Some 79 per cent of FPB members questioned in a recent survey claimed they are expecting their rates to rise in April 2010, when they are altered to ensure rateable values reflect changes in the property market over the past five years.

Last week, Amplify Research reported that confidence is down among small and medium-sized businesses in the UK, as the pressures of the recession take their toll.

Author offers business tips for women

Fri, 02 Oct 2009 10:34:02 GMT

Women should follow a number of simple steps to get ahead in business, it has been suggested.

The Econsultant blog reports how Molly D Shepard wrote a book entitled Breaking into the Boy's Club, in which she offers practical guidance to ambitious female professionals.

She urged women to communicate clearly to get their ideas heard, suggesting that in male-dominated workplaces it is easy to be drowned out by other competitive colleagues.

In addition, she advised networking strategically, navigating company politics and self-promoting in order to stand out from the crowd.

Ms Shepard suggested that seeking mentoring from experienced business professionals can be a positive step to take, while setting goals and keeping track of successes can also help career development strategies.

Earlier this year, research conducted by Vodafone indicated that women may be responding to the recession more effectively than their male counterparts.

The study found that six per cent of women claimed to have learned many new skills during the downturn compared with only 2.5 per cent of men.

Commenting on the survey, Tony Manwaring, chief executive of thinktank Tomorrow's Company, said women were bringing "a fresh perspective" to business and were increasingly adaptable.

Diversification can be good for small companies

Fri, 02 Oct 2009 10:28:02 GMT

Even in a period of recession, small businesses can diversify their operations in order to minimise risks, it has been claimed.

George Derbyshire, chief executive at the National Federation of Enterprise Agencies, noted that firms need not necessarily enter 'trench mode' during downturns, as they can take proactive steps to grow their business.

He explained that a number of major UK firms were started up during recessions, naming Green and Blacks, and John Lewis as examples.

Mr Derbyshire claimed that if company owners can make their business work while the economy is contracting, it will be "flying when the good times return".

"So I wouldn't put anyone off diversification today, but don't neglect your core business, and as ever, do your homework," he stated.

According to a survey published by the Department for Business, Innovation and Skills last week, 40 per cent of small company owners have developed "creative solutions" to strengthen their business during the downturn.

Some 77 per cent have made changes, which they believe has made their business stronger as a result.

Measures including increasing staff training, altering working hours, investigating new product areas and offering employee incentives are among those to have been taken by some firms.

Credit restrictions threatening business growth

Thu, 01 Oct 2009 12:43:01 GMT

Small businesses in the UK can still grow, but they continue to need greater support from the banks, it has been claimed.

A new survey carried out by the Forum of Private Business (FPB) indicates that 57 per cent of business owners surveyed in the north-west expect to see an increase in sales and orders over the next 12 months, while 31 per cent plan to take on new staff.

However, despite the positive economic reports, and Chancellor Alistair Darling's insistence that the UK is leaving recession, 67 per cent say lending conditions have further deteriorated.

The remaining 33 per cent say access to credit has remained the same over the quarter, suggesting that more can be done to support the activities of small firms in the region.

FPB chief executive Phil Orford said many business owners are still reporting "crippling problems in accessing finance" and there is a fair amount of animosity towards the banks over the issue.

He added: "The FPB has consistently urged banks to ease restrictions on lending to small businesses and assess each application on a case-by-case basis, rather than classing entire categories or sectors as being too risky to lend to."

Lord Mandelson recently claimed that the government has succeeded in providing support to the small business sector.

Role models important for young entrepreneurs

Thu, 01 Oct 2009 12:40:01 GMT

A new generation of entrepreneurs from ethnic minority backgrounds have been showcased in the the Power List, it has been reported.

Outsourcery claims that the publication, which is sponsored by JP Morgan and Thomson Reuters, should help to inspire young people from a variety of different professional backgrounds to attain their own success.

Piers Linney, joint chief executive officer at Outsourcery, explained that having esteemed people to look up to is important for anyone entering the world of business.

As a list member himself, he claimed that visible role models with African and Caribbean heritage can provide encouragement if their successes are reported in the public eye.

Mr Linney said that it would be a good thing as "we need more diversity around the UK's boardroom tables".

Ultimately, he stated that it is something innate that often leads to success in the business world.

"In my experience, most entrepreneurs are driven by a will to succeed and not by the recognition eventual success may bring," Mr Linney added.

Trevor Williams, chief economist for Lloyds TSB corporate, Daniel Taylor, founder and managing director of Metro Design Consultants, and Karen Blackett, chief operations director of Media.com, are among the professionals named on the Power List.

Expert warns of file sharing response risks

Thu, 01 Oct 2009 12:39:01 GMT

Plans to block illegal file sharers may be unworkable at present due to the risk on penalising other heavy web users such as businesses, it has been suggested.

Michael Philips, product director for BroadbandChoice.co.uk, warned that due to the vast number of internet connections, it is almost impossible for internet service providers (ISPs) to identify all the offenders.

He explained that with individual ISPs managing perhaps two million broadband lines, it is a major task for them to "pick out the traffic" and what individuals are looking at.

Mr Phillips added: "There'll be a lot of assumption and a lot of block modelling and then, inevitably, what will happen is that some people who are heavy users will be assumed to be illegal users.

"You'll find that people will get blocked or have their internet suspended by their ISP because it has made basic assumptions around usage and time of usage."

He suggested that identifying whether traffic is legal or illegal will be very hard, and the process of achieving this will be "strewn with errors", something which will "get people's backs up".

BT claimed recently that any response to internet piracy must be 'just and fair' to consumers.

Home working offers flexibility

Wed, 30 Sep 2009 14:39:30 GMT

Home working can be challenging, but it is certainly rewarding, one business professional has claimed.

Rob Van Norman told the Montreal Gazette that this working pattern does not involve "being in your pyjamas until noon", it is more of an opportunity to spend time working rather than travelling.

The co-owner of a Nurse Next Door franchise, he provides medical care and carries out emergency calls during both the day and night.

Mr Van Norman explained that having all work equipment on hand in the home makes it easy to conduct customer calls, eliminating the need to visit the office first.

He said: "If you work late into the day and you need to do something at home, there is that flexibility.

"It becomes a lifestyle rather than two compartmental parts of your life."

Deborah Maroney, chief executive of the DeMar Group, recently claimed that the recession has provided the perfect opportunity for entrepreneurs to start home-based businesses.

She claimed that widespread web access is opening the world of business up to new entrants.

"Large companies recognise the power of the internet and now ordinary people can get their piece of this growing pie," she added.

Q2 contraction less severe than first feared

Wed, 30 Sep 2009 14:37:30 GMT

Latest figures have indicated that the UK economy contracted by less than previously predicted in the second quarter of 2009.

The Office for National Statistics has revised gross domestic product to a drop of 0.6 per cent between April and June, rather than 0.7 per cent.

Data indicates that the year-on-year decline remains at 5.5 per cent.

With the Chancellor of the Exchequer Alistair Darling claiming that the UK will return to growth by the end of the year, the outlook may now be brighter for small and medium-sized businesses.

He stated: "Many independent forecasters now believe the UK is coming out of recession. I think it is too early to say so with total confidence.

"But I stick with my Budget prediction that, as long as we continue to support the economy, recovery will be underway in the UK by the turn of the year."

Some commentators have expressed even greater confidence over the health of the UK economy, with the Metro reporting this morning that the UK recession is to end today.

It claims the economy has expanded during Q3, meaning the technical recession has come to an end.

Business plans key to company growth

Tue, 29 Sep 2009 14:14:29 GMT

All companies should ensure they form an educated business plan, it has been suggested.

Business Daily writer Kimanzi Mwalya says this enables the small business owner and their team to focus on aspects such as growth, marketing, sales and product development.

She commented that where firms follow a plan properly, it enables the various business aspects to work together in a cohesive, coordinated way.

This in itself will improve the overall prospects of the business, Ms Mwalya stated.

She added that if a plan was developed before embarking on the business, then it should be read regularly once operations are underway.

"Doing so will enable the business owner to update and revise his or her goals or schedules as necessary. It also serves in reacquainting the business owner with the goals set at the beginning of the business journey, which may sometimes be lost along the way," she noted.

Concluding, Ms Mwalya claimed that the processes and procedures developed during the first few years of business help the owner think through the key elements of its critical path.

Todd Rammler, president of outsourcer Michigan CFO Associates, recently claimed that business owners should seek as much advice and support as possible as they bid to grow their companies.

Effective management key to productivity

Tue, 29 Sep 2009 14:12:29 GMT

Sound leadership is an essential ingredient of a successful business, it has been claimed.

Business coach Leon Noone claimed that managers often forget or ignore staff expectations as they set about achieving company goals, something that can alienate the employee base and cause productivity to fall away.

He explained that as small business owners are likely to be in daily contact with their staff, they are highly visible and must therefore manage them effectively.

Mr Noone urged owners to be consistent, by sticking to the messages they give staff and acting predictably in the event of unforeseen circumstances.

"You can be soft, hard, erratic, mean, generous or considerate, but whatever you are, be that way most of the time," he suggested.

"Changing from despot to benefactor isn't a problem if you're always like that. It's a huge problem if you change from one to the other unexpectedly. Staff expect predictable behaviour."

In addition, Mr Noone urged owners to be open and honest, admitting errors when they are made, informing employees of changes and "keeping them in the loop".

He concluded: "Without your staff, your business wouldn't exist. They may be far from perfect and cause you some headaches. But they keep your business alive. Look for opportunities to tell them how much you value their contribution. And be sincere."

Last week, Outsourced Events claimed that companies should always arrange a Christmas party for their employees in order to keep morale levels high.

Study alludes to international trade challenges

Tue, 29 Sep 2009 14:06:29 GMT

The number one concern for internationally trading small companies is currency fluctuations, a new study has indicated.

According to American Express FX International Payments, 36 per cent of business owners are most worried about the strength of sterling compared to the dollar, euro and other major currencies.

Despite this, 56 per cent of small company business leaders say they do not manage their financial risk at all, while just 44 per cent are currently protecting their margins against fluctuating exchange rates.

Other major concerns for firms importing and exporting include red tape and legislation, payment problems, pricing and international trade paperwork.

Time constraints, differences in business culture and the language barrier also cause difficulties, it has been suggested.

Rocco Magno, director of FX International Payments at American Express, commented: "UK business abroad is a big opportunity, however trading internationally can often be a complex process.

"It is imperative that small enterprises seek the right guidance in order to help manage their financial risk as much as possible."

Mr Magno said this is not only to protect themselves against negative currency fluctuations but more importantly to enable them to have increased foresight and control.

Last week, the American Express Open Small Business Monitor found that 55 per cent of entrepreneurs have an optimistic outlook on their prospects.

Firms improving business understanding due to recession

Mon, 28 Sep 2009 15:13:28 GMT

Many businesses have used the recession to re-evaluate their business operations and identify areas for improvement, according to a recent survey.

A study conducted by the Forum of Private Business indicates that 37 per cent of firms have paid more attention to their own internal finances in the last year.

In addition, 47 per cent said the time to expand their business would be six months from now, rather than immediately.

Some 52 per cent of businesses said "targeting new customers in the UK" was their main strategy for growth, while 29 per cent claimed they would develop in the short term by amending their business and marketing plans.

Commenting on the findings, Business Link adviser James Stancombe said the recession had given firms the opportunity to "start by developing a more efficient understanding of their own operations".

He added: "There has been a lot of help provided by Business Link advisers to businesses in that area. Companies which have previously existed on credit - it's forecast that they'll become a lot more aware of their finances."

According to a survey conducted by the Department for Business, Innovation and Skills, 40 per cent of firms have developed "creative solutions" to strengthen their business during the downturn.

Search advertising growing in popularity

Mon, 28 Sep 2009 15:11:28 GMT

The growing popularity of search advertising has helped prop up the digital marketing industry as the recession has ensued, according to eMarketer.

Karin von Abrams, senior analyst at the digital marketing research and analysis company, said it had been the "bedrock" for many firms' promotional strategies as they seek to drive revenue.

Speaking at ad:tech London, she explained that this was due to the reliable return on investment that search advertising offers.

Unlike other forms of marketing, the success of particular content can be monitored, providing insight into whether consumers responding to advertising messages or not.

Ms von Abrams said she expected to see "an increasing commitment to search" even when the economy begins to recover.

She added that rich media advertising such as video will also "gain momentum" as the growth is restored to the UK, but search will continue to prove its worth.

Simon Mansell, managing director of TBG, claimed this week that web marketing has been somewhat immune to the recession because it is traditionally used for direct response - which does not generally diminish while the economy is contracting.

He noted that firms were also taking note of the fact that consumers are spending longer periods on the internet than ever before.

Innovative branding the key for small firms

Mon, 28 Sep 2009 15:09:28 GMT

Small and medium sized businesses have been urged to think creatively rather than defensively as they bid to market their goods and services during the recession.

Ray Jones, head of communications and external affairs for the Chartered Institute of Marketing, said it was important to avoid devaluing a strong brand by "discounting in a crisis".

He suggested that customers do not necessarily buy less in a downturn, they simply buy differently, meaning service providers should still be doing their utmost to attract their interest.

Mr Jones advised: "Nurture and hold on to your existing customers, before expensively searching new ones. Find new market space that the different economy offers.

"Research the market and find what new opportunities are being offered by a changing economic environment. Strengthen campaigns by showing solidarity with the customer – 'we're on your side'."

By innovating, firms can encourage more value-conscious customers to remain loyal to their brand, he suggested.

Eva Berg-Winters, senior manager and new media specialist at PricewaterhouseCoopers, recently claimed that firms should seek to advertise over the internet due to the medium's greater accountability.

This is unmatched by other channels and very attractive to firms wishing to assess their return on investment, she commented.

Firms encouraged to hire skilled IT professionals

Fri, 25 Sep 2009 15:09:25 GMT

Small and medium-sized businesses are able to benefit from hiring specialised IT professionals, it has been suggested.

According to Karen Price, chief executive officer at employment advisory service e-skills UK, all industries need, and will continue to require highly skilled technical professionals.

She said that there is arguably an even greater need for business-focused technologists in the current economic climate.

Ms Price added that those who can understand business needs, know how to apply IT to solve business problems, and can manage technology projects to deliver direct business value are vital for companies of all sizes both now and in the future.

Not only this, but she claimed the IT professional workforce will be "central to the UK's recovery from recession".

e-skills UK recently reported that the number of IT and telecoms professionals working across all businesses in the UK was down two per cent on the previous quarter to 1,119,000 at the end of Q1 2009.

However, it noted that this still amounts to a rise of four per cent in employment, when set against the previous year.

The number of people working in the software professions and as operations technicians rose by one per cent, while 14 per cent growth was seen in the IT support technician field.

Business support available for innovative graduates

Fri, 25 Sep 2009 15:07:25 GMT

Graduates interested in starting their own business should note that state support may be available to help them become self-employed.

The government is launching Flying Start, a scheme which will see £1 million invested in 5,000 graduates, who will be offered a place at one of 50 rallies aimed at inspiring small business innovation.

Commenting on the scheme, Dan Hawes, co-founder of the Graduate Recruitment Bureau, stated that degree holders with entrepreneurial flair "need to be harnessed to provide the seeds of growth for UK Plc".

He added: "The government is obviously keen to keep the unemployment figures down and have several initiatives to help graduates into work, which is a good thing.

"The business environment at this time is very challenging so graduates will need to consider the financial risk and their minimal business know-how, but with a good idea and plenty of hard work they will succeed."

According to the Association of Chartered Certified Accountants, almost two-thirds of Brits would like to be their own boss.

This entrepreneurial spirit is especially evident among 25-34 year olds, with three-quarters aspiring to one day run their own company.

Some 96 per cent of those surveyed claimed that small enterprises remain vital to their towns and cities.

Employers urged to seek compliance information online

Fri, 25 Sep 2009 15:05:25 GMT

Company bosses who are uncertain of their ground in terms of employment law should take the time to use advisory websites, it has been suggested.

Phil Flaxton, chief executive of not-for-profit initiative Work Wise UK, said large volumes of compliance information is available from a variety of sources on the internet.

He was commenting after the launch of a new Pay and Work Rights scheme by the government, which seeks to help vulnerable workers gain advice about their employment rights and report any abuses.

Mr Flaxton said any advice scheme offered to employers and employees has got to be welcomed and supported particularly in these difficult economic times.

He added: "Whilst there's information out there the employers has to have the wherewithal to go and find the information in the first place.

"There has to be a will be the employer to say 'oh well we're not really sure whether we're on solid ground so we need to take extra advice either from the government website or any others that are in existence."

The new Pay and Work Rights scheme considers such issues as the National Minimum Wage, the Agricultural Minimum Wage, the maximum working week, employment agency standards and gangmaster licensing.

Christmas parties remain crucial for staff members

Fri, 25 Sep 2009 15:04:25 GMT

Firms wishing to keep their employees happy as winter approaches should ensure they organise a Christmas party, it has been suggested.

A new survey conducted by Outsourced Events indicates that 60 per cent of workers still want and expect some form of festive celebration, while an even greater proportion – 85 per cent – believe a party is crucial for staff morale.

Employees also think the office celebrations should be subsidised by the company, with 55 per cent expecting a budget of £31 per head or more.

Just 40 per cent expected to see this level of expenditure, especially in light of the recession, but the finding certainly provides food for thought for employers seeking to minimise staff attrition.

Alexandra Sibley, director of Outsourced Events, said the topic was close to many peoples' hearts.

She added: "The Christmas do is a tradition in this country and one that the Great British working public are not willing to do without. There will certainly be scorn for those employers who don't.

"Events do not have to be expensive, there are good ways to tighten the purse strings and still do the right thing for employees at Christmas."

Last month, James Brian, product director for Monster.co.uk, claimed employees need reassurance over the security of their jobs in order to keep morale levels high.

Internships help businesses access skills

Thu, 24 Sep 2009 12:56:24 GMT

Businesses can benefit from offering internships to young people, it has been suggested.

Tom Richmond, skills advisor at the Chartered Institute of Personnel and Development, suggested that work placements could help small companies hire employees with greater skills.

Rather than simply taking applicants straight out of school or university, employers can use internships to assess individual applicants and see how they respond to the different challenges of the workplace.

Mr Richmond said the jobseekers themselves can also benefit from undergoing work placements, especially given that 72 per cent of firms cite a lack of experience as being the major barrier to hiring.

He added: "We look to internships as a really useful and valuable way of getting people into the workplace, so while they are perhaps looking for other work they can pick up some very important things to put onto their CVs."

Last month, the Forum of Private Business claimed small firms can use apprenticeships to their advantage by benefiting from the drive and creativity of younger people.

Phil Orford, chief executive of the organisation, said that by taking on young workers, firms also help the economy and provide individuals with the skills and confidence they need to enter a full-time job.

Caution is natural for small business owners

Thu, 24 Sep 2009 12:54:24 GMT

It is only natural for small business owners to be more cautious by nature than executives at their larger rivals, it has been suggested.

According to a spokesperson for the Forum of Private Business (FPB), larger firms often have vast resources to fall back on when lean times occur, but this is not the case for local enterprises.

He suggested that a degree of pessimism and caution is needed to avoid small companies overstretching themselves during difficult times.

The spokesperson said a lack of business confidence in the sector stemmed not only from the risks inherent with running a small company, but also the attitude of lenders.

He said: "The other thing that we've repeatedly found over the last 12 months or so is that access to finance is the big problem, it's holding [small firms] back and stopping them from developing the business and expanding."

A survey conducted by the Department for Business, Innovation and Skills found that 40 per cent of firms have developed "creative solutions" to strengthen their operations during the downturn.

Some 19 per cent have switched staff roles, 26 per cent have adjusted working hours, 33 per cent have invested in additional staff training, motivation and rewards, 15 per cent have recruited new employees and 64 per cent have explored new product areas.

Study points to drop in SME confidence

Thu, 24 Sep 2009 12:52:24 GMT

Confidence is down among small and medium-sized businesses (SMEs), a new study has indicated.

Some 57 per cent of SME owners surveyed by Amplify Research believe their companies will feel the effects of the recession for at least another nine months.

The survey, released this week, indicates that 48 per cent of businesses have seen their income fall by up to 20 per cent within the last six months.

Quarter two 2009 was the worst for 36 per cent of them in terms of orders and/or sales.

Meanwhile, 43 per cent of SME owners claimed they would have placed a greater emphasis on sales and marketing if they had anticipated the recession.

In an attempt to drive revenue, 43 per cent of SMEs are now investing in improving their websites, while 57 per cent are doing sales promotion activities.

Some 38 per cent are doing more sophisticated business work and are establishing new partnerships and joint ventures.

With the Confederation of British Industry this week predicting a return to economic growth during the third quarter of the year, hopes are high that a rise in SME confidence will follow.

The business group expects to see 0.3 per cent growth between July and September.

IT culture in business promoting longer working hours

Wed, 23 Sep 2009 15:35:23 GMT

New research has shown that people in predominantly IT jobs work longer hours than other employees due to the corporate culture.

A study by the IT Job Board found that 35 per cent of people in IT jobs work for more than 48 hours per week.

It also found that 7.3 per cent work between 60 and 75 hours a week, while 3.8 per cent claim to be working in excess of 75 hours per seven days.

Reasons cited for this increase included high volumes of work (32 per cent), what management expected (9.5 per cent) and the fact they are paid overtime (nine per cent).

Some 34 per cent believed their work productivity had been negatively impacted by their longer hours, while 66 per cent thought their social life had been affected and 37 per cent claimed the hours had damaged their health.

Teresa Sperti, head of international marketing at The IT Job Board, said company bosses should "step in to address any issues before they escalate", with respects to staff health or productivity.

She added: "What is clear to see, is that many are working longer hours as a result of the increased workload, and because it seems to be part of their company's overall working culture."

Fujitsu recently claimed that in order for businesses to be competitive then they need adaptable IT setups.

Caution urged over suspicious web links

Wed, 23 Sep 2009 11:41:23 GMT

Internet users can protect themselves against undetectable malware by being "savvy" enough to avoid suspicious web sites and communications, it has been claimed.

Alan Phillips, chief executive of 7Safe, said that following an "innocuous looking" link may be all that is needed to damage a computer.

He was commenting after an exclusive interview in The Times newspaper revealed that the Clampi virus, a new type of Trojan, has been created in a bid to steal online banking details.

Mr Phillips stated: "It would be prudent to assume that there are a lot of viruses and Trojans about that are not yet detected by anti-virus software.

"It's common for organisations to have much tighter security than home computer systems, but against undetected threats the risk is still there."

He stated that it is essential to have an information security plan, as there is "no quick fix" for dealing with viruses and other security issues.

"Educating staff via a formal training programme would ideally be part of such a plan," he suggested.

Websense reported last week that there has been a 233 per cent growth in the number of malicious sites in the last six months - and a 671 per cent growth over the last year.

Business Link says recession encourages startups

Wed, 23 Sep 2009 11:40:23 GMT

Many people may have been added impetus to start a company during the recession, it has been suggested.

According to Business Link adviser Ganesh Selvarajah, the downturn has given many individuals "food for thought" in the sense that they are looking at self employment as a "definite alternative" to employment.

He claimed that this is especially the case for the younger generation who may feel there could never be a career for them in the traditional form.

Mr Selvarajah commented: "A lot of start-ups we have seen have come from young people who have been quite imaginative when it comes to launching a product or service for their own generation.

"They have come up with some interesting business solutions and spotted some good gaps in the market."

He suggested that for those able to access the necessary finance and develop their idea or product, the small business sector can be very welcoming.

Last month, Domain Informer editor Kabir Bedi noted that starting an internet-based company can be a cheap option for those wishing become self-employed.

