By Claire West
The Coalition Government is failing to assist new and existing entrepreneurs. That’s the conclusion of a new review of the policy and actions of the Coalition Government undertaken by the distinguished enterprise specialist, Iain Scott,creator of Cognitive Business Therapy.
Scott has been tracking the policies and actions of both the Conservatives and Liberal Democrats, from election manifesto to present day, and has concluded that: "There is a significant gap between rhetoric and reality".
He said: “The rhetoric has been all about the private sector creating new jobs. But the reality is, the majority of new jobs come from business start-ups and this appears to have fallen off the Government Agenda and this has been confirmed by today's (28th October) White Paper”
Scott stated: "It is very easy to identify what has been undone - such as the closing of Regional Development Agencies and Business Link - but not what has actually been done to help usher in what David Cameron has called a
"new decade of enterprise. The new White Paper is disappointingly vague and is no more than a tidying up exercise after the cull of the quangos. It is
frankly bizaare as it fails to recognise the importance of new business starts as a driver of the economy".
He continued: “Government speeches focus on the role of the private sector, with the emphasis from Osborne very much on ‘big business’. But the economic reality is that big business traditionally cuts jobs in a downturn whereas new-start businesses actually take people on.”
Scott added: “Up to 50% of new jobs can be created from new businesses and yet entrepreneurship seems to have vanished from the Government’s agenda . "
As further evidence of the Government’s confusion about entrepreneur support, he cites the today's White Paper from Vince Cable's Department for Business Innovation and Skills and the fact that most enterprise development work in the Regional Development Agencies has ceased.
Scott's research indicates there will be a growth in what he terms "Accidental Entrepreneurs "- people who create a job for themselves either because they have no desire to work for anyone else or no option.
This group is being increasingly recognised in the USA as a potential powerhouse for innovative growthbusinesses - but says the confused policy will make it harder for people to move from employee to employer precisely at a time when they need encouragement.