Last year saw businesses closing at the rate of around 100 a day, so it’s hardly surprising that the business community is being cautious about what is in store this year.

There may be signs that the economy is improving, but confidence among entrepreneurs remains shaky.

It is against this background that I am launching the Entrepreneurs’ Business Academy (EBA) to provide a forum where budding entrepreneurs can learn from the experts, network with their peers, and make their ideas a reality.

People may question the timing, particularly if 2010 turns out to be as volatile as forecasters suggest, but it will be a make or break year for a number of companies and I believe the academy will be capable of helping the seasoned business owner as well as up-and-coming entrepreneurs to weather the storms.

The academy will have the backing of high-profile entrepreneurs and experts and will provide the tools and a wealth of advice to those owners wanting a deeper insight into developing a successful company.

Yes I will be closely involved and will, for example, be talking about the techniques I employ to maximise sales, and the know-how to turn any business around.

I want the academy to provide an invaluable experience to emerging entrepreneurs, current owners of SMEs, professionals re-launching their careers, and ultimately, the man or woman with an idea, and the courage to make it a reality.

I was interested in a recent Dun & Bradstreet survey indicating that 90pc of small and medium enterprises (SMEs) fail because business owners lack all round knowledge about how to run the enterprise.

These disturbing findings show that the UK’s entrepreneurs still need a helping hand and with this in mind, I’d imagine any form of advice would be welcomed with open arms. After all, what entrepreneur can honestly say he or she knows it all?

The problem with being the boss is that there is no one to guide you and there’s a preconception rooted within entrepreneurs that asking for help signals failure.

It’s actually quite the opposite. Asking for advice in fact reflects a smart mind – one that will go far.

Even I’m still learning. At the age of 40 I went to Harvard to study the Advanced Management Program, a course that has proved invaluable. I’m still making use of the content.

It just goes to show you can never stop learning – irrespective of age or where you are in your career.

The EBA launches with the first event on March 20 when myself and my team of “Millionaire Mentors” will be making the first presentations.

There are still some spaces available. Details at www.the-eba.com

* James Caan is founder and chief executive of Hamilton Bradshaw and founded and ran recruitment group Alexander Mann between 1985 and 2002. Please send your questions to askjames@telegraph.co.uk

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Nothing like a bit of blue-sky thinking

by admin on February 19, 2010

Nothing like a bit of blue-sky thinking to brighten business prospects. The General Election season is quickly gathering pace. The political parties are engaged in either leading with or misleading about their ultimate post-election intentions and plans.

Business organisations and lobbyists are mulling over the contents of their own manifestos. They face the same dilemma as the politicians, how to handle what could be a double-dip recession at a time when government spending and borrowing is out of control.

Business will be on the receiving end of whatever unpleasant tax or spending medicine is doled out, while the new administration will be looking to the industrial and commercial sectors to deliver the growth the economy so badly needs. Some task.

But it is not too late for business to go on the offensive and take the opportunity for a bit of blue-sky thinking in their wish list to the politicos.

The British Chambers of Commerce has taken a modest stab by suggesting a reversal of last year’s reduction in VAT and increase in National Insurance contributions (NICs).

It wants next year’s increase in NICs abandoned and a one percentage point increase in VAT substituted. In short, shift the tax-raising burden from employers and employees to consumers.

The arithmetic works in favour of business, representing a saving of £5bn against an additional £4.5bn yield from VAT – but as a well-known jingle points out, every little helps.

There is of course an element of special pleading in the Chambers’ submission and arguments for shifting the basis of one particular tax yield. Nonetheless, the suggestion marks a departure from manifesto convention.

Reductions in government spending along with less red tape and tax relief for the small businessman have traditionally been the staple diet in the business submissions around election time to the political parties.

There is scope for variations on the BCC theme. The credit crisis and the flow of so-called initiatives from Government after the banks put up the shutters to help small businesses raise finance was a combination of a knee-jerk reaction and do-goodery.

In the second year – or maybe third for some – of the credit crisis there are lessons to be learned from the failure of some of the schemes and the rules attached to them without producing another complex set of arrangements.

The age of the “big idea” may have been consigned to the “something to forget” in the history books, but perhaps the time is ripe for something more practical like giving small businesses a tax holiday to encourage more investment, start-ups and job creation.