He explained that there are a variety of tools and cheap hosting solutions available on the web, while savings can be made by avoiding spending money on premises and equipment.

Young people committed to small business dream

Wed, 23 Sep 2009 11:38:23 GMT

The UK remains a nation of entrepreneurs despite the current economic worries, according to a new study.

Research conducted by the Association of Chartered Certified Accountants (ACCA) indicates that almost two-thirds of Brits would like to be their own boss.

Among 25-34 year olds, the entrepreneurial spirit is even stronger, with three-quarters aspiring to one day run their own company.

Survey respondents also recognised the value of small businesses to the local economy, with 96 per cent claiming them to be vital to their towns and cities.

Glenn Collins, head of business advisory services for ACCA, described the sector as "the lifeblood of the UK economy".

He added: "It is wonderful to see that people have such a high regard for the role small and medium-sized enterprises play within the community.

"Running a business is seriously hard work and requires skill, dedication and drive. It is hugely encouraging that so many respondents – especially so many young people – aspire to be their own boss. This entrepreneurial attitude bodes extremely well for the next generation of business leaders."

Last week, a study conducted by The Entrepreneurs Board found that 28 per cent of people think entrepreneurs are likely to have the most positive effect on bringing Britain out of recession over the next year.

Adaptable IT essential for businesses

Tue, 22 Sep 2009 15:36:22 GMT

Businesses need to ensure that have an adaptable IT setup in order to be competitive, according to Fujitsu.

The IT services and products company cited recent research by the company which shoed that two-thirds of leading industry professionals think their IT infrastructures are not flexible enough to meet changing business priorities.

In the report, 61 per cent of respondents said their operation's IT infrastructure will need to adapt and be more flexible in order to cope with present economic conditions.

Chris Bone, enterprise products and solutions specialist at Fujitsu, said a firm's IT infrastructure is a "fundamental element of business success" and should be one of the main areas of importance for firms.

He added: "If their infrastructures are not agile enough to provide those new services quickly there's a double impact on the business.

"The first one is a bottom line impact because their IT infrastructures are costing them more than they essentially should, but also there are missed opportunities in terms of maximising the potential of new business ventures."

Recent research by the Economist Intelligence Unit ranked the UK in sixth place in the world's top environments for a competitive IT sector.

The UK was down three places on the ranking from its 2008 position of third.

Nationwide postal strike would put a strain on UK businesses

Tue, 22 Sep 2009 14:51:22 GMT

Businesses across the UK will be adversely affected by ongoing postal strikes according to one enterprise organisation.

GrowthBusiness.co.uk claims the results of a ballot of Communication Workers Union (CWU) members will be of significant interest to businesses.

The results of the ballot for strike action are expected on October 8th or 9th.

Nick Britton, editor of GrowthBusiness.co.uk, claims that small and mid-sized businesses across the UK are already suffering "major disruption" to their operation as the result of postal strikes.

He added: "A nationwide walk-out would put critical strain on tens of thousands of companies which are already labouring under tough trading conditions and cash flow problems."

According to the expert, large numbers of businesses will be faced with excuses for late payments of services or goods as a result of the postal strike.

"It looks as though businesses are going to hear a lot more of that old excuse for late payment, 'the cheque’s in the post'," he said.

The Royal Mail recently described the CWU strike ballot as totally unjustified and damaging to customers.

It adds the moves are clearly attempts to undermine the modernisation of the postal service during a rapidly changing marketplace where mail volumes are down by around ten per cent year-on-year.

Technology project over-runs could hike costs

Tue, 22 Sep 2009 14:49:22 GMT

Over-runs in IT project deployments can dramatically increase associated costs, according to new research.

A survey conducted by the Customer Experience Foundation (CEF) and sponsored by Empirix found that the financial implications of delays to technology projects are largely overlooked by businesses.

The research found the average delay on projects when rolling out new technologies was over seven months, which can add an extra 90 per cent on top of the original budget.

Poor project practice can also as much as quadruple additional costs compared to best practice roll-outs, according to the study.

Professor Morris Pentel, founder and chairman of the CEF, said: "It is difficult to comprehend how these huge cost overruns and delays happen in at least 25 per cent of these types of projects.

"The study also makes it clear that the impact of delays is not only financial, but also affects the customer experience of the contact centre and the brand behind it."

Testing of new technologies before roll-out can help to avoid delays and costs associated with failures, so should be seen as critical to "good project practice", added Mr Pentel.

Michael Rose, editor of Freelance Advisor, recently claimed that wireless internet can help offices to be better organised and create a more professional space in which to entertain clients.

Online banking threats to business

Mon, 21 Sep 2009 15:25:21 GMT

Businesses should look to secure their network after one incident shows how a firm can lose lots of money due to dangerous online malware programs.

US construction firm Ferma lost $447,000 in a matter of minutes after an online criminal accessed its bank accounts alongside a legitimate user.

MIT Technology Review reports that an account manager at the firm accessed its bank account online using a one-time transaction authentification number.

This process was hacked in real-time and a hitchhiker had invaded the computer to launch a malicious program which siphoned the money out of the accounts in minutes.

All of this theft was achieved despite the company's use of a one-time password, which is a digital code issued every 30 or 60 seconds.

Joe Steward, director of malware research for SecureWorks, told the news provider businesses should "fundamentally rethink" how they interact with their banks online.

He added: "Putting all the issues with the technology aside, if [attackers] can run their code on your system, they can do anything you can do on your computer. They can become you."

Nicki Wallace, global solutions marketing manager at business security solutions company RSA, recently claimed that a business's IT security could be compromised by employees and other associates sharing sensitive material via email and social media.

Employed mothers looking for home working

Mon, 21 Sep 2009 15:22:21 GMT

Mobile working is an important factor for mothers, according to new research.

A poll from Workingmums.co.uk, a jobs website dedicated to working mothers, found that 79 per cent of respondents said they need jobs with some degree of flexibility.

Over half of those mothers surveyed said they wanted some form of home working from their employer, while 85 per cent claimed that offering home working for full time jobs made for a "family friendly employer".

Gillian Nissim, founder of Workingmums.co.uk, said the results show that "flexible working is top of working mums' agenda and will no go away".

"It is the key issue that employers must grapple with if they want to retain the kind of skills offered by working mums," she added.

"The recession has not reduced the urgency of this issue for working parents and employers who want to be prepared for the eventual upturn in the economy would do well to listen to their voices rather than risk losing them to more forward-thinking rivals."

Peter Gradwell, managing director of internet service provider Gradwell, recently claimed that modern IT technologies such as business broadband, Voice-over Internet Protocol communication, video conferencing and hosted exchange provide solutions that have helped to overcome some barriers to home working.

Small firms urged to reduce energy use

Fri, 18 Sep 2009 11:05:18 GMT

Small businesses are in a unique position to adopt energy efficiency measures more easily and quickly than their larger counterparts, it has been claimed.

However, David Caro, energy and environment chairman at the Federation of Small Businesses, said such firms are often limited by time constraints and are not always aware of where and how to access advice on how to go green.

He was speaking after research conducted by the Carbon Trust indicated that UK firms are spending £3.3 billion per year on wasted energy.

A study of 1,500 small and medium-sized businesses indicated that 52 per cent are being forced to "make do and mend" with old, inefficient equipment as they do not have the spare capital to invest in green technology.

Some 60 per cent of firms wait until their equipment breaks down completely before replacing it, the trust revealed.

Gareth Elliott, senior environment policy adviser at the British Chambers of Commerce, said "cash is king" as the downturn ensues, meaning firms should take green issues seriously.

He added: "The first place struggling businesses should look to redeem cash is in their business premises where it's possible to eliminate energy wastage."

Last week, Chris de Silva, managing director of NEC Philips Unified Solutions, told the Telegraph that small firms can use reduce costs and improve their IT systems by investing in unified communications.

Redundancy decisions must be based on range of factors

Fri, 18 Sep 2009 11:01:18 GMT

Companies should be wary of taking factors such as sickness into account when selecting candidates for redundancy, it has been suggested.

Mike Emmott, adviser of public policy at the Chartered Institute of Personnel and Development (CIPD), said decision makers should always consider a broad base of factors in such circumstances, of which performance may be one.

He said sickness should not on its own be a determinant of whether somebody is made redundant, but if it contributes to them being highly unproductive, it cannot be ignored.

Mr Emmott did urge caution however, especially where identifiable long-term illnesses are concerned, as they can often be regarded as disabilities.

He stated: "If someone were to believe a long-term health problem had actually made them more vulnerable to redundancy and they had been dismissed, even if it was said to be redundancy they might claim it was an unfair dismissal on the grounds of disability.

"Just taking sick leave isn't and shouldn't be a basis for redundancy but could contribute to a wider picture of someone whose contribution could be spared."

Simplyhealth reported this week that over half of people living in Britain are so scared of losing their job in the current climate that they are risking their health by working through illness.

Some firms benefiting from recession

Fri, 18 Sep 2009 10:57:18 GMT

Despite the effects of recession, many small business owners are finding it easier to expand and grow, a new study has indicated.

According to research conducted by Citibank, 32 per cent of owners say the availability of talent has improved during the downturn.

Some 24 per cent said their share of business versus the competition had improved, while 36 per cent reported an improved commitment and work ethic in employees.

The economic climate has led to increased employee retention levels, 31 per cent of owners reported, with recruitment and training costs down as a consequence.

Maria Veltre, executive vice-president of Citibank's Small Business Segment, said firms were resilient and are making the best of the situation even though business conditions are not ideal.

She added: "Small business owners are demonstrating their grit in adapting to the challenges of today's economy. Our survey findings point to this fact and our bankers see it everyday in working with their clients in our branches across the country."

According to recently published research from Lloyds TSB Commercial, the majority of small firms are hopeful for an increase in sales and orders by the end of 2009.

Brits dream of running a company

Thu, 17 Sep 2009 10:20:17 GMT

The UK's small business sector could be boosted by an influx of new start-up founders, a new study has discovered.

According to The Entrepreneurs Board, 38 per cent of people say they would like to run their own business at some point during their career.

Main motivating influences include the desire to work flexibly, to be challenged, to earn more money and improve on goods or services currently being offered by other firms.

Of those people against the idea of running a company, respondents cited the fear of financial insecurity, stress worries and the lack of a good idea as the main reasons.

Guy Rigby of accountancy firm Smith & Williamson, a partner of The Entrepreneurs Board, said the creative spirit is "alive and kicking in the UK".

"Not only do the general public increasingly understand and back entrepreneurship, but many of them are itching to get more involved. This kind of enthusiasm can only bode well for our economy," he added.

Earlier this summer, research conducted by uSwitchforBusiness.com indicated that nearly one third of UK workers would start their own business if they lost their job in the near future.

This study indicated that the idea of running a company appealed to as many as eight in ten people.

Public appreciates value of small business sector

Thu, 17 Sep 2009 10:19:17 GMT

The small business sector is equipped to lead the UK economy out of recession, according to a new survey of public attitudes.

Research conducted by The Entrepreneurs Board indicates that 28 per cent of people think entrepreneurs are most likely to have the most positive effect on economic growth over the next year.

The government, which received 24 per cent of the vote, large businesses (13 per cent) and trade unions (three per cent) were also identified as potential contributors.

With this in mind, 41 per cent of firms said tax incentives should definitely be offered to start-ups, while 34 per cent claimed they should be considered.

Brian Chernett, founder of The Entrepreneurs Board, said start-ups are "vital" to recovery in the UK and the public understands this.

He added: "We should do everything possible to help entrepreneurs make their businesses more successful, whether it is tax cuts or providing business support and guidance.

"Experiential business learning helps business owners learn by 'doing' and inspires them to achieve their ultimate dreams while creating economic value for the country."

Last month, Business Secretary Lord Mandelson claimed measures introduced by the government to support the small business sector were working.

He told the Sunday Telegraph that the decision to provide up to £360 million in loan guarantees and defer up to £3 billion in business taxes had saved many firms from closure.

Efforts needed to secure customer confidence

Thu, 17 Sep 2009 10:17:17 GMT

Customer confidence and loyalty is "really important" in the current economic climate, it has been suggested.

According to Pam Gregory, lead on consumer advice for the Trading Standards Institute, consumers are looking for businesses who treat them fairly and offer high standards of service, especially with so much competition in the market.

She said all employees must be well trained to recognise consumer rights and show a willingness to deal with any complaints quickly and efficiently.

Ms Gregory added: "Trained staff are going to get a result quickly and confidently. This has got to save time and money for any business, particularly now."

A new survey by the Department for Business has revealed that one in three people believe their consumer rights have been ignored, whilst 28 per cent of people are more likely to complain about goods purchased during the recession.

The report also found that 58 per cent of consumers claim they have complained to a store about goods or asked about a refund or exchange.

Entrepreneurs are measured risk takers

Thu, 17 Sep 2009 10:16:17 GMT

Although entrepreneurs are risk takers, these risks are always measured as opposed to reckless, it has been claimed.

According to the News Press blog, although entrepreneurs frequently go out on limbs, the ones that make it "generally test that limb first to make sure it has a good chance of bearing their weight".

The writer claims entrepreneurship can be applied to virtually any field or profession, as regardless of what products and services are already available in a particular area, there are always opportunities to expand and improve upon them.

It is argued that certain other traits are associated with business starters, including the drive to succeed, self-reliance and opportunism.

They added: "Rather than waiting for someone to issue instructions, you take initiative. And you can be innovative — you constantly think 'out of the box' when attempting to meet challenges.

"[Instead of] feeling defeated when you encounter roadblocks to your goals, you feel energised. Challenges spur rather than deter you."

Earlier this month, Domain Informer editor Kabir Bedi claimed that setting up an online business is a relatively cheap option for entrepreneurs compared to bricks and mortar companies.

There are a variety of tools and cheap hosting solutions available on the web, he suggested.

Paternity leave could rise to six months

Wed, 16 Sep 2009 16:57:16 GMT

Small business owners are being warned that new government rules on maternity and paternity leave could mean fathers are able to take up to six months off work.

Under current law, women can take up to a year away from work on maternity leave and new proposals could see up to six months of this being transferred to the father during the second six months of the child's life.

The changes were unveiled by prime minister Gordon Brown at the Trades Union Congress conference in Liverpool and will be introduced for parents of children due on or after April 3rd 2011.

Such plans have garnered criticism from business groups saying that the current economic climate means it is not the time to be implementing new employment legislation.

British Chambers of Commerce director general David Frost said: "There is absolutely no guarantee that businesses are going to be back to full health by 2011. This is going to be an administrative nightmare for businesses."

However, the government has reassured businesses that the effects will be minimal.

"The number of businesses affected is expected to be small - less than one per cent of small businesses - and we will work with business to make sure any changes are introduced in a way that minimises burdens and gives them predictability in the provision of leave," said business minister Pat McFadden.

Currently fathers are entitled to two weeks paternity pay.

Jobcentre Plus criticised for failing to support small firms

Wed, 16 Sep 2009 11:12:16 GMT

Small businesses need greater support as they bid to hire the staff they require to support their expansion plans, it has been suggested.

According to the Federation of Small Businesses (FSB), 34 per cent of member firms find Jobcentre Plus 'ineffective' or 'very ineffective', while another 49 per cent do not know whether it works well or not.

It claims that while many small firms have plans to hire in the near future, this is not a straightforward task with the current systems in place.

John Wright, national chairman of the FSB, said its members felt let down by a service "which appears to offer them precious little" for the £3.36 billion Jobcentre Plus spends each year.

He commented: "As small businesses are the country's key employers, and are known to give a larger proportion of jobs to those who have previously been unemployed than big businesses, it's time the government reformed Jobcentre Plus and made it work effectively.

"Small businesses are big employers, and with 57 per cent without employees keen to employ people in the future, they must be given all the support they need to create jobs, and so effectively tackle the problem of rising unemployment head-on."

Last week, Rob Hamilton, founder of serviced office broker Instant Offices, claimed that small business owners should attempt to tap into the graduate market as they grow their companies.

FSB warns of public procurement struggle for SMEs

Wed, 16 Sep 2009 11:10:16 GMT

Cost-cutting measures by local authorities are denying Scottish small and medium-sized enterprises (SMEs) access to public sector procurement deals, it has been claimed.

Stuart McKinnon of the Federation of Small Businesses Scotland said that moves to aggregate contracts and merge them into larger orders are harming the ability of SMEs to compete with larger rivals.

According to Scottish Business Insider, many successful bidders require national coverage to honour a contract, something the majority of SMEs cannot offer due to the smaller scale of their operations.

Mr McKinnon said: "SMEs can collaborate to compete for these contracts... but so far I haven't come across any successful small business collaborative efforts winning a procurement contract."

He recognised that firms were not being squeezed out intentionally, but called for greater support for the small business sector as the recession ensues.

This week, Trades Union Congress (TUC) general secretary Brendan Barber claimed that the government risks limiting access to public sector work for companies of all sizes if it implements spending cuts.

Speaking at the TUC annual conference in Liverpool, he pointed out that many UK firms rely on public sector contracts and would struggle to compensate for their loss.

Press releases a marketing option for small firms

Wed, 16 Sep 2009 11:06:16 GMT

Small businesses should attempt to publicise their activities and achievements where possible, it has been suggested.

According to Consilium Design Agency, getting the right media coverage at the right time and with the appropriate message "can make all the difference" in terms of attracting clients and customers.

A spokesperson for the firm acknowledged that the majority of small companies cannot afford to pay fees to public relations companies in order to promote themselves to a wider audience, especially when there is no guarantee of media exposure.

However, she claimed that by writing press releases and circulating them to local news providers, company bosses may be able to get their firm's name in lights.

Last month, Ben Harris, managing director of the New Brand Vision Group, claimed firms should invest in the promotional side of their business as this makes a huge difference to the image portrayed in the local community.

He even suggested seeking the help of outside experts to advise on the formation of marketing strategies.

Mr Harris stated: "Getting your initial marketing right is very important because otherwise you will end up having to change it sooner or later and while it might seem like a lot of money at the beginning, if you spend it wisely you will end up saving in the end."

IT helps employees work from home

Tue, 15 Sep 2009 11:07:15 GMT

Small businesses can use modern IT to help overcome the barriers to home working, it has been reported.

Peter Gradwell, managing director of internet service provider Gradwell, claimed that working from home is becoming an increasingly popular option in the UK as more professionals seek to improve their work/life balance, reports Fresh Business Thinking.

However, he claimed that concerns about monitoring and assessing staff performance, providing reliable IT and ensuring a professional and consistent appearance can dissuade some firms from embracing smart working.

Internet-facilitated innovations such as business broadband, Voice-over Internet Protocol communication, video conferencing and hosted exchange provide solutions for the majority of concerns, Mr Gradwell added.

He stated: "The importance of a high-quality, fast internet connection cannot be underestimated.

"It is vital that home workers can access a professional, unrestricted connection with a quality of service guarantee to avoid downtime and prevent damage to customer relationships as a result of delayed communication."

Last month, Mark Seemann, product strategy and development director at Outsourcery, told Computer Weekly that the UK's copper line network needs to be replaced with fibre optic broadband technology as soon as possible

He said that many small firms continue to find their ambitions
"severely hampered" by an inability to access high-speed, low contention broadband.

RBR says rural firms escaping worst of recession

Tue, 15 Sep 2009 11:05:15 GMT

Although some rural businesses have suffered during the recession, most firms based in the countryside have been shielded from its worst impacts, it has been claimed.

Dr Paul Wilson, spokesperson for Rural Business Research at the University of Nottingham, claimed that many such companies have been largely immune from the downturn because of the sectors they operate in.

Many have continued to thrive because much of their output is focused on producing food, which has seen an increase in prices, he noted.

Dr Wilson commented: "With respect to agricultural and horticultural businesses the credit crunch impact has not been as great as it has been on other sectors of the economy.

"It is probably the more niche markets that have been more affected such as organics and local food where the consumer downturn in spend generally has impacted."

Back in July, the Federation of Small Businesses called for more support to be offered to village shops and country pubs in order to help them survive the recession.

Linda Walton, rural affairs and tourism chairman at the FSB, said the Rural Rate Relief scheme, which was specifically set up to help rural businesses, was being "chronically underused".

She said that local amenities were at the heart of village life and the failure of such business could "devastate" local communities.

Expert says insurance vital for small retailers

Tue, 15 Sep 2009 11:03:15 GMT

Small retailers should ensure they take out all the necessary insurance policies to limit their losses in the event of unforeseen circumstances, it has been suggested.

According to Business Link advisor Ganesh Selvarajah, the majority of small companies do cover themselves and are "sensible" to do so.

He was commenting after a report by the Retail Crime Commission said shoplifting had increased in the UK.

Mr Selvarajah noted that there is always a degree of expense when it comes to insurance – both in terms of the need to meet conditions required to validate policies and the requirement to prove losses.

With shoplifting in particular this can be difficult, he claimed, as firms may not be able to pin it down to a single incident, as required by some insurers.

He added that the level of cover taken out "depends very much on the individual insurance and what the cover will give you".

However, Mr Selvarajah reiterated his view that the potential costs involved with failing to insure premises and property outweigh the initial outlay.

According to research by international insurer Hiscox, 44 per cent of small to medium-sized businesses are at risk of theft due to security lapses.

Firms urged to embrace online marketing

Mon, 14 Sep 2009 13:01:14 GMT

Online video is becoming an increasingly important sector within the web marketing realm, it has been claimed.

Speaking after a report from Web TV Enterprise predicted that web video ad spend is to increase by 50 per cent next year, Elemental account director Rachel Hawkes said online firms should use such content throughout their sites to advertise products and services.

She claimed that video should not just appear on one page of an e-commerce website, but on all relevant pages including the home, brand and product pages, and company blog.

"These videos should, however, stem from a central place so that a customer who wants to sit and view video after video - and many do - can do so easily," Ms Hawkes added.

"By doing this, and by adding keyword tags to each video, this will also serve as another cross-sell or up-sell tool - by showing videos of similar products and services."

She suggested that all e-commerce businesses should make it standard practice to show text descriptions next to the videos, allowing the audience to get an idea of what they are going to watch before they press play.

Text and video seed well into search engines, providing businesses with effective content to help drive search engine optimisation, Ms Hawkes noted.

"It's so easy for anybody to create videos from their mobile phone, web cams or digital camera, but a website is really the shop window of a business, so professionally creative video is going to yield more positive results," she said.

According to Web TV Enterprise, ten per cent of businesses plan to double their budget allocation for online video advertising.

Wireless internet helps keep offices organised

Mon, 14 Sep 2009 12:59:14 GMT

Mobile technology not only facilitates internet access on the move, but allows small business owners and employees to work in a clutter-free environment, it has been claimed.

Writing for Freelance Advisor, editor Michael Rose said the majority of start-up firms, likely to be based in the home or rented premises, cannot afford the luxury of vast, expansive offices in which to conduct business.

He said it is "fantastic" to have any sort of office as a base, saying that such areas provide "a distraction-free space" and "a professional venue to meet your clients".

However, Mr Rose noted that the need to provide computers with power and web access means they can easily become a tangled web of wires, which not only irritate staff but also detract from the professional image of the company.

"If you like gadgets and gizmos then it won't be long before you've got wires all over the place, dangling from your desk and tying themselves in knots," he added.

"There are two simple solutions... go wireless... or, when you need power, hide the wires."

Last week, John Ingram, operations director at BroadbandChoices.co.uk, claimed that mobile broadband could be seen as either an add-on or stand alone service.

Broadband revolution facilitating web marketing

Mon, 14 Sep 2009 12:57:14 GMT

The increasing popularity of broadband is allowing businesses to better exploit the online marketing market, it has been suggested.

According to Nicki Lynus, head of research at IAB UK, the trade association for digital advertising, web users have been encouraged to do more online and increasingly see it as a platform for doing business.

