By Claire West
Responding to Sir Tom Hunter’s comment that Scotland is facing a declining rate of business start-ups, David Matthewson, Scotland sales director at specialist business finance provider, Bibby Financial Services, said:
“It is discouraging to see that business start-up rates in Scotland have fallen significantly below UK rates last year, reaching their lowest level since they began to be recorded 10 year ago.
“There is no doubt that the global economic slowdown has led to reluctance amongst would-be entrepreneurs to start up businesses and invest in new enterprises, which has traditionally been lower than in the UK. This low investment activity is enhanced by the uncertainty that lies ahead in terms of cuts in public sector spending, funding options, and tax breaks for businesses. This is very concerning, considering that new start-ups have great potential to drive economic growth and boost employment within the region.
“Taking the plunge and starting up a new business when faced with a turbulent economy may seem overwhelming but sometimes hard times can be turned into an opportunity. Despite the current volatility of the market, budding entrepreneurs with the right attitude and ability to think differently can gain access to great opportunities and pave their own way for success.
“Persistence, passion, and hard work are of course key to success, however cash flow is, without a doubt, the lifeblood of business and well-organised finances can make all the difference between boom and bust in those crucial first months. It is vital for new start-ups to ensure they have sufficient cash flow plans to help get their business off the ground and enable it to grow and flourish. This means not sticking to traditional routes, but rather looking at all the funding possibilities open to them. There are challenging times ahead for any aspiring entrepreneur, but with adequate funding in place, they can reduce the burden of cash flow problems and make their business dreams a reality.”
Alternative cash flow solutions, such as invoice finance, can ensure an immediate injection of cash into the business against the value of outstanding invoices freeing up vital cash flow. Bibby Financial Services is committed to supporting businesses right from day one and stabilising their cash flow by providing invoice finance solutions.