The small business organisations and lobbies might also achieve more if they temporarily, at least, formed a coalition to make a joint submission. There should be strength in numbers.

http://www.workfromhomeinuk.com

http://www.telegraph.co.uk/finance/yourbusiness/

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Just when you thought it was safe to come out into the open. As if it weren’t enough that the euro is crumbling, that the banking sector is still vulnerable; that Britain is steeling itself for its biggest spending squeeze in living memory, along comes Barclays Capital with some really bad news.

Having slid its slide rule over Britain’s demographics, it is warning that the real threat to the economy is not the fallout from the current financial mess, but the weight our ageing population will impose on the budget.

It is hardly a new warning: economists were getting hot under the collar about this decades ago. Back in the early 1990s it was all the OECD and IMF ever talked about. In a few years, they said, the baby boomers will retire and before you know it Britain, and for that matter most of the Western world, will see the proportion of its population in a retirement balloon.

The consequences are depressingly predictable: the budget deficit will climb higher and higher as those pensioners collect their retirement and medical benefits – all to be paid by a shrinking core of taxpayers.

The difference between then and now is that the squeeze is finally starting – this year, according to Tim Bond of Barclays. The bank forecasts that in a relatively short space of time, the interest rate on long-dated gilts – which in turn determine interest rates throughout the economy – will rise from around 4pc to well over 10pc. It is hard to overemphasise the significance of this sea change. Put simply, for the next decade, life will become increasingly expensive for the average household, squeezing ever deeper into their incomes. Standards of living will diminish.

The analogies with the financial crisis are plain to see: for years, Britons have lived beyond their means, financing it by, in effect, borrowing off future generations, whether through debt, by creating unrealistic pension obligations or social welfare systems that simply cannot be funded without an ever-greater contribution from the working population. Demographics is destiny, they say, and the statistics suggest the UK is destined for a major squeeze.

As if evidence were needed, it was provided in graphic form yesterday by BT, which admitted its pension deficit has now risen to a staggering £9bn. Shocking as this is, it is only a microcosmic example of what has happened across the UK and other Western nations over past decades. Once the financial crisis is well and truly over, the time will soon come for Governments to work out how on earth they intend to honour these unwise contracts without consigning vast numbers of their population to economic stagnation.

http://www.askhowtoearn.com

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/

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New media, new politics?

by admin on February 12, 2010

How bloggers and new media will make their presence felt in the coming general election.

You can see why the political parties are nervous about the general election. The media playing field on which it will be fought has a new, unfamiliar terrain thanks to online competition. Local newspapers may have closed or slimmed down, but political bloggers have forced politicians to rethink their relationship with the press.

What was once a cosy, exclusive Fleet Street corps of lobby reporters must now include irreverent, self-made stars of the blogosphere such as Guido Fawkes and Iain Dale. And new technology, from the online video that exposed Alan Duncan’s belief that MPs were forced to live on “rations” to the Conservatives publishing shadow cabinet expenses in real time, has changed the public’s expectations.

Set-piece campaigns, for instance, are now more problematic than ever before. A £500,000 Conservative poster campaign featuring an apparently airbrushed David Cameron was intended to get the election year off to a flying start. Within a few days, dozens of photoshopped spoofs appeared on MyDavidCameron.com. But new media also presents politicians of all persuasions with a chance to talk more directly to the public than ever before. Tom Watson, Labour MP for West Bromwich East, is one of many who have become adept at using micro-blogging website Twitter to speak simultaneously to constituents and the media.

Mr Cameron himself has assiduously used websites such as Mumsnet to reach out directly – with varying levels of success – to specific groups of voters.

And blogging tools and idioms, too, have allowed nimble new pressure groups such as the TaxPayers’ Alliance, widely seen as a deniable attack-dog of the Tory Right, to emerge.

The fact remains, however, that the audience for political blogs is fairly limited. It may no longer be possible to dismiss them as a small band of bedroom obsessives poring over the traditional media’s droppings, but newspapers will still lead in setting the tone of the popular campaign.

Yet while many newspapers will still drip daily scorn on Gordon Brown rather than Mr Cameron, the social media will also play a key role. The internet, after all, can provide good copy. It is for their impact on the sociology of the political class and the Fourth Estate that this generation of political bloggers will be remembered.