Speaking at the Westminster Media Forum Keynote Seminar: The Future of Advertising, she stated: "What's driving the upturn internet advertising spend? 94 per cent of internet connections are now broadband. We know for a fact that the upturn in broadband connection means people do a lot more online."

The increase in online TV and video viewing generated by broadband access has played a part in the growth of internet advertising, said Ms Lynus.

She claimed that around two-thirds of those who watch TV and video on the web do so for "purely made-for-internet content."

YouTube videos, UCG [User-Generated Content] clips and professionally made internet videos are all increasingly popular, she suggested, increasing the potential for web marketing.

Global media service agency ZenithOptimedia recently predicted that the industry will grow by ten per cent this year, and reach a 15.1 per cent share of global ad expenditure by 2011.

Small business role for IT servers

Mon, 14 Sep 2009 12:55:14 GMT

Small business servers are an option for companies seeking a low-cost, efficient and reliable IT system, it has been suggested.

Writing for the Financial Times, industry commentator Paul Taylor said getting the right technology solution can prove problematic for many firms, but options are available for those keen to establish an IT infrastructure.

Rather than "cobbling together" a system using off-the-shelf hardware components and software, he suggested that many firms are choosing to invest in physical hardware.

"Many small and growing businesses still want to operate and control their own systems and data," he suggested.

Mr Taylor commented that anti-malware protection for e-mail, easily configured data storage and file sharing, and faster backup capabilities can be built in to servers.

In addition, they can be designed to allow remote computer access and easier collaboration between colleagues, something that may be increasingly important given the increasing popularity of home working, he suggested.

Small business servers offer "all the basic features that a small business needs to set up and manage a sophisticated IT system – and does it without allowing technology to get in the way", he noted.

Windsor Holden, principal analyst at Juniper Research, recently highlighted the benefits of cloud computing for small businesses preferring to use hosted IT software.

BCC suggests negative interest rates to boost credit supply

Fri, 11 Sep 2009 11:38:11 GMT

The Bank of England should consider instigating negative interest rates as it bids to stimulate economic activity, it has been claimed.

David Kern, chief economist at the British Chambers of Commerce (BCC), said such action could prove beneficial to small firms as it would discourage the hoarding of cash and encourage the banks to lend more.

"Positive signs of recovery cannot obscure the risks of a relapse. The economy is still very fragile and the productive sector is vulnerable," he stated.

Mr Kern was commenting after the Bank's Monetary Policy Committee decided to hold its base rate - the interest rate paid on deposits kept by commercial banks – at 0.5 per cent for the sixth successive month.

The committee also decided against extending its £175 billion quantitative easing programme following the additional £50 billion injection last month.

It said it will take another two months to filter the additional finance into the economy, but will monitor progress in the meantime.

Mr Kern said the asset purchasing scheme should be extended by a further £25 billion in order to buy additional company debt.

Bosses encouraged to set positive example for employees

Fri, 11 Sep 2009 11:36:11 GMT

Business owners who wish to improve employee engagement may need to make themselves more visible to achieve this aim, it has been suggested.

Research conducted by career management consultancy Right Management indicates that only a third of UK workers believe their bosses lead by example.

In a study of 15 countries, the UK managers ranked only tenth in the poll in terms of how well they are viewed by employees, coming in behind those in India, the US, Australia, Germany, China and several others.

Right Management claims there is a clear link between perceptions of senior leadership and the level of employee engagement - and therefore the performance of the organisation.

While 73 per cent of those who view their senior leadership are favourably engaged, this figure drops to 32 per cent among those who hold them in low regard.

Jayne Carrington, Right Management's managing director, said senior managers need to be mindful that the problems relating to recession do not distract them from leading from the front.

She added: "It is the leaders who inspire and engage their staff who will help their companies adapt and survive in difficult markets.

"Strong and visible leadership will be the key not only to our recovery, but also to ensure as a nation we stay competitive against both emerging and traditional markets."

Earlier this week, Robert Janes, chair of judges at the National Business Awards, said decision makers should be open with their employees, helping them to become stakeholders in the company.

Nationwide Consumer Confidence Index rises during August

Fri, 11 Sep 2009 11:35:11 GMT

Small companies – retailers especially – may be encouraged by latest findings by building society Nationwide, which claims consumer sentiment is continuing to rise in the UK.

The organisation's Consumer Confidence Index recorded a two point increase in August to 63, with a three point rise seen in the Expectations Index to 94.

Nationwide's Present Situation Index also rose by one point – the first increase since April 2009.

Martin Gahbauer, chief economist at Nationwide, said consumers were beginning to feel genuinely "more positive" for the first time since the onset of recession, potentially indicating that they may now be more willing to spend rather than save.

He claimed that the rise in positive sentiment across all the indices was "no surprise", since key economic indicators suggest the bottom of the recessionary cycle has already been reached.

"It is likely that there will be a protracted recovery and we may see some volatility in the data as factors such as the rise in fuel duty affect sentiment," Mr Gahbauer added.

"Although positive news about the housing market may have helped boost confidence, consumers' views about spending remain relatively cautious, possibly because the level of heavy discounting seen earlier in the year has now subsided."

The British Chambers of Commerce predicted this week that gross domestic product should rise by 1.1 per cent in 2010.

Relevant email marketing key for businesses

Fri, 11 Sep 2009 11:34:11 GMT

Email marketing campaigns must be relevant and rewarding for their target audience in order to be successful, it has been claimed.

According to Matt McNeil, founder of Sign-Up.to, some demographic groups can be demanding and require firms to be a bit more savvy their promotional techniques.

He was commenting after research from email marketing firm Epsilon showed that 18 to 25-year-olds are more receptive to digital marketing campaigns than older consumers.

"This does make sense because they are the generation that has grown up with email as a consistent medium and has not been introduced part way through their generation," he noted.

Mr McNeil said personalising emails was the key to engaging with less responsive customers, something that can lead to higher sales figures.

In terms of identifying a target audience, firms can utilise their own insight gathered from normal interactions and can also conduct testing, he suggested.

"You can make as many assumptions as you like but you really need to test with live data to see if people are responding to your campaigns," Mr McNeil added.

Sign-Up.to recently reported that more than a quarter of customers who open their emails end up clicking through to their website – something which may hint at the success of particular marketing messages.

Firms must form disaster recovery plans

Thu, 10 Sep 2009 14:13:10 GMT

Many entrepreneurs are continuing to work without a comprehensive disaster recovery plan, despite the risk involved with ignoring business continuity considerations.

This is the claim of small business commentator Jennifer Walzer, who says many people see the idea of developing plan as being overly tedious and time-consuming.

Writing for the New York Times, she claimed firms can break down the continuity planning process into smaller building blocks, covering major areas like data, communication and people in a bid to make the task seem more manageable.

The most common business disaster is data loss, Ms Walzer stated, which can result from a number of causes including human error, hardware failure, natural disaster and theft.

"Fortunately, data loss is easy to recover from if you have a backup solution in place," she added.

She urged business owners to familiarise themselves with the information stored on their systems, consider backup options including outsourcing, attribute responsibility to employees where applicable, test the disaster recovery plan and review it regularly.

Bharat Thakrar, head of business continuity at BT Global Services, recently claimed that "unpredictable and highly selective acts of God and man" such as floods, fires and terrorist attacks have the potential to destroy businesses where continuity plans are not in place.

Small firms urged to tap into graduate market

Thu, 10 Sep 2009 14:11:10 GMT

Small business owners should consider hiring graduates in a bid to boost productivity and expand their operations, it has been suggested.

Speaking to the Daily Mirror, Rob Hamilton, founder of serviced office broker Instant Offices, said small firms should be seeking to add to their pool of talent as the recession ensues.

He claimed that graduates are a cost-effective way of bringing new blood into companies as, despite their higher education experience, they are less expensive to employ.

This makes them an attractive option for companies looking to manage their costs in a challenging environment, Mr Hamilton said.

He added: "Graduates are enthusiastic and bring fresh thinking into the business. They are flexible and dynamic, and can be used to support the company in a number of different areas.

"Offering employment to graduates can give them an invaluable experience in the workplace, which can provide them with an opportunity to kick-start their own career."

Mr Hamilton reassured small company bosses that hiring a graduate will not require excessive amounts of administrative work, pointing the in the direction of the government's Business Link portal for advice on compliance and contract writing.

Research conducted last month by Barclays indicates that almost half of all small businesses in the UK intend to grow this year.

Franchising an option for keen businesspeople

Thu, 10 Sep 2009 14:10:10 GMT

Individuals keen to enter the world of self-employment can run a business even with limited experience, it has been claimed.

Speaking to the Daily Mirror, Bolton-based builder David Garrett, 44, explained how he turned to franchising in order to break into the small business sector.

He approached central heating firm Blazes with a view to starting a new operation in his home town, attracted by the strategic and administrative benefits of starting a franchise rather than a company from scratch.

Mr Garrett explained that as he was able to work from home, overheads were kept to a minimum and the firm's existing business plan was able to prove its worth.

He told the news provider: "I thought about setting up a business using my experience of the building sector. However because that sector was hardest hit, I needed to find another way.

"I'd never have gone into a business I didn't know, such as the fireplace and heating sector, but chose Blazes when I realised how much back-up they offer."

Blazes says franchise owners can earn up to £52,000 a year for an 18-hour week by year four – highlighting the potential benefits of becoming self-employed.

Earlier this year, Lori Kiser-Block, president of consulting network Franchoice, said individuals who have purchased franchises in areas where consumer demand exists are thriving despite the downturn.

New web firms cheap to set up

Wed, 09 Sep 2009 13:55:09 GMT

Setting up an online business may prove to be much more profitable than a bricks and mortar shop as the recession ensues, it has been suggested.

According to Domain Informer editor Kabir Bedi, this is potentially the best time to be starting a business – in the depths of a recession.

He suggested that the falling value of goods and services sought by individuals launching an enterprise play into their hands, especially when their company is web-based and start-up costs are relatively low.

Mr Bedi said: "In normal scenarios, it is very easy to get capital but just everything costs more. So, even if you begin with an easy capital, setting up a business would turn out to be a rather expensive affair."

He added that for those building a website, there are a variety of tools and cheap hosting solutions available on the web.

"And even the web development companies have reduced their prices," he noted.

Vanessa Canzini, a spokesperson for eBay, recently claimed that many people have been encouraged to found companies as a result of the recession.

She said the rise in the number of firms becoming insolvent had created many market opportunities for ambitious new enterprises.

Owners urged to seek business advice to secure company futures

Wed, 09 Sep 2009 13:54:09 GMT

Small business owners may stand a greater chance of long-term success if they are prepared to seek advice form more experienced peers, it has been proposed.

According to entrepreneur Brad Rosser, the former head of corporate development at Virgin, just 20 per cent of start-ups survive to see their fifth birthday.

While few of these are likely to have collapsed with significant losses, the line between success and failure can be very fine, he suggested, meaning it is highly important to seek support at the right times to enable educated decision making.

Mr Rosser – who worked directly alongside Sir Richard Branson at Virgin – said he believed passionately that if more entrepreneurs had focused on the key issues and received the necessary guidance, many of their failed businesses would still be operating today.

He suggested that business owners require skills, confidence and motivation to succeed, but external help can also prove to be a vital ingredient.

Todd Rammler, president of outsourcer Michigan CFO Associates, recently claimed that claimed 99 per cent of firms have no written plan for growth to guide their decision making.

He suggested that owners need information and specific skills on business planning and analysis, meaning outside help can sometimes be of benefit.

Home entrepreneurship an option for mothers

Wed, 09 Sep 2009 13:52:09 GMT

Being self-employed is the perfect way to combine family life with bringing a second income into the home, one enterprise leader has claimed.

According to Jane Hopkins, founder of MumsClub – the organisation behind the upcoming Business Mum Week – women with families are increasingly looking to earn income in a different way.

With so many reports of redundancies and the future potential for job losses, it has never been a more important time for families to have working options, she stated.

She commented: "Women now have the freedom to get paid to do something they love. Great for household finances, great for self esteem, great for the work-life balance, starting up from home is low cost, low risk, and from a personal point of view, incredibly rewarding."

Business Mum Week, which is dedicated to female business owners who balance entrepreneurship with running a family, will run between October 3rd and 10th.

The aims of the initiative are to inspire more mothers to start a business from home, encourage enterprise growth by providing access to information and ideas, and to develop online and offline support through a national network of home-working individuals.

The inaugural Mumpreneur Annual Conference, to be staged in Birmingham, will launch the event, with a number of experts in various fields lined up to address the audience.

An everywoman spokesperson recently told Fresh Business Thinking that firms which offer flexible working options are more likely to attract talented female professionals.

Small firms urged to embrace unified communications

Tue, 08 Sep 2009 11:27:08 GMT

Small businesses seeking to reduce costs while investing in their technology infrastructure should consider adopting unified communications, it has been suggested.

According to Chris de Silva, managing director of NEC Philips Unified Solutions, almost every firm is feeling the pressure of the current climate, heightening the need for firms to optimise resources.

"In these difficult trading conditions, businesses need to be more flexible in their approach and they need to be prepared to make changes to working practices and business processes if they are to ride out the storm," he told the Telegraph.

Mr de Silva said that by having access to unified communications technology, employees benefit from freedom of movement around their working environment while still being able to access all of their applications in the same way.

"There is no longer any reason for staff to be tied to one desk or location in the building which means companies can make better use of the office space they have already got," he stated.

North Bristol NHS Trust recently revealed how it is using unified communications to overhaul its telecommunications services and modernise the patient offering.

Martin Bell, director of information management and technology at the trust, said the new solution would allow it to provide mobile and responsive communications, both internally and to the community at large.

Smarter working needed to raise productivity

Tue, 08 Sep 2009 11:25:08 GMT

Small business owners do not necessarily need to work harder to maximise productivity, but they need to work smarter, it has been claimed.

Writing for the Newcastle Journal, Tedco business support manager Carole White urged businesspeople to recognise the distinction between activity and achievement, noting that the former does not necessarily guarantee the latter.

She suggested that all owners need to develop effective time management systems in order to make better use of the working day.

Ms White commented: "If you could find an extra five per cent of your time by better planning and organisation, or by cutting down on lunch or extra breaks, this could be an extra 20 minutes of your day.

"Spend this time purely communicating with your customers and you could increase your sales figures by a third."

She encouraged business owners to form a 'to do' list of priorities every night before the end of work, including deadlines and other markers to chart progress during the next day.

Her comments echoed those of Purely Peppermint owner Rachael Ross, who recently called on home business founders to create time diaries.

She said these could help make positive changes to the working calendar, leading to greater accomplishments.

Report warns of gender pay disparity in finance sector

Tue, 08 Sep 2009 11:25:08 GMT

Female professionals working in the financial sector are continuing to suffer from an exaggerated gender pay gap when it comes to bonuses, according to a new report.

The Equality and Human Rights Commission (EHRC) has discovered that most women starting new jobs in finance companies begin on lower salaries than men, while the amount they earn in performance-related pay is up to 80 per cent lower than their male counterparts.

Women earn an average of £2,875 in annual bonuses compared to £14,554 for men, an EHRC inquiry found, taking the salary-only pay gap of 39 per cent up to a staggering 47 per cent.

Trevor Philips, chairman of the EHRC, described the figures as "shocking" and called for action to be taken.

He said: "By bringing down arbitrary barriers, and changing practices that, intentionally or not, inhibit women's success, financial firms have the chance to boost morale, bring on new talent, and maximise the potential of their existing employees."

According to SME Web, Business Link saw the number of female professionals contacting the service for small business advice during 2007-08 double on the previous year – potentially a sign that more talented businesswomen are channelling their abilities into entrepreneurship.

Firms urged to consider flexible working to cut costs

Mon, 07 Sep 2009 11:38:07 GMT

Firms struggling to meet all of their financial commitments can attempt to negotiate with employees over their working conditions, it has been suggested.

Robert Janes, chair of judges for The National Business Awards, said businesses can take number of steps to be more flexible and change their working practices in order to avoid redundancies.

He stated: "It's about looking where there are opportunities to reduce the hours in agreement with the staff, possibly a reduction or extensions of holidays.

"Certainly there have been examples of companies extending long holidays - Vauxhall did it at Christmas time and jobs were saved; flexibility that fits in with the work force."

Mr Janes said it was best for firms to present a realistic view of where the company is going, in order to remove certain fears held by staff and raise overall employee morale.

"It is important for businesses to impress a policy of openness," he stated.

According to research conducted by the Confederation of British Industry and recruitment firm Harvey Nash, almost two thirds of employers have made or are considering making significant changes to the way they organise their workforce and working patterns.

Some 45 per cent have increased flexible working among staff to reduce hours and meet employee requests for a work-life balance.

Small firms should make employees stakeholders

Mon, 07 Sep 2009 11:37:07 GMT

Businesses must communicate with staff in order to help them face the challenges created by the recession, it has been claimed.

According to Robert Janes, the chair of judges at the National Business Awards, businesses should be open with their employees so that they become stakeholders in the company.

He was commenting after Orange reported that seven in ten British workers say they are proud of the firms they work for.

The firm's research also showed that 66 per cent of workers who work for companies with between one and nine workers say that they are prepared to be flexible in order to aid their company's success during the current economic downtime

This compares to 38 per cent of workers who work for companies with over 1,000 employees.

Mr Janes stated: "Clearly the worrying state of the economy is no secret to anyone, everyone knows about it and fear is a dangerous thing so if business leaders can remove fear it must result in a happier and more productive work force.

"If someone has a stake in the future of the company they need to know what the challenges are and hopefully how to beat them."

CIPD warns firms to plan for swine flu

Mon, 07 Sep 2009 11:36:07 GMT

Companies can take a number of precautions to ensure they are able to manage a second swine flu outbreak, it has been suggested.

Ben Willmott, senior public policy adviser at the Chartered Institute of Personnel and Development (CIPD) said firms need to assess the activities they need to ensure the business can operate.

He urged firms to explore the opportunities home working in order to isolate staff from potential infection.

"If you can keep more of your staff working from home so that they don't have to commute, then hopefully they are less likely to contract the virus and less likely to spread it on themselves."

Mr Willmott also said firms need to look at customer issues to see if they can maximise customer self-service options.

"Can you increase online and telephone transactions? Retailers increasingly have self service pay points; can you look to increasing those sort of [options] so that customer service can continue?" he added.

Finally, he suggested that suppliers may also experience problems with swine flu, so it may be prudent to identify alternative partners, while stockpiling may also be prudent.

"It's those sorts of issues which having a business continuity plan will cover, so that employers are able to minimise disruption as much as possible," Mr Willmott said.

Last week, CIPD warned firms to prepare for staff absence rates of up to 50 per cent for periods of between two and four weeks this autumn and winter.

Business leader encourages female entrepreneurship in NI

Fri, 04 Sep 2009 15:18:04 GMT

More women in Northern Ireland should take the bull by the horns and start a business enterprise, it has been suggested.

According to Roseann Kelly from networking group Women in Business, female professionals often lack the confidence to act upon their innovative ideas.

Speaking to the Belfast Telegraph, she stated: "Entrepreneurship is often inhibited, particularly among women, by fear of failure and lack of financial or emotional back-up to allow the individual to take the plunge."

She encouraged potential business owners to sign up for Invest Northern Ireland's new Propel programme, which is designed to cultivate and grow new companies across the nation.

Ms Kelly said the initiative could play an important role in helping women to get their start-ups off the ground, enabling them to challenge the male domination in the small business sector.

"We would urge local women to apply to Propel now or come along to our conference in Belfast's Ramada Hotel on September 10th and learn more about it," she added.

The British Association of Women Entrepreneurs recently claimed that by starting a small business, female professionals can help juggle work responsibilities with raising a family.

Childcare costs can prove to be a huge burden for women in business, the body's president Tatjana Hine claimed.

Economist predicts slow economic recovery

Fri, 04 Sep 2009 15:17:04 GMT

Although the UK will probably emerge from recession during quarter three, there may be no return to boom conditions for many years, it has been claimed.

Defaqto economist Michael Baxter said recent talk of green shoots has been over exaggerated, suggesting that people have let some of the recent good news over the economy "run away with itself".

He said that the stock market has done "very well" over the last few months, but noted that it is notoriously unpredictable over the summer, from May right through to August.

Mr Baxter added: "It is probably safe to say that the recession has come to an end but if you think the cause of the recession is deeper than [the banking crisis] - it is to do with people getting into too much debt and it is to do with credit and balances then it is very difficult to see how those problems have been fixed."

The contraction in the economy has been so severe that it would have to be "awful" to continue shrinking, he stated, however extensive growth is unlikely in the near future.

According to forecasts from the Organisation for Economic Co-operation and Development, economic growth across the G7 countries will fall by 3.7 per cent this year - a less brutal contraction than the 4.1 per cent drop projected in June 2009.

Hackers targeting IT system password risks

Fri, 04 Sep 2009 15:16:04 GMT

Small business owners should not rest on their laurels even when their IT systems are password-protected, it has been suggested.

According to Simon Heron, internet security analyst at Network Box, obscure passwords for web-based services can be stolen just as easily as more obvious ones.

He said that the combination of phishing, trojans and keyloggers, as well as hackers gaining access to user databases, means that even where files are protected they can still be stolen.

"You may have a keylogger feeding it straight back to the hacker or you might be a victim of a phishing attack," he suggested.

"The other thing we've got to look at is the fact that the actual databases of usernames and passwords keep going astray."

Mr Heron described such lists as "a treasure trove" for hackers, highlighting the concerns in this area.

According to research published by software company PC Tools, many web surfers are not familiar with new and unknown threats on social networking sites, instant messaging services and other online communication and networking tools.

Up to 74 per cent of consumers are not aware of the need for behavioural-based protection, the study indicated.

Study demonstrates UK SME confidence

Thu, 03 Sep 2009 16:16:03 GMT

The majority of the UK's small and medium-sized enterprises (SMEs) are bullish about their survival prospects despite the recession, new research has indicated.

According to a study conducted by specialist business insurer Hiscox, 54 per cent of company owners believe they will survive the downturn.

Just 52 per cent of firms have taken additional measures to ride out the downturn, with only 12 per cent having cut staff salaries and 13 per cent ceased bonus payments.

Most pertinently, 91 per cent of SMEs have maintained their staff headcount during the recession and 95 per cent have kept up with insurance payments.

Alan Thomas, small business insurance expert at Hiscox UK, said: "SMEs are an integral part of the UK's business landscape and an important indicator of the health of the national economy, so it's good to see that many are so confident about their survival prospects and have avoided some of the more difficult measures such as salary cuts and redundancies."

He said it was also reassuring that a large percentage are also choosing to maintain their levels of insurance cover, especially since an increase in professional liability claims is "something that always comes hand in hand with a recession".

Last week, research conducted by Barclays indicates that almost half of all SMEs intend to grow this year.

FSB chief calls for prompt payment for small firms

Thu, 03 Sep 2009 16:13:03 GMT

Small businesses could benefit greatly from receiving payment for goods and services in a timely fashion, it has been claimed.

John Wright, national chairman of the Federation of Small Businesses (FSB), said poor payment practices in both the public and private sector can drastically affect cash-flow for small firms.

This is especially the case at a time when business owners are doing their best to hold on to precious funds, he suggested.

Mr Wright said larger organisations must be given a loud and clear message that they must stop using the recession as an excuse to use small firms as source of credit.

He added: "The FSB would like to see as many private and public sector organisations as possible signed up to the Prompt Payment Code to ensure we can put an end to this plague and change the culture of late payments for good."

Earlier this year, Phil Orford, chief executive of the Forum of Private Business, claimed late payment was heightening the risk of closure for many small businesses.

"For too long, smaller firms have been squeezed so their bigger customers can create lines of credit," he stated.

Business hub potential for post offices

Thu, 03 Sep 2009 16:12:03 GMT

Post offices around the UK should be transformed into small business hubs to safeguard their future, it has been suggested.

According to the Federation of Small Businesses (FSB), 47 per cent of small firms use post office services at least twice a week, meaning there is already great potential for them to offer a wider range of services to local enterprises.

By becoming business hubs – offering advice on banking, government services, insurance and parking delivery, advertising facilities, Business Link advisors and meeting rooms – the FSB says the government can ensure the network is financially sustainable for years to come.

It says the Post Office is not just a place for small firms to send and receive mail, but is also somewhere to meet other business owners and potential customers.

John Wright, national chairman of the FSB, said companies are not currently being given a fully operational service and are severely let down by the current structure.

He added: "The government has committed to the importance of sustaining local communities and must now step up and support the Post Office to become a small business hub.

"The sooner this happens, the sooner the Post Office can become financially viable in its own right and small firms will be able to access the service that they deserve."

The FSB exists to promote the interests of the self-employed and all those who run their own business in the UK.

Home business owners can work with friends and family

Wed, 02 Sep 2009 12:13:02 GMT

Home business owners have the option of enlisting friends and family to help them build up their enterprise, it has been reported.

According to author and small business advisor Cesar Campos, there is a greater chance the business owners will get along with their colleagues if they have grown up with them and know them well.

Decision making can benefit from close business relationships, especially when it is necessary to work out growth strategies, he suggested.

"Having a friend or family member close by allows you to take advantage of an instant network," Mr Campos added.

"This can also be very important when you have to get the word out on your products and services and take your marketing machine out for a spin."

Mr Campos said it is necessary to have a degree of patience when working with friends and family, especially when spending large amounts of time together in a business environment, but there can be benefits for those who get the balance right.

Last week, Rachael Ross of Purely Peppermint claimed good time management is essential for any small business owner working from home.

Recession provides impetus for new small businesses

Wed, 02 Sep 2009 12:12:02 GMT

Many of the risks involved in leaving full-time permanent employment to start a new business have been mitigated by the recession, according to one expert.

James Caan, a panel member of BBC2's Dragon's Den, said that while many people may have been afraid to become self-employed while job security was high, the downturn has changed their perspective.

"With their employer offering little to no job security, employees often think they might as well go for it. Recessions offer a pro-risk taking environment," the recruitment expert stated.

He added that the loyalty workers feel for their employers also tends to wane during difficult periods, with many believing they should be proactive rather than risk being made redundant further down the line.

Mr Caan suggested that with profits hitting rock bottom, people feel less guilt about leaving their current company.

He added: "When times are good and money keeps rolling into an employee's bank account, they don't take the time to think about the future. In fact, they tend not to think about their current situation at all. A recession is jarring and it forces people to reconsider their business situation."

According to Monster.co.uk latest study, 15 per cent of UK workers are considering starting their own business as a direct result of the recession.

Concerns raised over effect of tax regime on UK business

Wed, 02 Sep 2009 12:10:02 GMT

The government should take steps to prevent the UK's "punitive" tax systems discouraging innovation within the small business sector, it has been claimed.

Speaking to the Telegraph, Nigel May, tax principal at MacIntyre Hudson, said the high taxes facing businesses in the UK could prompt many firms to set up elsewhere, affecting economic recovery prospects.

He was commenting after a survey conducted by the accounting firm highlighted that almost three-quarters of companies believe Britain has become a less attractive place to conduct business in recent years.

Mr May said the message from business is clear, that what was once "a celebrated, competitive tax and regulatory regime" has become "increasingly burdensome", particularly for entrepreneurs.

"The government's optimistic forecasts for recovery are based on the assumption that Britain's entrepreneurs will continue to innovate, build, work and take risk as they have before," he added.

"What the Chancellor may have overlooked is that these essential activities for future growth rely on the very people his so-called 'targeted' tax rises hit the hardest."

According to MacIntyre Hudson, a fifth of UK-based entrepreneurs say they would no longer choose to start a business in the UK.

Data quality essential for small firms

Tue, 01 Sep 2009 11:49:01 GMT

Businesses and other organisations must change their working practices to ensure lasting data quality and enterprise content management (ECM), the International Association for Information and Data Quality (IAIDQ) has said.

Organisations are aware of the benefits of ECM, but the number of compromises it is likely they will have to make to implement it can put them off, information technology research and advisory company Gartner claimed last week.

Commenting on this suggestion, Daragh O Brien, director of publicity at IAIDQ, the not-for-profit professional society for improving information and data quality, said: "The goal should be to embed a quality approach to the management of information that is not a project but the way things get done."

He explained that looking at information quality and management as "just another project or phase in a project" is "horribly short-sighted".

Mr O Brien stated: "Information quality is about more than just cleaning duff data on a project by project or system by system basis.

"Truly sustainable information quality programs tackle the 'softer' issues in the organisation, such as culture, processes and politics, to fundamentally change the way the company looks at its key corporate asset."

Pitney Bowes Business Insight recently claimed that while the issue of business data quality has been prevalent for decades, companies still find it a major challenge to maintain accurate information and quantify the true business cost of poor quality.

Mobile offers broadband alternative for small firms

Tue, 01 Sep 2009 11:47:01 GMT

Mobile broadband users can view the service as their main means of gaining access to the internet rather than as an add-on to a fixed-line connection, it has been claimed.

According to Jon Ingram, operations director at BroadbandChoices.co.uk, the majority of businesses and individuals consumers still tend to seek the latter from internet service providers.

He proposed that of the 12 per cent of homes that have mobile broadband, three quarters also have standard fixed line broadband service as well.

However, Mr Ingram said mobile broadband can quite often be an 'instead of' purchase rather than an additional selection, as this can provide greater flexibility the whole of the time.

Commenting on mobile, he stated: "It's getting better – the reliability is certainly getting better and the 3G coverage, if you look at the various operators, is improving a lot, but the speed that you're likely to get from a standard mobile broadband services...in terms of performance it is not a direct replacement."

Nearly three-quarters of people with broadband at home say they could not live without it, according to a recent report from the Communications Consumer Panel.

Some 84 per cent of the 2,000 adults surveyed agreed it should be possible to have broadband access at home, regardless of where people live.

Data sharing raising IT security risks

Tue, 01 Sep 2009 11:45:01 GMT

The security of confidential business information can be unintentionally threatened by employees and other associates sharing sensitive material via email and social media, it has been claimed.

According to Nicki Wallace, global solutions marketing manager at business security solutions company RSA, accidental security incidents happen more frequently and can have a more negative impact than malicious insider attacks.

She said social networking websites such as Facebook are "a huge problem" for organisations looking to protect their data from accidental security risks, while large amounts of confidential information is lost when sent in emails.

Ms Wallace explained that social network users in the workplace are sometimes "sharing corporate information that they're probably not even thinking about" and that media losses through email are inevitable unless encryption controls are put in place.

"Unless you've got controls on email being sent with sensitive information and making sure they're encrypted, we're finding that a lot of customers are losing intellectual property, customer information, financial information through the email mechanism," she added.

AVG Technologies recently reported that despite the social networking community having serious concerns about the overall security of public spaces, few are taking the most basic of steps to protect themselves against online crimes.

Health and safety compliance distracting many firms

Tue, 01 Sep 2009 11:44:01 GMT

Up to three in five small and medium-sized businesses do not have an environmental policy in place, it has been reported.

According to a study conducted by the Forum of Private Business, issues such as health and safety compliance and skills development are more immediate concerns to firms than waste reduction and reducing energy use.

Indeed, 42 per cent of interviewees disagreed with increasing legislation in order ensure environmental improvement.

Commenting on the report, Harry Katz, principle of Norwest Consultants, said the lukewarm reaction did not necessarily reflect ambivalence towards environmental issues.

He suggested that government regulation of health and safety meant employers had to spend a disproportionate amount of time and resources dealing with the issue when it could be spent on cutting waste.

Mr Katz added: "Health and safety in my opinion has grown from being ensuring that companies provide a safe environment for their workers to mollycoddling and creating a compensation culture and needs a full overhaul.

"Companies are having to spend far too much time and money insuring themselves against imaginary risks rather than focusing on growing their businesses."

Business potential for mobile cloud systems

Fri, 28 Aug 2009 12:18:28 GMT

Mobile cloud systems will have benefits for UK businesses, it has been suggested.

Windsor Holden, principal analyst at Juniper Research, said the technology, which allows users to run applications on 'non-smart' phones, is principally aimed at emerging markets but could have a more widespread appeal.

He said: "In the first instance, the opportunity would probably be on the corporate side, simply because you look at the disparity between the kind of markets that we're dealing with, in the UK there is a significantly higher proportion of smartphones."

Mr Holden claimed that given the relative paucity of fixed internet connections, there is "a substantial opportunity" for applications like this to come in and greatly facilitate mass usage of applications rather than of internet.

"Given that applications will become more complex and probably more sizeable as time goes on, it really depends on whether the handsets can keep pace with the required processing power," he added.

According to Mobile Cloud Computing, a report published by ABI Research in July, the use of mobile cloud systems could eclipse the current mobile application model by 2014, delivering revenue of nearly £12.3 billion annually by the end of that year.

Recession creates new business opportunities

Fri, 28 Aug 2009 12:16:28 GMT

Now is as good a time as any to start a new business, it has been claimed.

A spokesperson for workplace solutions firm Regus claimed there are many opportunities for enterprises during a recession, especially for people who have been made unemployed and received redundancy money.

"If you've received compensation, you think you've got a great business idea, then why not," he suggested.

"There have been a number of reports over the years that show that start-ups increase in times of recession and we are seeing the results of that," he noted.

The spokesperson claimed that many very successful entrepreneurs started off in difficult times or under difficult circumstances and "took the leap into the unknown".

He said that while nobody should be too hasty in starting a new business because there are a great many issues that need to be taken into consideration, opportunities are there for confident individuals with a sound strategy.

According to figures released by Barclays in March, the number of new businesses remained at high levels in 2008, rising from 432,300 in 2007 to 436,600 the next year despite the onset of recession.

Female-only start-ups increased by nine per cent to more than 90,000 in 2008 compared to 83,000 in 2007.

Cameron proposes scheme to help small firms access public work

Thu, 27 Aug 2009 11:43:27 GMT

The government should introduce a passport system to help small businesses access valuable government contracts, according to the leader of the opposition.

Speaking on a visit to Northwich in Cheshire, David Cameron said too much public work is contracted to preferred suppliers – which tend to be large companies – with little opportunity for small firms to compete.

He claimed that small firms "have to jump through too many hoops" at the moment to be considered, something a passport system could change as it would identify firms which have been approved as being capable of handling public contracts.

"Awarding bodies need to have more of an entrepreneurial feel. This requires a cultural change that comes from leadership, comes from talking about these things and understanding them, rather than just passing a law," Mr Cameron said.

Fast tracking applications from eligible bidders would help to open up public contracts to many of the UK's 4.7 million small firms, he proposed.

Last November, Clive Davenport, trade and industry chairman at the Federation of Small Businesses, claimed that such companies offer "great value" to communities.

He claimed that by granting contracts to small firms, the government can enable money to be kept within the local economy.

Time management vital for home business owners

Thu, 27 Aug 2009 11:41:27 GMT

Good time management is essential for any small business owner working from home, it has been suggested.

According to Rachael Ross of Purely Peppermint, individuals who create a time diary can start making positive changes to their day and accomplish more.

She urged business owners to understand that they must manage their own working time, rather than let it manage them.

Creating a 'to do' list and identifying clear goals is essential, she said, while creating routines for the completion of regular tasks can also increase efficiency.

Mr Ross said owners should establish and adhere to regular working hours to maintain enthusiasm, achieve a work/life balance and avoid burn-out.

They should also take regular breaks during the day in order to remain as productive as possible, she added, something that requires individual discipline given that there is no manager looking over them.

Deborah Maroney, chief executive of the DeMar Group, recently claimed that the faltering economy may have provided the perfect opportunity for budding entrepreneurs to start home-based businesses.

She said widespread internet access had opened up the world of business to new entrants, with web-based enterprises possible to establish from home with few start-up costs.

High speed broadband needed to support small firms

Thu, 27 Aug 2009 11:39:27 GMT

Small businesses need fibre optic broadband access if they are to compete in the economy, one expert has suggested.

Mark Seemann, product strategy and development director at Outsourcery, told Computer Weekly that the UK's copper line network needs to be replaced to support the increased demands from the business sector.

Many small firms continue to find their ambitions "severely hampered" by an inability to access high-speed, low contention broadband, he stated, making it difficult for them to compete in a difficult economic climate.

He proposed that plans to rollout universal broadband with speeds of up to 2Mbps fail to go "anywhere near far enough" to meet the needs of firms.

Mr Seemann stated: "If the underlying infrastructure was changed to fibre optic, the speeds today could be 100Mbps per customer rising to 1Gb.

"This would permit the most advanced business applications, such as high definition video conferencing and streaming complex software over the internet."

Edd Dawson, editor of Broadband.co.uk, recently claimed that greater numbers of companies are looking to aggregate services through their fibre or broadband connection because it allows more flexibility.

He said businesses could rely on client services for email and software applications, reducing the need to have an entire IT structure in a single base.

SMEs set to grow over next 12 months

Wed, 26 Aug 2009 11:49:26 GMT

Up to half of all small and medium-sized enterprises (SMEs) are set to expand over the coming 12 months, it has been reported.

Research conducted by Barclays also found that an additional third are planning to consolidate operations, indicating that owners are anticipating an improvement in economic conditions.

The retail sector recorded the highest percentage of businesses planning to expand, with 54 per cent of companies aiming to grow compared to 46 per cent in the trade sector.

Steve Cooper, managing director of Barclays Local Business, said a large number of SMEs were poised to expand when the time is right, perhaps taking advantage of any upturn in the economy.

He added: "Any decisions to expand should be carefully considered, but there are good reasons to expand.

"Companies with growth plans could be taking advantage of a completely different competitive landscape, where key competitors are missing or have downsized."

Mr Cooper said Barclays was continuing to offer credit to commercially viable SMEs with a solid growth strategy.

Business Link's latest Diverse Business Confidence Index indicated that many of London's SMEs are still looking to grow despite the recession.

Firm notes benefits of flexible working for women

Wed, 26 Aug 2009 11:48:26 GMT

Leading training, resources and support provider everywoman says that by fully embracing flexible working, it has managed to attract talented professionals who otherwise may not have chosen to join the company.

According to Fresh Business Thinking, being able to offer flexible working has made the firm appealing to women in particular, who may have family or other important commitments they wish to balance with work.

Without the ability to work from home, such individuals would not be willing to commute into the City every day to work in the office, an everywoman spokesperson claimed.

She added: "Since these team members are also key sales and client relationship managers, they often travel to see existing and prospective clients located across the country.

"Our flexible workforce is in touch by email and phone when they are on the road, and as a result we have succeeded in maintaining productivity."

The advent of mobile technology has made it possible to limit costs by allowing all staff members to work from home as they choose, the spokesperson claimed.

She said that with expectations high in terms of the skills and abilities of employees, it is unreasonable to think the best person for the job will live within an easy commute of London.

Last week, Pat McDonald, president of the CBI Business Group, claimed that female professionals tend to be better salespeople than their male counterparts because they bring an element of emotion to corporate dealings.

Sales training urged as recession continues

Wed, 26 Aug 2009 11:47:26 GMT

Small businesses should be looking to improve their employee sales training in order to make sure they do not miss out on valuable revenue as the recession ensues, it has been claimed.

According to Newsday.com, if sales are down, employers should be looking to improve the skills of their staff through training and development sessions.

Now is the perfect time to be working with sellers on perfecting their pitch and helping them become better equipped to deal with the challenges ahead, the site said.

Such comments were echoed by Sandler Training president Richard Isaac, who said: "Owners and managers' primary job right now should be to find a way to keep their sales team out of a negative pattern and help them find the silver lining in this supposed dark cloud."

He added that regular sales training meetings can help to improve the morale and productivity of staff by discussing tactics and sharing positive information.

"You have to continually remind your sales people that there are still people buying," he commented.

Last month, Maria Ross, founder of the marketing firm Red Slice, claimed small businesses must brand themselves effectively if they are to succeed in a competitive market.

Firms urged to focus on service to sustain prices

Wed, 26 Aug 2009 11:46:26 GMT

Despite the ongoing recession, small businesses should avoid the temptation to cut prices in an attempt to compete with their rivals, it has been suggested.

Matthew Perkins, an advisor at the government's Business Link service, said the cost of products and services offered should not be reduced without serious consideration.

He said that while discount and special consumer offers may be the only option for some firms, this should generally be treated as a last resort since profit margins are automatically slashed.

Mr Perkins stated: "As a general rule what we say is to try and differentiate your service and give added value, so you can keep the prices up.

"Rather than cutting prices, maybe try and offer an extra service to the end client, rather than just cutting the cost of the standard service."

Some 32 per cent of business and professional service providers interviewed for the latest Confederation of British Industry report said they had cut their prices, while 23 per cent of firms offering consumer services said they had been forced into making reductions.

The latest Market Purchasing Managers' Index indicated that service activity grew at the fastest pace since February 2008 during the last quarter, but downward pressure on profits was being compounded by deflation in the sector.

Training staff can provide SME flexibility

Wed, 26 Aug 2009 11:45:26 GMT

Small and medium-sized businesses (SMEs) should attempt to upskill their staff where possible as the recession ensues, it has been claimed.

According to Business Link advisor Matthew Perkins, not only is staff retention crucial as the economy moves towards a return to growth, but maximising the value of employees is equally important.

He claimed that by training workers, they could take on more diverse duties within the business, potentially adding value and increasing productivity.

Mr Perkins stated: "We tell [SME owners] to try and look if there are other areas of the business the staff can work in, even if it's on a short term basis, so you are able to utilise their skills, rather than looking on a departmental basis and thinking that you have too many people in one particular job.

"You don't need to look at it on a long-term basis, because some businesses are projected to come out of the recession by early 2010, so we are looking on a six month projection with that."

Last month, the MacLeod Review of employee engagement called for greater cooperation and collaboration within UK businesses as they bid to drive revenue.

The independent review urged SME bosses to make sure that the relationship between employers and employees is at the centre of successful business plans.

Dragon calls for entrepreneur tax breaks to encourage innovation

Tue, 25 Aug 2009 14:29:25 GMT

A two-year tax holiday for entrepreneurs could help small business owners contribute to the rebuilding of the UK economy, according to one high profile business figure.

Recruitment expert James Caan, a panel member of BBC2's Dragon's Den, claimed it can be difficult for start-up owners to both invest in their companies and make enough money to live off during the early stages of development.

With every penny counting, he wants the government to offer the incentive of initial tax breaks to make enterprise a more appealing prospect for the UK's brightest and boldest.

Speaking to the Telegraph, Mr Caan stated: "I see entrepreneurs raise £100,000 and then half of that is eaten up with tax.

"Tax can make the difference between someone deciding to start a business and them deciding not to."

He said that by suspending income tax, national insurance and business rates, ministers could help fledgling entrepreneurs through this crucial early period.

"You can't argue that these tax breaks would be a problem for the Treasury, as you're encouraging people who otherwise might not have taken the step to become entrepreneurs," Mr Caan added.

According to uSwitchforBusiness.com, an increase in redundancies during the recession could lead to the emergence of many new companies in the UK.

Small firms may be more able to retain IT staff for future growth

Tue, 25 Aug 2009 14:27:25 GMT

Small businesses should be able to keep hold of their most talented IT staff as the recession ensues, it has been claimed.

Gerry McLaughlin of IT Contractor.com, noted that in the majority of cases, small firms do not have the same pressure from external shareholders to reduce costs as their larger rivals, as very often the owners of the firm are also the main decision makers.

As a result, they can look at the bigger picture, realising that by avoiding cost cutting in the short-term, the bottom line may well benefit in the near future, he suggested.

Mr McLaughlin claimed that small firms are often best for job security, not only because they are free from the pressure of stock market quotes but because they generally have less exposure to the sectors most affected by the recession such as banking and insurance.

In addition, the very nature of small businesses means that outsourcing IT is less likely to be a viable option, he noted.

Larger rivals may attempt to save money by moving such operations – often large-scale – offshore to countries such as India, but he said small firms are unlikely to derive sufficient benefit from breaking up their own mini IT teams.

ComputerWeekly.com recently reported that many small firms are planning to cut IT budgets by four per cent, but staffing levels will be largely safe during the recession.

Firms urged to protect IT systems

Tue, 25 Aug 2009 14:25:25 GMT

Small business owners should regularly update their computer software to prevent against hacker attacks, it has been suggested.

According to Graham Cluley, senior technology consultant for Sophos, there are over 22,500,000 examples of malware in existence with 40,000 new versions appearing every day.

He said firms must at the very least have current antivirus software, as otherwise they may be leaving themselves open to attack.

"You need an up to date antivirus, and I don't mean updating it every week or every day – your antivirus should be silently in the background, updating itself every hour," Mr Cluley stated.

He added that firms also need to firewall protect their internet browsers and keep them up to date with security patches as they are released.

Mr Cluley said security updates were constantly being released to tackle new threats as they emerge and it is up to the individual user to take advantage of these for their own benefit.

New research conducted by PandaLabs indicated that the number of computers infected by programs designed to steal confidential, personal, or banking details has risen by 600 per cent during 2009.

FSB cheer over retention of growth tax break

Mon, 24 Aug 2009 13:27:24 GMT

The UK government has secured the long term future of a key tax break for small businesses, designed to help high-growth companies recruit and retain highly skilled employees.

Such firms will benefit after the European Commission backed the Enterprise Management Incentives which provide tax breaks on employee share options.

The development that has been welcomed by the Federation of Small Businesses (FSB), with EU and international affairs department chairman Tina Sommers claiming it will aid small firms grow and attract "a good calibre of people" into their fast growing firms.

She stated: "[Firms] will be able to offer shares to new and existing employees instead of high salary packages. This will help growth, future employment and potentially increase government yield in the long term."

However, Ms Sommers added that the scheme should be opened up to businesses not offering share options to their employees.

The latest British Chambers of Commerce Monthly Business Survey, published this week, indicates that there are continued threats to the UK employment market, with half of all firms considering or certain to make redundancies over the next six months.

None of the businesses surveyed said they planned to increase stock holdings, with 83 per cent maintaining current levels and 17 per cent reducing stock over the next three months.

Commentator says Wi-Fi is the future

Mon, 24 Aug 2009 13:25:24 GMT

Small businesses should consider investing in wireless technology, because it is set to offer increased mobile working opportunities in the future, it has been suggested.

John Dunn, editor of IT resource site Techworld, said the technology took off around five years ago as speeds improved and prices fell.

He claimed wireless is "a winner" not only because it is mature and cheap to use, but also because it is now used by PCs across the globe.

Mr Dunn commented: "It has transformed the home networking market.

"Wi-Fi does have some drawbacks, such as power drain and a short range, which is why the next generation of wireless system will be something along the lines of Wimax, which can transmit data over long range.

However, he suggested that the technology will continue to make life easier for businesses and consumers by providing ready internet access regardless of location.

This belief is backed up by a study conducted by ABI Research, which has predicted that one billion Wi-Fi chipsets are to be shipped in 2011 alone.

By the end of the following year a cumulative five billion such chipsets will have shipped since the firm began tracking the technology in 2000, a report stated.

Small business opportunities for bright jobseekers

Mon, 24 Aug 2009 13:22:24 GMT

Young people should attempt to be creative in order to take advantage of the opportunities brought about by the recession, it has been suggested.

Steve Huxham, chairman of the Recruitment Society, said it may be an idea for jobseekers to present themselves to employers as being entrepreneurial, as this may encourage them to hire.