Since the 2005 election, we have raced past the tipping point. Facebook has 23 million British users. About half of the eligible voters are social networkers, sharing and seeking recommendations among peers rather than trusting broadcast messages. The real contest is not the three-way blogs/newspapers/politicians fight, but how effectively each can cast its bait into the social networking sites, and who will have the greatest effect.

So what can we expect from this campaign? There will be widgets explaining tactical voting options to more people than ever before. As a result, the numbers voting against parties rather than for them will increase. Small parties without the resources to hit doorsteps may use these tools to reach that swelling protest vote.

The major parties will have “deniable outriders” to do poisonous negative campaigning on their behalf. Politicians will get personally savaged. There will be more tenuous attack-oriented arguments – ones that journalists wouldn’t have touched in the past.

The most interesting contribution social media may make is that it could offer the Tories an opportunity to project themselves as a responsible government-in-waiting. Tory strategists have already acknowledged that public pessimism may hurt them: if things really are that bad, the Conservatives know there’s a risk that the public could put aside their distaste for Gordon Brown and stick with the devil they know.

This will be a “downswing” election dominated by spending cuts rather than promised tax-handouts. Being positive will be difficult, and attack-bloggers won’t exactly help. So to sell the idea that responsible positive action is possible in a restricted economic climate, parties need a “big idea”.

The Tories’ “post-bureaucratic age” narrative relies heavily upon dynamic collaboration, a hallmark of the social web. It aims to apply open-source thinking to convene good judgment from a disparate community and to cut waste by reducing pen-pushers and consultants and by automating processes.

One of the brains the Tories have turned to is MySociety founder Tom Steinberg. His fingerprints appear to be all over shadow culture secretary Jeremy Hunt’s pledge of £1 million in Cabinet Office funding to the best idea for crowd-sourcing public intelligence.Several politicians would be tempted by the reflexive offer to let voters “have your say”, but this is a cannier step. Mr Hunt is looking to get the public to help interpret and re-present government data.

The Conservatives need the social web to help create a positive, reassuring buzz around them. Offering a narrative that breaks the economic stalemate may be Cameron’s brightest hope. Playing a part in that may be the real impact that social media has on the 2010 election.

Paul Evans blogs at blog.localdemocracy.org.uk

http://www.telegraph.co.uk/news/election-2010/

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Chief executives champion work experience

January 26, 2010

Securing work experience can be pivotal to a young person’s ability to pick the right career path for them, research has found.
Securing work experience can be pivotal to a young person’s ability to pick the right career path for them, research has found.
Almost two-thirds of all teachers polled by think-tank the b-live Foundation said that [...]

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Buy-to-let boost as demand for rented homes is up 24pc

January 26, 2010

Demand for rented homes is outstripping the supply of properties available to let, research claimed today.
Demand for rented homes is outstripping the supply of properties available to let following a rise in reluctant tenants, research claimed today.
The Association of Residential Letting Agents (Arla) said the number of homes available to let was falling, while demand [...]

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McDonald’s creates 5,000 jobs in UK

January 23, 2010

McDonald’s creates 5,000 jobs in UK after record sales in 2009.
McDonald’s will create 5,000 new jobs in the UK this year after seeing an 11pc rise in sales over 2009, chief executive Steve Easterbrook said on Friday.
The fast food chain, which has 1,193 outlets in the UK, saw sales rise by 11pc in 2009.
Mr Easterbrook [...]

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British Gas’s ‘listening panel’: just hot air?

January 22, 2010

Britain’s biggest energy supplier is inviting business owners to apply to join a new “listening panel”. The lucky hand-picked few will have “unprecedented access” to British Gas and its executives, we are told. They are to be flown to offshore gas fields, winched up gas-fired power stations and dazzled by energy trading rooms.
If they survive [...]

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United Utilities to cut dividend and jobs

January 22, 2010

United Utilities has warned that it will have to lower its dividend by 12.5pc and make more job cuts, after accepting the regulator’s decision to reduce customer bills over the next five years.
The FTSE 100 company said it has already cut 500 jobs and more will go as it undertakes a large cost-saving programme, primarily [...]

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Buying a home costs four times as much

January 21, 2010

Buying a home costs four times as much as it did half a century ago in real terms, according to research by Halifax.
Average house prices, allowing for inflation, have increased 273 per cent in the past 50 years, making homes increasingly unaffordable.
A typical home could be bought for £2,507 in 1959, the equivalent to £43,713 [...]

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