He suggested that by demonstrating the possession of business ideas, however undeveloped they may be, firms may be encouraged to take on younger employees as an investment for the future.

Mr Huxham claimed jobseekers should be "casting the net further" as they search for work, rather than simply looking to the large employers for opportunities that may arise.

"If you live in a particular area and you're looking to work, there are an awful lot of small and medium-sized enterprises who might not otherwise have thought about taking young people on, whether it be for placements, apprenticeships, training positions, whatever," he suggested.

In his Budget 2009, Chancellor Alistair Darling set aside an additional £1.7 billion for the Department for Work and Pensions to sustain the high numbers of individuals currently moving off Jobseeker's Allowance in the early months of each claim and the minority who remain unemployed for longer periods.

Women have many opportunities in business

Fri, 21 Aug 2009 15:24:21 GMT

Women in business have certain advantages over their male counterparts, it has been suggested.

According to Pat McDonald, president of the CBI Business Group, female professionals tend to be the best salespeople because they bring an element of emotion to corporate dealings, which tends to be appreciated by clients and customers.

She stated: "Selling a business is like giving birth to a baby and then putting it up for adoption to the right new parents.

"Female business owners feel we can relate to them better than the males do, at times."

Sandra Dohn, an associate member of MetroBrokers Real Estate, echoed the comments, claiming that the current climate is the ideal time for women to get involved in business.

The recession has created gaps in the market that self-employed women and female-led enterprises are well-positioned to exploit, she suggested.

Research conducted by Vodafone recently suggested that this is indeed the case, suggesting that six per cent of women feel they have learned many new skills during the recession compared with only 2.5 per cent of men.

The communications firm claimed women seemed to be adapting to the changing business demands of the recession most willingly.

Going green has financial benefits

Fri, 21 Aug 2009 13:00:21 GMT

More small businesses in the UK are improving their energy efficiency, recognising that this can save them money, a survey has shown.

Research conducted by NetRegs.gov.uk shows that more than half of small businesses are taking steps to reducing the damage they do to the environment, however only one in five plan to spend on improvements next year.

Commenting on the study, Paul Elliott, business support adviser for Business Link, claimed that many small businesses were focused on environmental management but had been put off course by the recession.

"At a practical level for existing and start-up businesses it is common sense to adopt green polices because in a lot of cases they help cut back on waste and allow you to make better use of resources and utilities," he said.

He suggested that although upfront cost has often been an issue in making a business more efficient, small firms can actually save money by embracing such initiatives.

Mr Elliott noted: "If we think back a few years people thought of going green as being much more of an imposition in terms of regulations and costs to the business, but really you could substitute the term green initiatives with resource efficient initiatives."

According to NetRegs.gov.uk, 84 per cent of firms are now recycling their waste, up from 66 per cent in 2007.

Technology facilitating widespread home working

Fri, 21 Aug 2009 12:59:21 GMT

The development of web technology means home working is no longer the complicated business of years gone by, it has been claimed.

According to Fresh Business Thinking, virtualisation technology allows home-based workers and office staff to operate as though they are all in the same room, meaning they can communicate and collaborate effectively irrespective of location.

The site claims that home working also creates many opportunities for establishing and growing businesses from scratch, as commercial property rental costs can be saved by allowing employees to avoid the commute into work.

In addition, it states: "Home working can help cut the amount of office space required by companies resulting in lower energy consumption and lower carbon emissions.

"[It] is also an excellent tool for enriching and enlivening local communities with more time and money being spent in your area."

George Derbyshire, chief executive of the national enterprise network NFEA, recently claimed that more people are becoming inclined to start up home businesses as the economic downturn ensues.

He said many professionals finding themselves out of work are choosing to become self-employed rather than seek alternative employment.

Mr Derbyshire stated that home working is a "legitimate and respectable way to operate business".

Web a business tool not a magic wand

Fri, 21 Aug 2009 12:58:21 GMT

Entrepreneurs hoping to make a living out of an internet-based business should have, at the very least, an understanding of how the web works, it has been suggested.

According to Michael Force of CarbonCopyPro, the internet is "a business tool rather than a magic wand" – a medium through which companies can drive revenue by offering goods or services desired by the consumer.

However, he suggests that desperate people seeking "a quick fix" online for existing financial problems will only make their situation worse if they throw cash at a web enterprises.

Mr Force says legitimate businesses can use the internet to their advantage, given the lower costs associated with firms operating largely in cyberspace.

He explains that they do not require office premises as such, while commuting costs and other associated expenses are eliminated.

"There are no occupancy costs, and payroll is typically kept to a minimum, or eliminated altogether. And since a home internet business is by definition promoted on the internet, there are tremendous efficiencies in advertising expenses," Mr Force adds.

Last week, Ben Dyer of e-commerce software provider Actinic claimed small businesses can attempt to build online communities to promote the goods and services they have on offer.

Travel budgets must be kept under control

Fri, 21 Aug 2009 12:56:21 GMT

Small businesses should continue to keep a close eye on their travel budgets as the recession ensues, allowing them to stretch that little bit further, it has been suggested.

According to Norman Gage, director of business travel at Advantage, this is an area in which small firms have traditionally excelled in.

He said the majority of small firms operating on tight budgets realise that if they have a designated fund for travel, they are only able to pay for a certain number of journeys and therefore plan accordingly.

If firms can reduce the cost of a journey – potentially by booking in advance - then they can do an extra journey, he suggested.

Mr Gage commented: "The economic climate is a big fog-screen for companies who knew and worked towards their travel budgets previously.

"It is the big fat cats who have spent [on travel] and not taken much account of it."

The National Business Travel Association and Egencia predicted this month that global business travel spend will approach £600 billion by 2013.

In 2008, the UK ranked fifth in business travel spend at £25.4 billion, or 4.6 per cent of global spend, after the US, which dominated the market with a share of 28.1 per cent, followed by China (10.1 per cent) and Japan (eight per cent).

Firms instructed to make websites accommodating to new users

Thu, 20 Aug 2009 15:54:20 GMT

A failure to accommodate new customers on business websites continues to cost many firms, it has been suggested.

Writing in his Infusionsoft blog, community manager Joe Manna said small companies often fall into similar traps on the internet, failing to present product-relevant information in a clear and concise manner.

For new customers with a lack of existing knowledge about particular products or services, long pages of technical dialogue are likely to be seen as prohibitive, he suggested.

Mr Manna stated: "Efficiency is king when conveying your ideas to customers and prospects. Judiciously allocate the longer copy pages for the time when prospects should be interacting longer and educating themselves; while using bullet points for product features and such."

Continuing, he suggested that many firms were blighted by inconsistent branding on their websites, with poorly blended pages, shopping carts and email templates all proving a turn off to potential customers.

This, aligned with an unclear call to action, renders the online marketing efforts of many firms worthless, Mr Manna suggested.

He commented: "The goal is to provide a good experience so people can find your site, get what they need and ideally come back for more. If you do that, your site is likely performing well."

Last month, Paul Elliott, Business Link adviser for the East Midlands, claimed email marketing campaigns are a cost-effective advertising option for small companies.

FPB says interns bring new ideas to growing businesses

Thu, 20 Aug 2009 15:53:20 GMT

Growing businesses can use internships and apprenticeships to their advantage by benefitting from the drive and creativity of younger people, it has been suggested.

Commenting ahead of the publication of A-Level results for the 2008-09 academic year, Phil Orford, chief executive of the Forum of Private Business (FPB) claimed those leaving education can add value to small companies in terms of new ideas and enthusiasm.

He added that by taking on young workers, firms also help the economy, and provide individuals with the skills and confidence they need to enter their first full-time paid job and succeed.

Mr Orford stated: "We regularly take on work experience students, interns, and recent school-leavers and graduates.

"They have always proven to be a great asset to the organisation and, in return, have left us with a good taste of what doing business is all about."

Last month, John Wright, national chairman of the Federation of Small Businesses, claimed that small businesses can maximise the value of taking on apprentices by increasing their salary, as this may encourage greater loyalty and productivity.

He suggested that firms could also expect to attract a higher calibre of candidate by offering a slightly higher hourly wage.

Entrepreneurs urged to learn about running a business

Thu, 20 Aug 2009 15:51:20 GMT

Although the task may be daunting to many, there is nothing more exciting than starting a small business, it has been claimed.

The Hubbard College of Administration (HCA) says running a business can be extremely fulfilling, but learning exactly how to start an enterprise is vitally important first for any individual keen to embark on a life in self-employment.

HCA deputy executive director Nick Terrenzi claimed that the major reason for the majority of business failures is a bad or no management.

"People starting a new business may be great in their profession, but struggle with the basics of administration and people management," he commented.

The college claims that knowledge and understanding of human resources, marketing, sales, accounting, budgeting, production planning, quality control and public relations are all important for entrepreneurs hoping to make waves in the world of business.

"With a solid education and practical experience as in apprenticeships or internships the odds would be markedly shifted for a start-up to succeed," it noted.

Writing for Forbes.com, Chavon Sutton and Brett Nelson recently explained that risk awareness is crucial for all business owners, especially during periods of recession.

They urged entrepreneurs to keep up to date with the latest developments in the sector they are working in to avoid being left behind.

Expert says new firms do not require millions

Thu, 20 Aug 2009 11:12:20 GMT

While individuals starting a small business should have some funds in their bank account to fall back on, they do not require a fortune, it has been suggested.

According to Startup Success editor Leah Grant, people do need money to make money, but "they do not require millions".

She suggested that a sensible minimum amount would be approximately six months' living expenses in a liquid account, given that the majority of initial earnings may need to be reinvested in the company.

Ms Grant proposed that this amount could potentially be reduced if a lifestyle review is carried out with a view to reducing likely expenditure.

She questioned: "Are there expenses you could eliminate or scale back on which would allow you to save additional money, plus, if you've eliminated the expense, it means you'll need less to live on in the future."

Last month, Business Link advised start-up owners to plan meticulously when they make applications for credit – a potentially key point in the life of any new enterprise.

Company owners seeking a business loan should clearly outline background details of their operations, including history, location and activities, the government advisory service suggested.

Entrepreneurs require time to dedicate to new firms

Thu, 20 Aug 2009 11:11:20 GMT

Professionals considering starting a small business to provide their main source of income should ensure they have sufficient time to devote to their new enterprise, it has been suggested.

New Business Mentor Leah Grant, publisher of Start-up Success, has claimed that individuals generally need a minimum of 30 uninterrupted hours per week if they are to make a success of their new company.

This means they should not be caring for a child, conducting household tasks, running errands or telecommuting during working hours, she suggested.

According to Ms Grant, business owners should look at the calendar and map out their average week, including everyday jobs such as collecting children from school and exercising.

She added: "These tasks take up physical space instead of mental space because they're repetitious and so they give you the perception that you have more time than you actually do.

"A new venture takes a lot of upfront time and energy and it will take longer to build a solid client base if you don't have the time to devote to it."

USA Today editor Laura Petrecca recently instructed start-up owners to form and test a business plan before becoming self-employed.

Police initiative demonstrates mobile working benefits

Wed, 19 Aug 2009 13:00:19 GMT

The benefits of mobile technology are to be displayed by the South Yorkshire Police force, which is set to provide frontline officers with access to real-time information and records on their mobile phones.

Developed by Vodafone and Airpoint, the new service is designed to reduce the amount of time officers spend filing reports back at the station, allowing them to be more visible in the community.

Available from October 2009, the mobile service will help officers identify people, vehicles and locations, allow them to complete forms and provide the facility to input and access information.

Should the mobile devices go missing, they are automatically locked and password-protected within 15 minutes.

Sergeant Simon Davies, project manager at South Yorkshire Police, said the force had been looking at ways to streamline working processes for some time.

He added: "Enabling our officers to access key information on the move is a major step forward and we're expecting to see the community benefit from a more visible force continually patrolling the neighbourhoods."

Brett Caine, general manager of mobile working firm Citrix Online, recently claimed that small businesses can embrace mobile working to drive efficiencies without the need for significant financial outlay.

She said the availability of widespread internet access is allowing firms to mobilise their workforce.

Expert says firms can improve IT security

Wed, 19 Aug 2009 12:59:19 GMT

Small businesses are taking steps to secure their IT systems, but some safeguards are largely being ignored, it has been claimed.

Writing for the Western Mail, Russell Lawson, spokesperson for the Federation of Small Businesses (FSB) in Wales, noted that online crime is on the rise and is a growing concern for small businesses, particularly in the current economic climate.

However, citing latest FSB figures, he reported that many firms can do more to ensure they do not suffer as a result of criminal activity.

Mr Lawson said that over eight in ten firms now use a firewall between their computer and network to block spam, while more than half download the latest security patches to keep their software up to date.

Almost four in ten seek specialist IT security advice from expert consultants, he claimed, but just one in ten forms a business continuity plan and even fewer access guidance and training on fraud through regional support networks.

Mr Lawson added: "A particular concern is the issue of theft of domain names, bought or used fraudulently by criminals and competitors.

"Spam emails are also sent by fraudsters using a legitimate business email address to seek out information from clients or simply to tarnish the reputation of the business."

Last week, Sam Franks, small business insurance expert at Hiscox UK, claimed companies should take all possible precautions against office thefts this summer.

Recruitment consultants an option for firms seeking skilled hires

Wed, 19 Aug 2009 12:58:19 GMT

Small businesses can use specialist recruiters to help them attract the level of expertise they need in job applicants, it has been suggested.

According to Andrew Hardaker, managing director at ATA Selection, employers often find it difficult to find suitable candidates, meaning they may need help if they wish to avoid taking on new employees unsuited to the role.

He claimed that good recruitment consultants do not only save employers valuable management time, but add value to their businesses "by sifting the wheat from the chaff".

Mr Hardaker proposed that recruiters have years of experience of getting to know employers' business needs and sourcing top-quality candidates on their behalf.

"We thoroughly assess the employer's needs, and carefully scrutinise each candidate, to ensure that only the best are put forward for interview," he stated.

"[Recruiters] are in a position to assess their track record, knowledge, skills. Moreover, we will be able to match their motivation, ambitions and aspirations with the aims of recruiting business."

Earlier this year, the Forum of Private Business drew attention to the need to retain skilled employees – the next challenge for small companies once they have hired suitably equipped candidates.

Chief executive Phil Orford said government support was needed to help firms hold on to their most valuable staff.

Company bosses urged to focus on personal finances

Tue, 18 Aug 2009 15:34:18 GMT

Setting up a small business brings the major benefit of additional flexibility, but problems can lie in store if individuals are not proactive where their personal finances are concerned, it has been claimed.

According to the Telegraph, business owners must be aware of their financial obligations and responsibilities when they move out of the Pay As You Earn tax system.

Previously, they will have been used to having tax deducted at source, but self-employment requires the completion of self-assessment tax returns each year.

Consequently, business owners are required to resist the temptation to spend all their income, it is claimed.

The Telegraph adds that other perks associated with life as an employee – such as company pension schemes – are also lost when a new business is formed.

It encourages business owners to continue saving for retirement and give full consideration to any investments, especially as a business owner will be shouldering all the investment risk.

"Pension savings attract tax relief at your highest rate, so can be a very efficient way to save for the long term," the article states.

Dr Rebecca Harding, co-founder and managing director of Delta Economics, recently claimed that working for yourself is "something that helps people fulfil their dreams".

Mandelson says government supporting small business sector

Tue, 18 Aug 2009 15:31:18 GMT

Government measures introduced to support the small business sector are working, according to the Business Secretary Lord Mandelson.

Speaking to the Sunday Telegraph, he claimed the state had provided the "real help" called for to help the sector ride the storm of recession.

He said the decision to provide up to £360 million in loan guarantees and defer up to £3 billion in business taxes had saved many local enterprises from closure.

Lord Mandelson added that over 3,700 individual firms had been granted access to finance, while 170,000 had been allowed extra time to pay HM Revenue & Customs.

He noted: "The full economic benefits and financial returns on these investments can only be assessed over time.

"I am confident that we have made the right moves, but I want to test our design and the effectiveness of our interventions in due course."

Earlier this year, members of the Federation of Small Businesses expressed disappointment at the measures announced in Chancellor Alistair Darling's April Budget.

National chairman John Wright said firms were hoping to see the introduction of automatic rate relief on business taxes and a government-funded wage subsidy for short-time working.

He claimed the plans announced would "do nothing" for firms struggling to maintain their headcount in the wake of recession.

Small firms encouraged to market using video content

Tue, 18 Aug 2009 15:27:18 GMT

Firms seeking to raise awareness over their products and services should consider using video to communicate their offering to customers, it has been suggested.

According to Modera chief executive Siim Vips, the medium can be used to advertise a firm's offering in an easy, digestible and useful format, while it can also be shared easily using the internet.

He suggested that there are some business areas where video has obvious advantages and natural appeal, such as fast-moving consumer goods, entertainment and lifestyle, but proposed that with the right production there is no reason why other sectors should be excluded.

"Video doesn't always have to be as highly entertaining as brand owners and marketers may perceive," Mr Vips added.

"For many brands, video can be an excellent tool in providing more in-depth messaging. The nature of video is best suited for originally created and tailored content, so that what is presented can be consumed as intended."

He said the added benefit of more focused content is that it appeals to specific user groups who may be inclined to share the content with friends and peers in social environments.

Online video advertising is growing, according to eMarketer, with a 40 per cent expansion in the market expected over the next four years.

New enterprises an option for older professionals

Mon, 17 Aug 2009 11:48:17 GMT

Older professionals can help stave off the threat of unemployment, caused by compulsory retirement or redundancy, by starting a small business, it has been suggested.

According to Laurie South, chief executive of enterprise organisation Prime, which helps over 50s enter the world of self-employment, senior workers are unlikely to be able to return to the labour market if they have been out of work for more than six months.

He said founding a new enterprise could be a much better option for some individuals than seeking new work, potentially in a sector they are unfamiliar with.

Mr South stated: "I think there is an increasing acceptance that we have got a real problem about over 50s joblessness, because most people now know somebody over 50 who is workless.

"You stand a one in ten chance [of finding a new job], so what we do is help people start their own business. It's a much better solution."

He was commenting after the Trades Union Congress reported that almost half of all unemployed people over 50 today have been out of work for over a year, forcing many in that age bracket into unwanted retirement.

Every year spent in unemployment makes it 24.3 per cent less likely that an individual will find work again, it was reported.

Expert urges use of emarketing for SMEs

Mon, 17 Aug 2009 11:47:17 GMT

Small and medium-sized enterprises (SMEs) should embrace emarketing as they bid to drive revenue in a competitive market, it has been suggested.

According to Chris Lake, editor in chief at online publisher Econsultancy, online advertising and promotions can provide both value for money and accountability in terms of insight into the success of particular campaigns.

He stated: "Emarketing can help extend an SME's footprint into new territories, it can generate increased business from repeat customers, and it can help attract new customers. It is incredibly useful from a measurement perspective.

"Emarketing supports and joins up other offline marketing efforts, helping firms to measure return on investment, and help them understand what works and what doesn't."

However, Mr Lake said emarketing should be used as part of a multichannel strategy, not simply adopted because it is perceived as being cheaper or easier.

"It is about being smart, and not just throwing money at customer acquisition... that's not the answer," he added.

According to Ben Harris, managing director of the New Brand Vision Group, firms should pay close attention to how they portray their operations when conducting any marketing campaigns.

He suggested that cheap and poorly-produced promotional materials reflect badly on SMEs and can cost custom.

Small company image reliant upon strong marketing

Mon, 17 Aug 2009 11:45:17 GMT

New businesses can save on long-term costs and establish a sound platform for operations by getting marketing right from an early stage, it has been suggested.

According to Ben Harris, managing director of the New Brand Vision Group, firms should invest in the promotional side – even using an agency if necessary – as this makes "a real difference" to the quality of the business."

Individuals who plan their marketing alone with little or no support often run into difficulties, he noted.

Mr Harris stated: "Getting your initial marketing right is very important because otherwise you will end up having to change it sooner or later and while it might seem like a lot of money at the beginning, if you spend it wisely you will end up saving in the end."

He added that businesspeople can lose credibility by circulating home-printed business cards and other materials.

"Business is a leap of faith and there aren't many places you can go to validate someone but a well presented business card, brochure or website are places where you can start to trust people," he stated.

According to research conducted by YouGov, more than a third of small and medium-sized businesses plan to increase their investment in marketing over the next twelve months despite the current economic climate.

Social networking sites 'offer new marketing approaches'

Fri, 14 Aug 2009 14:20:14 GMT

Small businesses are still not sold on how useful social networking websites are to their sales and marketing campaigns, according to on expert firm.

Media consultancy firm Elemental Communication claims that sites such as Facebook can allow businesses and brands to build relationships with customers.

It adds that giving businesses the opportunity to make sales directly through certain social networking sites may tempt firms to make their brands more identifiable through the presence online.

However, some small businesses are still "unconvinced" what value advertising on Facebook and the like can offer them.

Tim Gibbon, director at the media consultancy, claims social networking sites could give brands "different ways to reach customers, possibly in an approach that couldn't be achieved on their own sites".

He added: "Facebook exposes them to a larger audience, the trade-off is that they lose the opportunity to present their intended shopping experience.

"Also, e-retailers would be restricted by any constraints, policies and so on that Facebook decided to implement, which may or may not align with their goals and objectives."

A recent article by David Gelles published in the Financial Times claimed that 80 per cent of the largest advertisers in the US are using Facebook to promote themselves.

Small businesses to increase marketing spending

Fri, 14 Aug 2009 14:19:14 GMT

Small businesses across the UK are to increase their sales and marketing investments in the next year, new research suggests.

A YouGov study found that 31 per cent of almost 1,000 small business owners said they "agreed" when asked about planning more investment in sales and marketing, with an additional seven percent saying they "strongly agreed".

The research also found that 40 per cent of small businesses would like to bring the production of their sales and marketing material in-house.

It is hoped that by doing this, external costs can be reduced and businesses can save money during the troubled economic climate.

Beth de Avila, brand manager at Hewlett Packard UK, the firm which commissioned the research, said the results show how firms think "bringing printing requirements in-house" can drop costs.

"These results highlight how UK small business owners are not panicking in their attitudes to marketing during the current economic downturn, and are budgeting for the long term as well as the short," she added.

"Previous recessions have shown that those businesses that market themselves well during fallow periods, are significantly better positioned when the good times return."

A recent report by More Than Business claimed the costs of running a small business has dropped due to deflation.

Warning issued over business energy contracts

Thu, 13 Aug 2009 13:04:13 GMT

Businesses and energy suppliers must work together better to support their common interests, it has been claimed.

Energy management consultancy Power Efficiency has warned that up to half of all companies could face financial hardship due to demand for prepayment from suppliers, who are increasingly unwilling to issue quotes without approval from credit insurers.

Bobby Collinson, managing director at the firm, said even large, well known businesses were now experiencing difficulties securing the necessary credit terms to get a competitively costed energy supply.

"As a result we feel it is our duty to publicly call upon insurers and suppliers to take steps to better assist businesses facing this problem, rather than burdening them at an already challenging time," he stated.

Mr Collinson said the situation is set to worsen as more businesses reach the end of their three-year contracts and attempt to renew or find new energy suppliers.

"Businesses that had no problem securing a supply contract three years ago may now find they cannot get credit approval or are required to pay up to four months fees in advance," he added.

Speaking last year, John Holbrow, environment and energy chairman at the Federation of Small Businesses, said rising prices in this area were having an "extremely adverse effect" on companies.

Businesses informed of VoIP benefits

Thu, 13 Aug 2009 13:02:13 GMT

Many growing businesses may be yet to invest in Voice-over Internet Protocol (VoIP) technology, but this situation is likely to change as its profile rises in the future, it has been claimed.

Rupert Wood, principal analyst at the telecoms adviser Analysys Mason, said the method of communication – where calls are facilitated by the internet rather than a landline or mobile – is not yet seen as mainstream.

He said the fact that no major operator in the UK currently offers VoIP as a primary service - only as an add-on - meant its profile remains relatively low despite the cheap calls and good voice quality it offers.

"Until, and we do expect this to happen, operators start offering VoIP as a primary line service then people will probably be largely uninterested in VoIP," Mr Wood stated.

He suggested that the UK was little different to other countries in the world in terms of its low take-up levels, hinting that the low profile of the technology remains an international challenge.

According to Ofcom, 12 per cent of adults claimed to be using VoIP in the first quarter of 2009, an increase from nine per cent a year previously.

Some 60 per cent of adults said they were now aware of the service, while 17 per cent have access to the service.

Additional benefits to social media explained

Thu, 13 Aug 2009 13:00:13 GMT

Social media tools can be used in the workplace to help business owners and employees communicate and collaborate more efficiently with clients and colleagues, it has been claimed.

According to Jason Falls, a social media consultant and blogger on socialmediaexplorer.com, there is a difference between using a site like Facebook to do business and using other more business-focused social networking tools.

However, he said companies that do promote social networking may give their staff "a much greater sense of pride in a company that embraces innovation and empowers them to use it".

Mr Falls added that while using social networks can be beneficial internally, they can also help the business flourish in the online realm as allowing workers access to social media provides "an ad-hoc sales force" where employees unofficially engage in promotional duties on behalf of the firm.

This "organically grows" the conversation and positive interactions with a firm's brand in the online space, potentially generating new trade, he suggested.

"Why wouldn't you want that inside the enterprise?" he questioned.

Meanwhile, social networking software company Reality Digital recommended this week that businesses adopt social networks as a way of cutting communication costs in the office.

FPB urges use of public procurement portal

Thu, 13 Aug 2009 12:58:13 GMT

Small businesses seeking to drive revenue should use the internet to maximise their chances of winning public contracts, it has been suggested.

The Forum of Private Business (FPB) reports that the government has abandoned its policy of charging up to £180 per year to use its supply2.gov.uk portal.

According to the FPB's policy representative Matt Goodman, this important change – as recommended by the Glover review of public procurement – will increase opportunities for small companies that may have seen the charge as being prohibitive.

He stated: "These measures will help save more small firms from closure and provide a catalyst for economic recovery.

"Removing the cost barrier to accessing the supply2.gov.uk portal is a significant step towards improving access to public contracts and small businesses should register on the site without delay."

The FPB instructs business owners attempting to win contracts to source reliable and timely information on available contracts, properly prepare for the Pre-Qualification Questionnaire process, fill out all forms carefully and accurately, build a relationship with the buyer and attempt to put themselves in the shoes of the decision maker.

According to publicprocurement.co.uk, there are over 100,000 publicly-funded organisations in the UK, meaning many opportunities for work exist in this sector.

Women outgunning men in high status jobs

Wed, 12 Aug 2009 16:25:12 GMT

European women now occupy more high status jobs than men do, according to research conducted by the University of Cambridge.

A new report by Dr Robert Blackburn indicates that although men are still paid more than women, the changing nature of the workplace and better education for young females has led to "a quiet revolution".

Professions such as doctoring, nursing and teaching are all particularly well-populated by women across the continent, he suggested.

Karen Gill MBE, co-founder of everywoman, said she welcomed the news that more women were taking up positions in professions previously dominated by men.

However, she said greater progress needed to be made on gender equality.

"Women should be encouraged to aspire to the very top of their career, but once there, they deserve to expect the same opportunities, recognition and remuneration as their male colleagues," she added.

"In short, whilst this study presents good news, there is still much to be done."

According to a new Equality and Human Rights Commission report, the gender pay gap for full time hourly gross earnings is 45 per cent among the highest earners.

Meanwhile, women working full-time in the lowest paid roles in the sector receive on average 16 per cent less in hourly gross pay than their male colleagues.

Thought needed over flexible working introduction

Wed, 12 Aug 2009 16:24:12 GMT

Firms need to consider how best to implement flexible and home working schemes if they are to prove successful, it has been claimed.

Stuart Woollard, managing director of the King's College London HRM Learning Board, told BNet.co.uk that flexible working may not realise anticipated benefits or may even fail if it is not approached in the right way.

Firstly, he explained the importance of tailoring the scheme to individual workers, taking note of the fact that in each case their circumstances are likely to be unique.

"One size does not fit all and may only work for the right kind of person in the right kind of role," he suggested.

Mr Woollard said both individuals and their employers need to understand what gains they can expect from flexible working and strategically work towards achieving these.

Employers should also consider how best to encourage collaboration and effective communication between remote workers, he advised, while also working out how to avoid discriminating against non-standard workers from a career development perspective.

He suggested that business owners should seek advice and support on the matter, and use guidance resources to provide valuable insight.

Writing for NN, Jon Reed, of the American Educational Guidance Center, recently said the ability to work flexibly – both in terms of time and location – can save time and money for workers.

More Than reports fall in small business costs

Wed, 12 Aug 2009 15:35:12 GMT

Operating costs continue to fall for small businesses as a result of deflation, according to More Than Business.

The firm's latest Business Inflation Guide indicates that costs have been falling since the fourth quarter of 2008, as companies spend less on labour, advertising and raw materials.

Mike Bowman, head of More Than Business, said the fact that such sustained deflationary conditions were being experienced demonstrates how deep the recession has become in the UK.

"While it is cheaper to run a small business, it is clear that demand for goods and services is dropping off considerably and that is why prices are spiralling downwards," he stated.

Mr Bowman expressed concern that deflation was making it more difficult for firms to plan and invest, placing additional pressure on cash flows and managing stock and staffing levels.

"There are a lot of small businesses which have never experienced anything like this before," he stated.

However, he added that for service-based firms, the current conditions could be ideal for start-ups, as labour costs have fallen considerably.

The British Retail Consortium-Nielsen Shop Price Index witnessed annual inflation of 0.5 per cent in July 2009, down from 0.7 per cent in June.

Security precautions needed for businesses

Wed, 12 Aug 2009 15:32:12 GMT

Small businesses should take all possible precautions against office thefts this summer, it has been claimed.

According to Sam Franks, small business insurance expert at Hiscox UK, workplace burglaries are particularly common at this time of the year, meaning it is vital to ensure the office is secure at the end of each day.

He called on companies to protect premises by changing access codes and removing systems access when employees leave, conducting business continuity and disaster recovery reviews and taking steps to protect sensitive business information.

Mr Franks commented that theft can have a number of "devastating consequences" to a small business, including a loss of staff productivity and income while equipment and client data are restored.

"Simple tricks such as backing up data and improving IT security can save a business thousands of pounds, while having the necessary insurance cover is vital should the worst happen," he added.

Last month, insurance firm AXA reported that 64 per cent of small businesses have been the victim of a crime during the last 12 months.

The company also reported that year-on-year numbers of crimes against businesses had increased by around ten per cent during the first two quarters of the year.

Cost and productivity benefits driving mobile working adoption

Tue, 11 Aug 2009 14:26:11 GMT

Business owners are increasingly aware of the benefits of mobile working from a cost reduction and productivity perspective, it has been suggested.

Writing for Fresh Business Thinking, Oliver Chivers, head of business marketing at T-Mobile UK, said that while managers may have been reluctant in the past to allow employees to work outside of the office, they are beginning to embrace the concept.

He said they are starting to realise that workers become more motivated by businesses offering them a certain level of flexibility in their working hours, something that is especially important during periods of downturn when staff morale may be low.

Where expenditure is concerned, small businesses in particular can benefit from a one-off investment in mobile technology, Mr Chivers suggested.

He added: "In small businesses and new start ups, flexible working can make an even larger impact on the bottom line, as renting office space is often one of the most substantial costs for these firms.

"Some may even find that mobile technology offers them the flexibility necessary to make it possible to avoid operating from an office in their first few months."

More flexible network operator tariffs are also helping firms to predict mobile working costs from month to month, increasing their confidence, Mr Chivers claimed.

Last year, Leeds-based information technology firm Ulysses IT told the Yorkshire Post that employees can save up to £500 over the year by using mobile technology to work remotely.

Firms encouraged to build online communities

Tue, 11 Aug 2009 14:24:11 GMT

Small businesses can attempt to build online communities to promote the goods and services they have on offer, it has been claimed.

Entrepreneur Ben Dyer, of e-commerce software provider Actinic, explained that he has managed to build a 10,000 member community since 2002, offering the firm the chance to receive regular feedback and gain additional insight into the minds of customers.

He suggested that by providing interesting online content – perhaps through a written blog, audio or video – and offering links to this through other sites, businesspeople can slowly develop an online following.

This requires patience and commitment, he suggested, but the long-term benefits are clearly evident for those who stay the course and establish a thriving community.

Mr Dyer said leadership, ground rules, flexibility and the ability to respond positively to criticism are all key ingredients of success.

He added: "Running a community is hard work, but it can be a fantastically rewarding experience for both you and your customers.

"The reality is that if you have a successful company, product or service, your customers will be talking about you anyway. What you need to decide is whether you are willing to facilitate the conversation."

Last month, Emily Hill, managing director of Write My Site, claimed that too many business blogs are not kept up to date, offering an image of unprofessionalism.

Informed decisions crucial for growth

Tue, 11 Aug 2009 14:22:11 GMT

Small business owners should seek as much advice and support as possible as they bid to grow their companies, it has been claimed.

Todd Rammler, president of outsourcer Michigan CFO Associates, claimed 99 per cent of firms have no written plan for growth to guide their decision making.

Commenting after research conducted by the company indicated that 98 per cent of firms fail by their tenth year, he suggested that owners need information and specific skills on business planning and analysis, especially where finances are concerned.

This is the case more than ever as the recession ensues, Mr Rammler stated, as firms will want to avoid joining a growing list of insolvent operations.

"An uninformed decision can easily lead to losing a company, as well as wiping out the owner personally. Sound decision-making is crucial," he added.

Earlier this year, research conducted by Business Link indicated that 60 per cent of small business owners still intended to expand their enterprise over the coming year despite the recession.

Some 42 per cent of business owners said they would be looking to exploit new business opportunities in the coming months, while 17 per cent said they would seek to boost their market share by developing new products and services.

Annual budgeting crucial for small businesses

Tue, 11 Aug 2009 14:16:11 GMT

Planning and managing a budget is crucial to the success of any small business, it has been claimed.

Writing for the LA Times, editor Cyndia Zwahlen said even a basic budget can offer "a competitive edge" in the current economic climate – simply because it requires business owners to look ahead and plan for the future.

She commented that when employees, customers and investors know a decision maker has an idea about how a company is likely to fare, they have more confidence in both the individuals running the firm and the business itself.

Ms Zwahlen said owners should determine what the company will spend over the next 12 months, using current and past financial year information to build a month-by-month list of fixed and variable costs.

Once this has been done, expected monthly revenue should be estimated and then compared with predicted expenditure, she said.

Budget variations to cover a number of situations which could potentially arise are also needed, Ms Zwahlen stated, while cash flow should also be mapped.

According to the More Than's quarterly business inflation guide, the costs associated with operating a small enterprise fell during the first quarter of 2009.

SMEs urged to consider alternative credit options

Tue, 11 Aug 2009 14:16:11 GMT

Small and medium-sized enterprises (SMEs) should attempt to secure credit from sources other than the high street banks, according to one leading industry figure.

John Wright, national chairman of the Federation of Small Businesses (FSB), said small firms were still finding it tough to access affordable loans and overdrafts from banks – despite positive reports of an increase in lending from institutions such as the British Bankers' Association (BBA).

He noted that although the banks had been given support from the government to steer them through the recent crisis, much of this funding is not accessible to local branch managers meaning they are unable to provide the required level of support to SMEs.

Mr Wright added that the FSB would like to see more alternative sources of finance provided locally such as through regional development agencies, local councils or post offices.

"This would increase the choice of finance on offer to business owners, thereby enhancing their prospects of survival and helping them play their part in stimulating the economy and getting the UK out of recession and onto a steady recovery," he added.

According to the BBA, a £391 million increase in lending to the small business sector was seen during June 2009.

Expert says social networks have retail potential

Mon, 10 Aug 2009 15:23:10 GMT

Online retailers have been urged to take their sales and marketing campaigns on to popular social networking sites such as Facebook.

According to Brian Howe, chief strategy officer at the commerce-enabled advertising network Alvenda, such sites are a potential goldmine for firms as users are often reluctant to leave them to go elsewhere on the internet once they have logged on.

He described Facebook as "a party people do not leave", suggesting that it is "a clear path to revenue and brand differentiation".

Mr Howe explained that it can be argued that "the majority of online sales will happen off-site", so e-tailers should look at choosing where they set up shop online as if they were doing so offline.

"It is about location, location, location," said Mr Howe.

According to an article entitled Online retailers point to new phase for Facebook, written by David Gelles and published on FT.com, a new wave of sophisticated ecommerce applications is appearing on Facebook.

He said this was a sign that the world's largest social network could rapidly emerge as a big destination for online shopping.

According to Wade Gerten, chief executive at Alvenda, up to 20 online stores will be accessible on Facebook within the next two months.

Realistic promises important in business

Mon, 10 Aug 2009 15:22:10 GMT

Growing businesses should not over-promise when seeking new custom, but they should always seek to over-deliver, it has been claimed.

According to Mark Wardell, president and founder of business consultancy Wardell Professional Development, many firms often do the opposite - making pledges they cannot honour in order to make a good first impression.

He said many business owners were so keen to make sales that they "promise their customers the moon but then fall just a little short" – something that is likely to lose them trade.

"The bottom line is that you must organise your business so that you always exceed, but absolutely never fall short of a promise to a customer," he stated.

Even if excellent customer service is offered, a bad taste will be left in the mouth of the customer if the experience failed to live up to expectations generated through an initial guarantee, Mr Wardell said.

Dr Alan Weiss, of the Society for Advancement of Consulting, recently urged small business owners to keep as a tight grip as possible on both the management of their workforce and customer base as the recession ensues.

"It is important for company leaders to exercise exquisite judgment in balancing short-term and long-term needs," he noted.

Funding shortage causing insolvencies

Mon, 10 Aug 2009 15:21:10 GMT

Many company insolvencies have been caused over the past few months by a lack of access to credit, according to Forum of Private Business (FPB).

Latest figures from the Insolvency Service indicate that there were 5,055 compulsory and voluntary liquidations in England and Wales during the second quarter of 2009 – up 2.9 per cent on the previous quarter and 39.1 per cent on the same three months of 2008.

According to the FPB, this finding is largely explained by the £14.7 billion drop in funding for small businesses witnessed over the same period.

FPB spokesperson Phil McCabe said "a variety of factors" were contributing to soaring insolvencies, but he said that they all lead to the same major symptom – "a lack of cash".

He added: "Some banking bodies are claiming that lending to small businesses has improved following the government's intervention, but our research has consistently shown that demand for finance is not being satisfied by the supply from lenders."

Last week, Jane Milne, business environment director at the British Retail Consortium, said it was "outrageous" that some retailers are being forced to let staff go because of a lack of affordable finance.

She claimed that while the banks' current cautious approach to lending is understandable, there is "no reason" why they should not lend to fundamentally sound businesses.

Small firms urged to consider virtualisation

Fri, 07 Aug 2009 15:13:07 GMT

Small business owners can give their companies a leg-up by investing in virtualisation technology, it has been claimed.

Writing for PC World, IT manager Michael Scalisi claimed that any IT tasks being performed on outdated small business hardware could be better served by a virtual machine on a modern computer.

He said that the perception that virtualisation is a feature of big-budget data centres is wrong, adding that the technology could be used to benefit firms of all different sizes.

Rather than tired systems dying at an inconvenient time, businesses can gain low-cost access to the latest software, allowing them to perform a variety of different functions, Mr Scalisi suggested.

"Suddenly your IT environment is using less power, is far more redundant, and you've done it all by leveraging your current systems," he noted.

Speaking to the Enterprise Storage Forum, Chris Steffen, principal technical architect at Kroll Factual Data, recently claimed that virtualisation measures have led to a big improvement in the way firms prepare for disaster recovery.

He said his firm had benefited massively from adopting virtualisation and had been able to reduce its server population by 40 per cent.

Small steps the best policy for new companies

Fri, 07 Aug 2009 15:11:07 GMT

Entrepreneurs starting a new business should make the task seem less daunting by breaking major challenges down into smaller tasks, it has been claimed.

According to business development expert Andrew Cass, this can make everything seem much less overwhelming, something that helps concentration and ultimately productivity.

He said tasks such as registering a business name could be broken down into smaller actions, for instance thinking of suitable name ideas, finding out how to register an enterprise, securing an application form and so on.

Mr Cass added: "Once you've broken down major tasks into smaller ones, make and keep a 'to do' list.

"Always keep a notepad and pen with you so that you can jot down any new ideas as they arise."

He suggested that business owners should always plan the following day, identifying a number of essential activities and committing to them.

"Stay focused on these tasks and only move on to the next ones on your list once these have been completed," he advised.

The comments echoed those of flexible working advocate and author Antonia Chitty, who claimed earlier this week that individuals looking to set up a new company must ensure they have planned every aspect of their enterprise before opening.

Expert says home working has advantages

Fri, 07 Aug 2009 15:00:07 GMT

Home workers gain a number of advantages over office-based staff, it has been claimed.

Writing for NN, Jon Reed, of the American Educational Guidance Center, said the ability to work flexibly – both in terms of time and location - is a major bonus.

He stated: "When you are at home you can work nicely, but also be available in case of any family emergencies or non-work related needs.

The elimination of commuting time makes a big difference to the working day, Mr Reed added, avoiding waste and encouraging greater productivity.

"Think of what you could do if you had two hours more available to you each day. You could use that time for your work, or for some leisure time activity that you cherish," he suggested.

Reduced expenditure is the other major advantage of working from home, he said, especially for self-employed people who can save not only on travel but also on office and utility costs.

Earlier this year, insurance firm Aviva predicted that one quarter of the UK working population would be carrying out employment duties from their home within a decade.

The desire to improve the work-life balance will encourage a major shift towards flexible working, home lifestyle manager Julie Fromant claimed.

Firms urged to join email marketing revolution

Thu, 06 Aug 2009 15:13:06 GMT

Small businesses are missing out on potential custom by failing to embrace email marketing, it has been suggested.

According to marketing firm Vistaprint, web-based promotions offer a more affordable way of reaching out to existing and future customers – something that is especially important during recessionary times.

One of the benefits of such campaigns is the fact that they are very simple to set up, often taking just a matter of minutes to design and launch, it is claimed.

Advanced analytics also let small businesses gain insight into which areas are working well and which are underperforming, Vistaprint says.

Mindy Sanderson, small business marketing specialist at the firm, said email marketing is something large companies have been using for years to promote offers, inform customers, and reduce their reliance on direct mail.

"Small businesses might have once thought that this method was too complicated and expensive for them, but that is just not the case anymore," she added.

Such comments echo those of Paul Elliott, Business Link adviser for the East Midlands, who recently claimed that the flexible nature of email marketing makes it appropriate for small business use.

He said the medium allows businesses to create advertising campaigns that can be quickly and easily refreshed in order to maintain the interests of clients and customers.

Web-based communication may offer workplace benefits

Thu, 06 Aug 2009 15:12:06 GMT

Communication technology is helping to change the workplace in "unexpected ways", according to the Chartered Management Institute (CMI).

Ruth Spellman, chief executive of the leadership body, said email and other web-based tools could be extremely useful for encouraging collaboration between staff members.

"Online communication tools can be very useful for sending memos and getting a message to all staff at the same time," she claimed.

She suggested that the new generation of businesspeople, who have grown up using IT from an early age, are readily equipped to take advantage of such applications and enthusiastic about the benefits they can bring.

"They have grown up with the technology, they understand it, so they do not fear it," Ms Hackitt said.

As such, she noted that younger managers should have the ability to introduce older workers to new IT systems and ways of working, allowing everyone within a company to benefit from the internet revolution.

Research conducted by www.HireScores.com indicates that 18 per cent of managers find it easier to sort out work problems virtually.

Meanwhile, 74 per cent of employees surveyed said they are much more confident to raise problems with their manager via an email.

Economist foresees end of recession

Thu, 06 Aug 2009 15:11:06 GMT

Small business owners can be confident that the end of the recession is nearing, according to a leading economist.

Michael Baxter, of the research company Defaqto, said economic growth could return to the UK within a matter of months.

He was commenting after the CIPS/Markit Purchasing Managers' Index showed an upturn in the manufacturing industry, rising 50 points in July.

Mr Baxter proposed that CIPS reports are usually a good indicator of the UK's economic position and as such it is "a mistake" to ignore them.

He commented: "The signs are pretty clear right now that UK is going pull out of recession in the next few months and I think the CIPS report is another bit of evidence of that.

Based upon this notion, he advised the Bank of England to cease its current programme of government stock purchases and allow the economy to find a level footing.

"I think it would be a bit of a mistake to do more of that quantitative easing," he stated.

Earlier this week, Vicky Redwood of Capital Economics claimed the Bank could even extend its asset purchasing scheme this week, despite already committing to inject £125 billion in to the nation's finances.

FPB says businesses and employees should not face parking space tax

Wed, 05 Aug 2009 12:13:05 GMT

Small businesses should not be required to pay tax on employee parking spaces, according to the Forum of Private Business (FPB).

Commenting after Nottingham City Council announced plans to introduce a Workplace Parking Levy (WPL), which is expected to rake in £11.3 million per year, the forum said it was a "scandalous tax on business".

The council claims the scheme – which would charge firms up to £350 per parking spot - is designed to dissuade drivers from taking to the roads, but the FPB says workers will simply park in other locations if their space is removed.

The FPB believes the scheme, which is set to come into effect from 2012, could set a dangerous precedent and encourage other councils to adopt a similar approach.

Phil Orford, the FPB chief executive, said the WPL amounted to little more than a stealth tax.

He commented: "It's the business equivalent to introducing a driveway tax to charge people for parking outside their own homes.

"This announcement could not come at a worse time for smaller businesses, who are struggling with rising costs on almost every front and trying their best to make it through the recession."

Mr Orford urged the government to prohibit the scheme and look for other ways to reduce pollution by improving public transport quality and provision.

The Conservative Party has also spoken out against the introduction of the scheme.

Customer experience aided by answering services

Wed, 05 Aug 2009 12:11:05 GMT

Many small businesses could benefit from investing in answering services, according to one business commentator.

According to Robert Porter of We Answer, many growing firms have plenty of vision and creativity, but lack the time and resources to provide a high level of customer service.

He claims that answering services – which use live agents to manage incoming correspondence and handle enquiries - can fill in this customer service gap for small companies which are keen to expand but lack the infrastructure and finance to take on additional staff members.

Mr Porter states: "If businesses choose an answering service that knows their stuff, they build a bridge of communication between themselves and their customers."

He said benefits of outsourcing customer service duties can include affordability, a high level of support and the provision of niche services.

"Answering services are a power tool for small businesses, allowing them to focus on customer service without breaking the bank," Mr Porter added.

"Great services increase professional image and shoot customer service ratings straight to the top."

Last week, TMCnet channel editor Jessica Kostek claimed that virtual offices can save money and free up employees to conduct duties.

Small firms advised to establish websites

Wed, 05 Aug 2009 12:07:05 GMT

A business without a website is equivalent to a person without an identity, it has been suggested.

Internet solutions firm Web4half says that while the success of a company is dependent on a variety of major functions, branding is extremely important and there is no better place than the internet to market goods and services.

The firm claims the net has become a way to validate businesses and websites are a must for any firms wishing to promote themselves effectively.

It adds: "The best designed websites will promote your business on the internet, to everyone from your point of view. A good website will also highlight the reasons a customer should choose you over your competitors.

"Marketing your business online can be just as successful as offline marketing. If your business is well optimised, your business will show up when using popular search engines."

In addition, Web4half notes that the ability for consumers to complete sales from the comfort of their home is leading to increased sales for many online companies.

Last week, Mr Site co-founder Beatrice Hatherley reported that the offline small businesses sector could be collectively reducing its turnover by as much as £235 billion.

Planning essential for every new business

Wed, 05 Aug 2009 12:06:05 GMT

Individuals looking to set up a new company must ensure they have planned every aspect of their enterprise before opening for business, it has been suggested.

According to flexible working advocate and author Antonia Chitty, running a business and being able to fit it in around family commitments is the ultimate dream.

She commented that coming up with the idea for a business can be the easy part, with the tricky bit being getting the company up and running.

For this reason, she urged new businesspeople to seek as much support as possible, using peer advice and networking groups, taking courses if necessary and reading thoroughly.

This should help provide an insight into the financials of running a business and how much needs to be spent to get started, Ms Chitty suggested.

She noted that a marketing plan is a must – otherwise potential customers will have no idea the business even exists - as is a growth strategy for the future.

"Starting a business is an exciting journey and one with lots of decisions to be made along the way. Investing some time in planning upfront, including what you need to do and what you need to put in place will pay dividends later on," Ms Chitty stated.

Earlier this week, business coach Fay Briscoe told the Crewe and Nantwich Guardian that entrepreneurs should discuss their business ideas fully with others before committing to a particular course of action.

Advice needed for small business owners

Tue, 04 Aug 2009 16:08:04 GMT

Professionals entering the competitive world of entrepreneurism should seek as much support and advice as possible as they bid to establish their enterprise, it has been suggested.

Speaking to the Crewe and Nantwich Guardian, business coach Fay Briscoe said it is "a big step" to take the decision to become self-employed.

"It is important people have the chance to talk through their ideas and explore their options fully, she noted.

Ms Briscoe said support could be gained from a variety of sources, including local enterprise groups such as the Chamber of Commerce which runs sessions to provide guidance to budding businesspeople.

She added: "These sessions are a great way for people to meet a range of services and build up their own team of supporters to suit them and their enterprise."

The news provider reports that free awareness sessions are to be run by Cheshire East Council and its partner agencies, in a bid to equip new companies with the skills and knowledge required for them to stand on their own two feet.

Earlier this year, John Wright, national chairman at the Federation of Small Businesses, urged company owners to make use of free advisory services such as Business Link.

Expert claims quantitative easing could be extended

Tue, 04 Aug 2009 16:03:04 GMT

The Bank of England's Monetary Policy Committee (MPC) is likely to vote to extend its quantitative easing policy at this weeks' meeting, according to the economic research consultancy Capital Economics.

UK economist Vicky Redwood said the Bank is likely to keep interest rates at 0.5 per cent and extend its asset purchasing scheme by a further £25 billion.

At its July meeting, the MPC decided to keep interest rates at 0.5 per cent for the third month running, while also committing to continue injecting money into the economy through its £125 billion quantitative easing scheme.

However, Ms Redwood claimed that the purchase of government stocks "appears to have had very limited effects" so far, meaning the Bank is likely to step up the programme this month.

"There are still limited signs that the economy is recovering at a strong pace and there is still scope to do more," she said.

Ms Redwood said it was even possible that the suggested increase of £25 billion could be exceeded should the Bank see significant merit.

The MPC will announce its decision at midday on Thursday August 6th.

HR expert says careers advice can help narrow gender pay gap

Tue, 04 Aug 2009 16:00:04 GMT

Better careers advice is needed if the UK's gender pay gap is to be narrowed, according to one employment expert.

Katja Hall, director of human resources policy, at the Confederation of British Industry (CBI) was commenting after the Women and Work Commission published its report into gender pay.

She said the CBI had claimed for some time that academic choices are a key reason for women earning less than men, as is the quality of careers advice offered to them at school.

Ms Hall noted: "The choices made in formal education affect an individual's earning potential throughout their lives.

"More women should be encouraged to take maths and science subjects, which are very popular with employers."

She claimed it was "a tragedy" that schoolchildren make choices based on poor advice and the stereotyping of subjects and careers, rather than their individual talent and aptitude.

Back in June, Maggie Berry, director of womenintechnology.co.uk, told Onrec that start-up businesses should look at their female talent to help lead them through the period of economic downturn.

She claimed that female professionals have stronger communication skills and more technical ability than men, meaning they can play an increasingly vital role as the recession ensues.

Collaborative approaches needed to tackle business crime

Mon, 03 Aug 2009 13:12:03 GMT

Small businesses should engage with their local Neighbourhood Policing Teams and Crime and Disorder Reduction Partnerships to report crime, it has been suggested.

The Federation of Small Businesses (FSB) says a collaborative approach to tackling crime is needed as the recession ensues, as firms already lose an average of £13,500 each year to illegal activity.

According to the FSB, adopting a proactive preventative approach and reporting incidents that do occur can help inform local police priorities and crime mapping.

An FSB spokesperson stated: "Crime can affect businesses in different ways. Any business with a shop front may fall victim to vandalism or graffiti.

"There is also a risk of theft or attacks on staff. Businesses trading online also have the risk of ID fraud and internet crime such as phishing scams."

FSB statistics indicate that 64 per cent of firms fell victim to crime during the last 12 months, up from 57 per cent in 2006.

However, the federation reports that just 45 per cent of businesses report crime due to a lack of faith in the criminal justice system, meaning official statistics do not reflect the true extent of the problem.

BRC warns of small retailer credit shortage

Mon, 03 Aug 2009 13:11:03 GMT

The poor availability of bank credit is continuing to undermine stock levels and retail employment, it has been suggested.

According to Jane Milne, business environment director at the British Retail Consortium (BRC), it is "outrageous" that some retailers are being forced to let staff go because of a lack of affordable finance.

She said that while the banks' current cautious approach to lending is understandable, there is "no reason" why they need to stop loans to fundamentally sound businesses.

Ms Milne added: "For retailers to survive the current tough trading conditions and keep staff in work they need have to have the right stock on their shelves. This is especially important in the run up to Christmas – the most important trading period for most retailers.

"Extending the trade credit insurance top-scheme will help, but we're calling on the government to extend the scheme to last April – when the recession started to bite.

Over two-thirds of respondents to the BRC's Quarterly Credit Conditions Monitor who witnessed a fall in lending said it had undermined their ability to trade and maintain staffing levels.

Business Link recently urged businesses to ensure they cover every angle when making credit applications to the banks, ensuring they have a firm plan for using the finance and for repaying the debt.

Manufacturing SMEs hopeful for future

Mon, 03 Aug 2009 13:09:03 GMT

Small and medium-sized enterprises (SMEs) in the manufacturing sector have seen the decline in orders and output ease, according to the Confederation of British Industry (CBI).

The group's latest quarterly SME Trends Survey indicates that 17 per cent of SMEs saw a rise in the volume of new orders between April and June 2009, compared to the 51 per cent who experienced a fall.

As a result, the balance of -34 per cent for the second quarter represented a significant improvement on the -51 per cent for January to March.

Manufacturing SMEs expect this balance to improve to minus eight per cent during quarter three, as the recession continues to ease.

Russell Griggs, chairman of the CBI's SME Council, said business conditions "remain difficult" for the UK's small and medium-sized manufacturers.

He commented: "Orders and output are still falling, but things aren't quite as gloomy as they were three months ago.

"The outlook for medium-sized firms looks positive, but it is still too early to say whether export-led growth will deliver a platform for sustained recovery."

Last week, the British Bankers' Association reported a £391 million increase in lending to the small business sector during June 2009.

Homeworking may help prevent swine flu absences

Fri, 31 Jul 2009 13:13:31 GMT

Businesses should be considering moving towards homeworking to help limit productivity losses as the swine flu pandemic strikes, it has been suggested.

The British Chambers of Commerce (BCC) warns that one in every eight employees could be absent form work with the virus by the end of August, affecting many firms' ability to combat the recession.

David Frost, the BCC director general, said companies were likely to be hit by "intense periods of staff absence", while both goods and services supply and demand could be impacted.

He suggested that keeping employees apart may help reduce the passage of swine flu form one to another, potentially limiting losses caused by absenteeism.

"The internet and remote working will allow many firms to continue operating normally should their workplace be affected by swine flu," Mr Frost added.

Earlier this year, the Chartered Institute of Personnel and Development reported how homeworking, facilitated by mobile technology, helped businesses continue working as normal during periods of heavy snowfall in January and February.

It noted that more people had the capability to work from home than 18 years ago - the last time snow caused such commuting problems across the UK – and this had minimised the damage.

Small firms encouraged to pay apprentices more

Fri, 31 Jul 2009 13:08:31 GMT

Small business employers can maximise the value of taking on apprentices by increasing their salary, it has been suggested.

A survey of Federation of Small Businesses (FSB) members found that 82 per cent believed an increase in the national minimum wage applicable to apprentices would give them more of an incentive to complete the placement.

This would be beneficial from a business growth perspective, as skills are retained for a longer peiod of time and extra responsibilities can be assumed in the workplace.

According to John Wright, national chariman at the FSB, firms could also encourage a higher calibre of applicant for apprentice roles if they were able to offer greater remuneration.

He commented: "Small businesses are eager to do their bit and to take on new employees, but the government must step up and help them to tackle the problem of unemployment.

"Funds from the Train to Gain scheme in England must be ring-fenced for the smallest firms, to ensure they are able to get the funding they need to train and support an apprentice."

Last month, Dr John McGurk, advisor for learning and talent development at the Chartered Institute of Personnel and Development, said investing in the development of new employees – especially graduates who may not be equipped with workplace skills – is vital for expansion and growth.

Small firms urged to form an IT growth strategy

Thu, 30 Jul 2009 15:00:30 GMT

Businesses that choose to halt spending on IT now may be faced with tough decisions on how they develop their computing in the near future, it has been claimed.

After a report from the Organisation for Economic Co-operation and Development suggested that the ICT sector is showing signs of recovery, Mike Dean, a spokesperson for the National Computing Centre, said firms which are unwilling to invest may be forced to forego upgrades or even outsource some services.

He said the "gut reaction" from most IT purchasers has been to stop or delay any planned expenditure as a result of the economic downturn.

Mr Dean added: "Whilst this will help cash flow and short-term profit and loss reporting, purchasers will be forced to bite the bullet at some stage.

"This means that they will have to face some strategic decisions about IT in the near future. Will they keep with what they have for longer… or move to cloud computing and outsource key applications?"

According to a recent survey by Gartner, although organisations are continuing to drive down their total IT spending in 2009, 2010 will see worldwide software budgets increase.

The study indicated that organisations plan to increase their budgets by an average of 1.53 per cent in 2010.

Aviva calls for continued health and safety focus from SMEs

Thu, 30 Jul 2009 14:58:30 GMT

Small and medium-sized businesses (SMEs) must keep health and safety a priority as the recession ensues, according to one insurance firm.

A recent Aviva Risk Management Solutions indicated that three-quarters of firms have continued to employ external consultants for health and safety, but the firm is keen to ensure that SMEs do not let their standards slip as they bid to reduce costs.

Kevin Chicken, training and consultancy manager at the firm, said the survey finding was "extremely positive" given the pressures being faced by SMEs in the current market.

He recommended that every business has a fully-qualified competent person solely dedicated to health and safety issues.

Mr Chicken continued: "We would also urge businesses to seek a professional opinion on the more crucial matters, which can mean using external consultants who can help to identify, assess and manage any risks.

"Businesses must recognise that cutting their health and safety budget is a false economy and that it should remain a top priority to ensure the safety of employees and the reputation of the business itself."

The Health and Safety Executive reported last month that the number of UK workplace fatlaities redued during 2008-09.

Small firms urged to use video content for marketing

Wed, 29 Jul 2009 15:43:29 GMT

Businesses can successfully market their products and services using well-executed video content, it has been claimed.

Rachel Hawkes, account director at media consultancy Elemental, said that with all businesses experiencing challenging economic times and consumers being more frugal with their budgets, it is "crucial" that they embrace all of the relevant marketing opportunities available to them.

She noted that unlike other forms of media, video is a multi-sensory and participatory medium, adding that by default users are more engaged than they are with other forms of media.

Ms Hawkes added: "Well executed video content can assist brands meeting the three crucial elements of a successful e-commerce business; product, traffic and conversion.

"By employing an intelligent video strategy, e-commerce businesses are assisting their customers to make informed decisions about the products they are looking to purchase."

She said firms could use videos to demonstrate or model products, explain how they work, give insight into the design or brand, or even talk generally about the particular industry.

A recent study from dotCommerce reported that many UK retailers are neglecting to include added-value content and features on their websites that will encourage repeat visits, high transaction values and ongoing brand loyalty.

Security vital for small businesses

Wed, 29 Jul 2009 15:41:29 GMT

Small businesses must invest in security or they will be left vulnerable in the event of unforeseen disasters, it has been claimed.

According to the Successful Investments blog, this issues should be given proper attention and be included in strategic planning and management.

The writer claims the physical security of goods is essential, meaning safes and potentially security cameras should be used on business premises.

In addition, he comments that the protection of finances, ideas and information is equally as important, as especially during times of economic difficulty the fraud risks faced by companies are high.

The writer adds: "Be wary of people claiming to help you get your business to a higher level. Also be sure that you have a secure backing, for example a reliable bank, before you take on a new venture.

"Most importantly, be sure to have a back-up plan in case something inevitably fails."

According to insurance firm AXA, the number of businesses affected by arson, malicious damage and forcible theft has risen during the recession.

Its latest survey indicates that while the actual cost of crime remains at a similar level, firms are now more likely to become a victim.

Firms told to stay calm in times of crisis

Wed, 29 Jul 2009 15:37:29 GMT

Businesses can improve consumer confidence in their operations and staff by responding quickly and effectively during times of crisis, it has been claimed.

Writing for MyCustomer.com, editor Nik Nesbitt said crisis planning is important for firms of all sizes, as it means customers can be kept informed and on-side in the event of an unforeseen incident.

He cited the example off NHS Direct's response to the recent swine flu outbreak, suggesting that the service had gained public confidence by being on-hand with knowledgeable statements and informed contact centre operatives.

"Because of planning, they were able to placate the public at two stages – in the press and directly over the phone – vastly increasing public confidence and decreasing worry," he stated.

Mr Nesbitt urged firms to consider all channels customers may wish to use to establish contact, whether this be email, telephone or through front-of-house services.

He added: "It is easy to see when organisations have not prepared properly because they are usually left floundering in the media and customers are left with none of the information they need."

The Federation of Small Businesses says the government needs to ease the regulatory burdens placed on small businesses to help them survive the swine flu pandemic.

SMEs can market effectively at trade shows

Tue, 28 Jul 2009 15:27:28 GMT

Small and medium-sized enterprises (SMEs) aiming to attract new customers should consider advertising their products and services at exhibitions and trade shows, it has been suggested.

According to exhibition solutions firm Display Wizard, cutting back in these areas could mean missing out on valuable new trade, something that should be avoided given the relatively low costs involved with creating high-impact, professional displays.

The firm reports that 76 per cent of show visitors attend with a fixed agenda, meaning SME exhibitors have immediate access to a focused and targeted audience.

According to Display Wizard, 80 per cent of attendees have buying responsibility for their firm and around a third make such decisions based upon what they find at trade shows, meaning SMEs are able to reach out to an important area of the market.

With trade shows costing 38 per cent less than sales calls, the firm says there is a clear economic case for attendance.

Display Wizard managing director Diarmuid Beary said: "Participating at an exhibition enables businesses to have the unique advantage over other advertising methods, through being able to demonstrate the quality of their products or services face to face."

The 2009 Marketing Trends Survey by StrongMail Systems recently found that 42 per cent of firms plan to increase their advertising spend during 2009, despite the recession.

Banks urged to judge credit applications on own merits

Tue, 28 Jul 2009 15:26:28 GMT

The banks should be lending to small businesses on a case-by-case basis, the Forum of Private Business (FPB) has claimed.

Commenting after Chancellor Alistair Darling said he was "extremely concerned" about the banks' treatment of small firms, FPB spokesperson Chris Gorman said there was a perception that they were deciding applications "according to an unfair 'tick-box' mentality".

He explained that many of the forum's members felt their businesses were perfectly viable but were being denied loans or overdrafts for bureaucratic reasons.

Mr Gorman added: "We believe that some banks are automatically denying credit to pubs, bars and restaurants, for example.

"We want to see a return of the old-fashioned relationships between small businesses and their local bank managers in order to improve the flow of finance to firms that deserve it at this crucial time."

Earlier this week, the British Bankers' Association (BBA) offered a different perspective, claiming that an increase in lending to the small business sector was witnessed during June 2009.

It reported a £391 million increase last month, something BBA statistics director David Dooks said was indicative of the support of the banks for the UK's network of small and growing businesses.

FSB calls for swine flu help for small companies

Tue, 28 Jul 2009 15:04:28 GMT

Small businesses need additional support to help them emerge unscathed from the swine flu pandemic, it has been claimed.

The Federation of Small Businesses (FSB) has written to the Secretary of State for Health Andy Burnham urging him to ease the pressures on the sector by simplifying the system for reimbursing firms for statutory sick pay.

It has also called on ministers to cease routine business inspections during the height of the pandemic.

John Wright, national chairman at the FSB, said swine flu is expected to have "a serious impact" on the UK, with a more than five per cent fall in UK gross domestic product (GDP) this year alone and up to half of the population infected.

He added: "Although it is still difficult to estimate the full effect of the spread of the pandemic, we know that small firms – which contribute more than half of UK GDP and employ 60 per cent of the private sector workforce – will be very badly hit."

Mr Wright added that the FSB had been working with the Cabinet Office to prepare advice for small firms on how to plan for this emergency, to ensure they have good communications with staff in place, plans for remote working and preparations for a drop in demand.

Earlier this month, absence management company FirstCare reported that a significant increase in the number of staff absences was being seen as H1N1 swine flu virus spreads.

Small firms encouraged to establish online presence

Tue, 28 Jul 2009 14:59:28 GMT

Small business owners have been urged to ensure they market their services to customers online.

Mr Site co-founder Beatrice Hatherley was commenting after research conducted by her website creation firm and PayPal indicated that establishing a website leads to an average 37 per cent increase in turnover.

The study also found that small businesses without a website could be collectively reducing their turnover by as much as £235 billion.

She said it is "incredible to think" there are still so many small businesses in the UK without a website in the modern business environment.

"Our research clearly indicates how valuable it is to have a presence online but it's also understandable how they might struggle with the financial implications," she explained.

She said cost-effective web solutions could help start-ups market using this increasingly vital medium.

Cameron McLean, PayPal's general manager for UK merchant services, claimed consumers are looking to the internet more and more to research which businesses to use for particular services.

He commented: "Online sales are bucking the high-street street trend and businesses should establish their online presence before they are left behind. Not having a website is like leaving your shop-front boarded up or refusing to tell customers anything about the services you provide."

According to the va4growth.com blog, web advertising allows business owners and managers to reach their target markets without the need to face the customer personally or spend too much money on marketing.

BBA reports rise in lending to small business sector

Mon, 27 Jul 2009 11:48:27 GMT

The economic outlook for small and medium-sized enterprises is improving, it has been suggested.

According to the British Bankers' Association (BBA), a £391 million increase in lending to the small business sector was seen during June 2009, as credit became increasingly available.

The BBA reports that almost 50,000 new small business banking relationships were established, while deposits grew by £577 million during the month.

Commenting on the latest figures, BBA statistics director David Dooks, said they provide more evidence of the high street banks' support for small businesses.

He added: "Structured term lending rose by £366 million in June, while deposits and numbers of new business relationships continued to hold up, perhaps reflecting improved business confidence in trading conditions."

Last week, Business Link offered advice to small business owners struggling to obtain the finance they need to sustain and grow their companies.

The service encouraged owners to fully consider every aspect of their application before approaching the banks, identifying exactly why credit is being sought, how it will be used and how the outstanding balance will be paid off.

Business Link advised: "Provide historical financial data, such as three consecutive years' annual accounts. Also, include management figures such as budgets, trend analysis and forecasts to support your business case.

Landlines beneficial to small company images

Mon, 27 Jul 2009 11:46:27 GMT

Small businesses should avoid using a mobile for their main contact number, as this gives out a less-than-professional image, it has been suggested.

George Derbyshire, chief executive at the National Federation of Enterprise Agencies, was speaking after mobile firm O2 reported that nearly 70 per cent of small businesses still have a landline number despite employees spending the majority of their time out of the office.

He expressed his support for this trend, saying that landlines remain important despite the increased mobility of businesses.

Mr Derbyshire said the promotion of a landline number immediately highlights that a business is based locally, which can add an element of credibility to any small enterprise.

In addition, this simple characteristic "heightens the perception of an organisation with a firm foundation", he claimed, which is vital given the significance of making good first impressions.

He added: "The option of having any [landline] number diverted to a mobile gives today's small business owners flexibility on the move and it means that customers and potential customers are more likely to be able to get through immediately – and when it's convenient to them."

According to the O2 study, 25 per cent of those questioned said they now spend just an hour a day at their desks, meaning call divert technology could be particularly useful for them.

Businesses instructed to reduce costs

Mon, 27 Jul 2009 11:45:27 GMT

Business cannot avoid implementing cost-cutting measures to ensure their survival as the economic downturn ensues, it has been suggested.

Paul Smith, chief executive of haart, the independent estate agent, said reducing overall costs "right across the board" is necessary to make companies as strong as possible.

He suggested that such action, while potentially difficult to carry out, can put businesses in a healthier position moving forward.

Mr Smith said that by limiting expenditure, haart has rediscovered the ability to generate good profits on a monthly basis.

He continued: "In our own company, the majority of our senior management and surveyors took a voluntary pay cut in line with the downturn in the market.

"As a result, it has brought our management and teams closer together to find ways of increasing income per head. It's made everyone focus more on profit and loss. The saying that 'turnover is vanity, profit is sanity' still holds good."

Research conducted by PropertyWeek.com last week found that 27.8 per cent of employees in the property industry would accept a cut in pay to help their company.

The other 72.2 per cent of respondents took the view that since they did not cause the recession, they are not responsible for the company's fortunes.

Firms urged to meet health and safety requirements

Mon, 27 Jul 2009 11:43:27 GMT

Small and medium-sized companies have been urged to take their health and safety responsibilities seriously, after a man fell through the roof of a DIY superstore and died.

David Battisson, from CRN Contracts in Birkenhead, was working on the roof of The Range store in Wigan, when he fell ten metres to the floor through a PVC light.

He and a colleague were applying anti-corrosion paint to the bolts on the corrugated roof at the store when the incident took place, on May 27th 2005.

This week, CRN Contracts pleaded guilty to charges under the Work at Height Regulations 2005 and the Health & Safety at Work Act 1974 and was fined £25,000 and ordered to pay costs of £14,086 at Manchester crown court.

Health and Safety Executive (HSE) inspector Warren Pennington said it was "shocking" that basic health and safety procedures were not adhered to.

"CRN Contracts Ltd did not provide adequate supervision of the work. It should have used boards to cover the fragile roof lights, and protected the area around the perimeter of the roof," he added.

"The company also failed to cordon off the floor under the section of roof it was working on to protect the public from the work."

Mr Pennington commented that roof maintenance can be "extremely dangerous" if proper health and safety rules are not followed.

Last month, a spokesperson for the HSE claimed that too many deaths are still occurring in UK workplaces.

FPB urges banks to support hospitality SMEs

Fri, 24 Jul 2009 13:27:24 GMT

Banks must continue to loan to small and medium-sized enterprises (SMEs) in the hospitality sector, according to the Forum of Private Business (FPB).

According to the business lobby group, some lending institutions are automatically refusing to issue credit to SMEs simply on the basis that they are a pub or restaurant.

The FPB warns the sector has been classified as "high risk" by the banks, meaning that SME applications are not being judged on their own particular merits.

It claims that the viability of each individual loan should be looked into on a case-by-case basis, as otherwise secure jobs could unnecessarily be put at risk.

FPB national chairman Noel Guilford said the banks' attitude to SMEs in the hospitality sector at present is "disgraceful".

He added: "Most of these restaurant and pub businesses are viable and will survive but need help over the next few months.

"We have evidence that banks are taking a negative blanket approach to this sector which is directly against what the government is saying they should do."

Mr Guilford called on the government to intervene "as a matter of urgency" to avoid huge job losses in a sector that is "vital to the economy".

Earlier this week, government advice service Business Link urged SME owners to thoroughly plan any applications for bank lending in order to maximise their chances of success.

Small firms instructed to maintain survival focus

Fri, 24 Jul 2009 13:26:24 GMT

It is not possible to say when the recession is going to come to an end, according to one business expert.

In comments which may encourage small companies to continue adopting prudent approaches to business, Beccy Boden Wilks, a spokesperson for the Business Debtline, said firms could be feeling the effects of the downturn indefinitely.

She said the so-called 'green shoots' seen in the economy in recent months were not universally translating to the small business sector

Ms Boden Wilks reported that the number of calls to the debtline was continuing to increase as business owners seek survival support, meaning it is no time for complacency.

She added: "As far as we are concerned, we can't see things getting any easier for the average person on the street, the average consumer, the average small business any time soon.

"There are still more businesses getting into difficulty and feeling the effects of the recession."

On a positive note, PricewaterhouseCoopers has reported a drop in the number of insolvencies during the second quarter of 2009.

Some 4,814 companies became insolvent in the second three months of 2009, representing an 11.3 per cent decrease on the previous quarter.

Firms urged to save by switching broadband provider

Fri, 24 Jul 2009 13:23:24 GMT

Businesses have been urged to check whether they could save money by switching to a new broadband provider.

Edd Dawson, editor of Broadband.co.uk, said that despite the recession heightening the need to reduce expenditure where possible, 50 per cent of web users have not switched provider during the last four years.

Consequently, they will be paying the same rate for the service, he suggested, despite the many advances made in the industry during this time.

Mr Dawson added: "[Businesses] get stuck on a tariff, and can find they are paying twice or sometimes three times as much as they could be.

"They also end up with slower download speeds because they signed up to a cap four years ago. Download limits are generally more generous."

He suggested that it may not even be necessary to switch to secure a better price, as simply negotiating an improved deal with the current provider may suffice.

According to a Consumer Choices report, the average cost of broadband has fallen by at least 37 per cent and the average speed has increased by at least 700 per cent over the last four years.

Firms told to plan bank loan applications meticulously

Thu, 23 Jul 2009 15:40:23 GMT

Banks are more likely to lend to small businesses if they properly prepare an application, it has been suggested.

Business Link advises company owners seeking credit to clearly outline background details of their business such as the ownership and management team, history, location and activities, while it also says explaining the purpose of the application is vital.

"Provide clear aims and objectives for your business, both short-term and long-term. You should also record any major achievements by your business," the advisory service says.

Small business owners should show that they have considered and understood the external and internal risks that affect their business, it is claimed, while also demonstrating awareness of who controls the finances.

Business Link advises: "Provide historical financial data, such as three consecutive years' annual accounts. Also, include management figures such as budgets, trend analysis and forecasts to support your business case.

"Business bank statements should be provided or if your business is a new venture then personal bank statements may help."

Owners are urged to supply details of funding required from the bank and establish the correct amount to borrow, but also be willing to consider all forms of borrowing available, it is claimed.

Finally, they should be clear about the source of repayment and provide details of security to be offered with supporting papers, seeking advice from legal or financial professionals if necessary.

According to the British Bankers' Association, lending to small businesses by the high street banks rose by £287 million in April 2009.

Small firms urged to commit to business travel

Thu, 23 Jul 2009 15:37:23 GMT

Small businesses should continue to travel to support the relationships they have established with partners and clients, it has been claimed.

Philip Carlisle, chief executive of the Guild of Travel Management Companies, said that while technology could facilitate remote meetings between colleagues, these are not always suitable for customers.

He said it was essential that businesses travel as they bid to make the most of their brand, even if this does add to costs.

Mr Carlisle stated: "There's no point the company going bust if it loses customers, it might be good for the environment but it's not very good for the economy."

He claimed that the priority for companies is avoiding going bust, sustaining business and achieving what they need to achieve, rather than minimising their environmental impact by cutting business meetings.

In many circumstances, small businesses may wish to take advantage of mobile technology to manage company affairs from remote locations, according to Expedia communications director Alison Couper.

She said it is important for business decision makers to be connected to the internet irrespective of their location, as it is often necessary to check work emails, make bookings and contact clients and employees.

FPB calls on Competition Commission to protect small retailers

Thu, 23 Jul 2009 15:35:23 GMT

Small business retailers need greater protection from the Competition Commission, according to the Forum of Private Business (FPB).

The forum believes new plans to devise a 'competition test' to prevent the big four brands running local monopolies will make little difference to small retailers that are already struggling to compete.

Asda has welcomed the announcement of the plans, but the FPB says any such move would merely lead to greater competition among the major market players.

FPB chief executive Phil Orford said: "It's all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive.

"I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission."

Instead, he said he would urge the commission to focus its efforts on helping independent retailers, which he described as "the lifeblood of the British high street".

Research conducted by the Competition Commission has indicated that since 2000, sales in supermarkets and large convenience stores have grown by 26 per cent and 19 per cent respectively, during which time small retailers have seen a mere one per cent rise.

Measured approach key for entrepreneurs

Wed, 22 Jul 2009 15:20:22 GMT

A number of characteristics are identifiable in successful entrepreneurs, it has been suggested.

Writing for Duct Tape Marketing, marketing and digital technology expert John Jantsch, said they are not reckless risk takers, rather shrewd individuals who possess and nurture "a handful of traits that are rarely mentioned".

He said entrepreneurs tend to be curious by nature and have an interest in how things work, why particular trends may emerge and how things can be done better.

In addition, Mr Jantsch noted that they are risk averse, wired to spot opportunities and confident that something can be made from them.

"They are often better at letting something that is clearly a bad idea go, limiting the ultimate risk," he suggested.

Successful entrepreneurs are often effective planners, completely thorough in their approach, he added, while they are also honest and trustworthy.

Mr Jantsch added: "Successful entrepreneurs have an uncanny ability to look at every misstep as a learning opportunity. The key question is what did we learn from this, as opposed to why did this fail?"

Research conducted by Barclays recently indicated that entrepreneurs have continued to form new businesses despite the onset of recession.

The firm reported that the number of new business start-ups remained high in 2008, rising from 432,300 in 2007 to 436,600.

FSB says business growth possible through graduate hires

Wed, 22 Jul 2009 15:18:22 GMT

Up to 5,000 new internship placements should be created in small businesses to tackle soaring graduate unemployment, it has been suggested.

The Federation of Small Businesses (FSB) says graduates entering the job market this summer are facing the toughest employment conditions in years, meaning opportunities to work for small companies need to be exploited.

According to FSB research, more than 20 per cent of such firms would take on a graduate, yet nearly half are unaware that they can run internship schemes.

Consequently, the federation is urging the government to allocate £3 million to market and develop internships and jobs within businesses.

It says such a move would save the government around £600 for each graduate on the scheme and not claiming unemployment benefits.

FSB national chairman John Wright claimed that in a graduate internship scheme, individuals can offer key skills to help businesses move forward while at the same time ensuring they are learning new skills and not unemployed at a crucial time in their careers.

He added: "Small businesses are the sector to create and retain jobs and act as a bridge to formal employment. Around 20 per cent say they want to take on skilled graduates.

"The government must invest in linking up small businesses and graduates now to prevent graduate unemployment spiralling any further."

Two months ago, a Business Link survey indicated that small businesses are focusing on growth, despite the current economic climate.

Small companies urged to tackle absenteeism

Wed, 22 Jul 2009 15:17:22 GMT

Small firms should be aware of the dangers of absenteeism and keep up to date with plans to combat this expensive problem, it has been suggested.

Roger Bibbings, occupational safety adviser at The Royal Society for the Prevention of Accidents (ROSPA), said he welcomed moves towards 'fit notes', which detail the tasks an employee is capable of carrying out, as this will require communication between employees and their managers.

However, he said that for such a regime to work, employers need to have good occupational health support in place so they can properly assess the circumstances of their staff.

Mr Bibbings cited 'back-to-work' interviews as an example, saying they can help employers establish any underlying issues regarding a worker's ill health, for instance if there are any work factors which may be causing illness or making it worse.

He added: "If the recent reduction in days lost is to do with employers following this sort of guidance then it's a job well done.

"But there many are other factors at work of course. And as well as absenteeism, we must not forget 'presenteeism', that is employees soldiering on with poor health when they should be getting help."

According to the Chartered Institute of Personnel and Development, a sharp decline in employee absence in the private sector has seen the gap between public and private sector absence widen from 2.6 days per employee per year to 3.3 days.

Social networking sites engage all ages

Tue, 21 Jul 2009 15:43:21 GMT

Eight out of every ten internet users in the UK visited a social networking site during May 2009, new research has found.

In news which could interest firms considering integrating social media into their sales and marketing campaigns, a survey by comScore found that 29.4 million people in the UK accessed a social networking site during the month.

The average visitor spent 4.6 hours on the networks, with the highest penetration found in people aged between 25 and 34 years of age, with 89 per cent visiting a social site.

Reach among other age groups included 15-24 year olds (86 per cent), 34-44 year olds (79 per cent), 45-55 year olds (77 per cent) and people over the age of 55, where 67 per cent visited social websites.

The study also found that Facebook was the most popular social network, with 23.9 million visitors.

Mike Read, senior vice-presidents and managing director of comScore Europe, said there is a "misconception" that social networking sites are the "preserve of the young".

He added: "While those under 35 years old are certainly the more prevalent users, there is both a sizeable and heavily engaged audience of those 35 and older as well. In fact, advertising on social networking sites has a better chance of reaching these older demographics than site categories such as business and finance."

A study by StrongMail Systems has found that 58 per cent of firms planning to expand their marketing budgets are looking to increase their spending on social media.

Firms to increase or maintain marketing spend

Tue, 21 Jul 2009 15:42:21 GMT

New research has found that 85 per cent of businesses are planning to either increase or maintain their marketing spending during the rest of 2009.

The 2009 Marketing Trends Survey by StrongMail Systems found that 42 per cent of firms plan to increase their search marketing spending, while 43 per cent are set to maintain their current levels of investment.

Businesses also showed a high level of confidence for the rest of the year, with 34 per cent predicting that customers will spend more during the second half of 2009, while an additional 31 per cent expected outlay to remain at the same level.

Of companies planning to increase their marketing spending, 81 per cent showed a preference to increase their budgets for emails, followed by 58 per cent for social media.

Bill Wagner, executive vice-president of business operations at StrongMail Systems, said: "The fact that planned investments in email marketing have actually increased in the past six months at the expense of more traditional marketing channels speaks to email's status as the most economical and effective tool in a direct marketer's tool box.

"Email marketing's ability to attract investment in tough economic times will only increase as companies leverage solutions to improve the relevancy of their messages and tap the power of social media."

For companies looking to increase their social media spend, they may be interested to read that research by comScore found that nine out of ten 25-34-year-old Brits visited a social networking site during May 2009.

Fraud at record levels in the UK

Mon, 20 Jul 2009 16:07:20 GMT

Small businesses across the UK should keep a close eye on their data security as new figures show there were a record number of fraud cases during the first half of 2009.

The Fraud Barometer by KPMG found that over £630 million of fraud by value was seen in courts across the country, which was the highest rate in the 21 year history of the report.

Hitesh Patel, partner at KPMG Forensic, has warned small firms that worse "is yet to come" as it will be "a number of years" before the full impact of the current recession will be seen in fraud statistics.

"Hard times mean more people driven to fraud by personal pressures, and more investors willing to believe in cooked up investment schemes," said Mr Patel.

"Companies too remain vulnerable to the threat within - their staff - as evidenced by the £150m of fraud that managers have been tried for in the last six months alone."

The fraud situation across the UK remains "serious", he added.

Recent figures from the British Crime Survey found the amount of card fraud in the UK increased by four per cent in 2008, compared to figures for the previous year.

There were 2.8 million fraudulent transactions totalling £610 million, the Daily Mail reported.

Mobile marketing recommended by expert

Mon, 20 Jul 2009 16:06:20 GMT

Small businesses should consider integrating mobiles into their direct marketing campaigns, according to one industry expert.

Mike Wehrs, president of the Mobile Marketing Association has told Mobi Thinking that mobile marketing can offer the best return on investment in comparison to other channels.

He stated that "at least 50 per cent" of the global population owns a mobile phone and it is one item that people "will go back and get when forgotten".

The expert has advised small businesses they could be missing out by not taking advantage of mobiles in their sales and marketing campaigns.

"Mobile is the only channel that allows a brand to reach target customers for the 18 hours a day it is in their pocket or purse," said Mr Wehrs.

"People stop what they are doing to deal with incoming messages and alerts - what other channels can you say that about?"

Mobile marketing is opening up a range of new opportunities which will be areas to watch in the industry in the next year.

Gareth Stoten, general manager at Pitney Bowes UK and Ireland, recently told small businesses not to forget about traditional marketing methods such as mail and inserts as digital channels are not always engaging.

London small businesses looking to expand

Fri, 17 Jul 2009 14:17:17 GMT

Many of the capital's small businesses are still looking to grow despite the recession, according to new research.

Business Link's new Diverse Business Confidence Index highlighted that 84 per cent of firms based in London are looking to expand their operations over the course of the next 12 months.

Despite this, the survey revealed the extent to which small firms are being affected by the recession, with two-thirds of business owners questioned saying the downturn is still impacting on them and almost two-fifths stating that it has significantly affected their budgets and expenditure.

"These results are an encouraging sign in these turbulent times - but they don't come as a surprise to us. We regularly survey our clients on how they're managing through the recession and we're seeing a clear trend emerge of a sector that is refusing to get bogged down in the doom and gloom," commented Patrick Elliott, chief executive of Business Link in London.

He added that many entrepreneurs are seeking out new markets and growth opportunities as a way of coping with the recession.

Also commenting on the findings, London mayor Boris Johnson said that small businesses provide half of the capital's jobs and it is therefore vital they are given support to help them succeed as they will be a "spring board" for economic prosperity when the upturn comes.

Recent research by uSwitchforBusiness.com suggested that the recession could lead to an upturn in the number of new small businesses as redundant workers set up their own firms rather than finding new jobs.

FPB critical of Ofgem climb down on rollover bills

Fri, 17 Jul 2009 13:36:17 GMT

Small and medium-sized enterprise (SME) owners are set to remain tied into costly utilities deals after Ofgem backed down on plans to prohibit rollover contracts, according to the Forum of Private Business (FPB).

In what comes as a blow to the sector, the energy regulator has conducted a u-turn after originally declaring that suppliers should not be allowed to automatically roll over fixed-term contracts from one year to the next.

Following pressure from the major energy firms, they are likely to be permitted to do so for up to a year at a time, the FPB says.

Suppliers have argued that banning rollover contracts would create additional costs for both themselves and their business customers, but FPB chief executive Phil Orford insists that SME owners should have "as much control as possible" over their utility bills.

He added: "It's disappointing to see Ofgem stepping back from its initial stance on protection for small business customers. Allowing year-long rollover contracts would continue to stifle competition within energy markets.

"We want Ofgem to revert to its previous commitment to end rolling contracts for all businesses with 50 employees or fewer and turnovers not exceeding €10 million (£8.6 million).

FPB member Jackie How, a guest house owner from Paignton, Devon, said rollover contracts mean a very high energy bill - at least half as much again as it should be.

Ofgem regulates the electricity and gas markets in Great Britain.

Businesses told to focus upon employee engagement

Fri, 17 Jul 2009 13:34:17 GMT

Businesses need to fully involve employees in the future of the firms they work for if they are to innovate and take advantage of new commercial opportunities, it has been reported.

According to the MacLeod Review of employee engagement, greater cooperation and collaboration within UK firms can help drive productivity and growth as the UK emerges from recession.

The independent review urges bosses to ensure that the relationship between employees and employers is at the centre of successful business plans, in order to make staff members feel fully engaged at work.

David MacLeod, who led the government-commissioned review along with Nita Clarke, said companies need to unleash the potential of people at work and enable them to be the best they can be.

He added: "Whether we are in a downturn or in better economic times, engagement is a key to innovation and competitiveness. Employers in all parts of the economy can make a success of employee engagement through culture change, rather than investing significant financial resources."

Ms Clarke added that by respecting the contribution employees can make and ensuring they are fully involved in developing their organisation's future, employers "can help unlock their full potential".

Last month, research conducted by Ashridge Business School indicated that many employers are at risk of misunderstanding the motivations of younger workers.

Email marketing can help small companies

Fri, 17 Jul 2009 13:32:17 GMT

Email marketing can help businesses create advertising campaigns that can be quickly and easily refreshed in order to maintain the interests of clients and customers, it has been suggested.

According to Paul Elliott, Business Link adviser for the East Midlands, e-marketing continues to provide businesses with a cost-effective option and has become the primary marketing channel for many small businesses.

This is despite the worldwide cuts in marketing budgets, rather than as a result of it, he suggested, as small firms recognise the potential benefits of advertising in this way.

Mr Elliott commented: "It is always a temptation for businesses to cut costs in the two areas where it is very difficult to monitor return on investment: training and marketing.

"What is very interesting in this recession is that e-marketing and ecommerce has really come on since the last recession."

All businesses need to remember with e-marketing is to keep materials focused on the consumer, he added.

A recent trend report from Epsilon showed that email marketing deliverability remained high in quarter one of 2008, while a survey form the Institute of Direct Marketing indicated that business to business e-marketing budgets are set to grow as the economic downturn ends.

Small firms urged to help employees switch off

Thu, 16 Jul 2009 16:30:16 GMT

Some small business employees need greater support from their bosses to ensure they can maximise the use of their holiday time, it has been claimed.

Lisette Howlett, managing director of HireScores.com, said some people choose to continue performing work duties while they are away from the office because this helps them to manage stress levels, but others feel as if switching off for a week could be detrimental to their position at work.

She said some workers – even managers - fear that oversights or errors they have made prior to going away may be discovered, but they will not be there to resolve the issue, potentially causing conflict with other workers.

Ms Howlett stated: "There is this fear driven aspect of constantly keeping in touch and constantly being part of the job.

"They are the ones who need support from the organisation and managers to be able to take better holidays. They should organise themselves before they go, they should have better briefing notes and properly delegate their tasks."

According to research conducted by Hotels.com, Britons spend a quarter of a billion hours a year working on holiday.

The firm reported that 55 per cent find it hard to switch off from work and rely on mobile technology to keep in contact with the office.

Swine flu planning essential for businesses

Thu, 16 Jul 2009 16:28:16 GMT

Small businesses must ensure they are properly prepared for an outbreak of swine flu, according to the Forum of Private Business (FPB).

The FPB claims up to a quarter of the UK's workforce could be absent from work at any one time, having a potentially devastating effect on smaller employers.

Small company bosses have been urged to try and minimise face-to-face contact during a pandemic by using home working where possible and making use of video links and teleconferencing.

Firms should also look into the possibility of using social networking sites such as Facebook and Twitter as a way of communicating and collaborating, the FPB suggests.

Employees who are suspected to be suffering from swine flu should be ordered to stay at home, while staff contingency plans should be put in place, it is claimed.

FPB's director of finance and administration Nick Palin said: "As a business owner, the more that you can put into preparing before a pandemic happens, the better placed your business will be to survive it unscathed.

"I think swine flu is a serious issue and one which needs some careful consideration by small businesses as, with few employees, they could be particularly badly affected."

Earlier this month, Aaron Ross, chief executive of FirstCare, told the Chartered Institute of Personnel and Development that there is a "direct correlation" with the spread of the H1N1 strain of swine flu and increased absenteeism.

Small firms told not to forget about direct mail

Thu, 16 Jul 2009 16:25:16 GMT

Small businesses have been urged not to forget about traditional methods when seeking the right marketing mix.

Gareth Stoten, general manager at Pitney Bowes UK and Ireland, said that while online channels such as social networking are "a hot topic", it is the traditional print and mail channels that are driving people to make web purchases.

He was commenting on research conducted by the marketing firm, which indicated that 60 per cent of consumers believe offline marketing in the form of addressed mail or direct response advertising is most likely to get them to visit the website of a company they have not bought from before.

Mr Stoten said a digital presence on its own does not provide a strong enough impetus for brands seeking to make a connection with prospects.

He added: "Marketing activities such as mail, inserts and direct response advertising can help companies to reach new customers in a very targeted and personal way and then entice them onto a website.

"Digital channels are all too often just not as engaging, and targeting as precisely can be difficult given the lack of depth and detail in the online prospecting data that's available."

According to Mr Stoten, mail remains "a particularly powerful tool" for moving consumers to take action – either offline or online.

Writing for B to B magazine last week, eti Sales Support chief executive Michael Falkson claimed traditional methods can be used effectively as part of campaigns to raise consumer awareness.

Small firms urged to take crime risk seriously

Wed, 15 Jul 2009 14:15:15 GMT

Small business owners should ensure that company premises and property are kept as secure as possible, following reports of rising crime targeted at private sector operators.

Insurance firm AXA reports that 64 per cent of small businesses claim to have been the victim of a crime during the last 12 months, a rise of seven per cent on the previous year.

Worse still, year-on-year numbers of crimes against businesses have increased by around ten per cent during the last six months as the recession has deepened, it is claimed.

Crime that tends to occur more frequently during periods of economic downturn such as burglary, staff intimidation, arson and assault has been on the increase, AXA reports.

The Federation of Small Businesses (FSB) has claimed it is imperative that company owners take notice of these statistics and prioritise security considerations.

FSB home affairs chairman, Mike Cherry, said it was also essential that the police take reports of crime against businesses seriously.

He added: "Small businesses need to know that the police are listening to the businesses on their beat, and that they will fight crime effectively with the information they are given."

Earlier this year, Neil Munroe, external affairs director for Equifax, claimed levels of fraud activity tend to rise in particular during periods of recession.

Dragon calls for greater support for science and tech firms

Wed, 15 Jul 2009 14:13:15 GMT

Greater recognition is needed for research and development-based small companies in the UK, according to one leading business figure.

Recruitment specialist James Caan, a star of BBC2's Dragons' Den, told attendees at the launch of the new 'iawards' initiative that the UK needs to focus on building a strong small business base in the science sector, reports smallbusiness.co.uk.

The entrepreneur suggested that too much reliance has been placed on the financial sector over the last ten to 15 years – the dangers of which have been highlighted by the recent banking crisis.

Mr Caan noted: "For the UK to overcome our current challenges we need another solution.

"We need to give those small and medium-sized enterprises developing products [in science and technology] the recognition they deserve. That way we will encourage more people to come forward and join the sector."

Last month, the government announced plans for a state-backed venture capital fund, designed to raise money to invest in high growth companies.

Up to £150 million in support will be offered by the government to the UK Innovation Investment Fund, which will also be supported by finance from the private sector.