The majority of Britons do not consider how technology could shape a work/life balance when considering whether or not to launch their own business, according to research by web hosting provider Fasthosts Internet.

The survey of 1500 UK adults found that only 14 per cent would consider the impact of technology such as smartphones, notepads and Internet applications, before concluding whether or not to launch a business. Poor economic factors and fear of losing money remain the primary reasons for reluctance to start a new project. Fasthosts advises budding entrepreneurs to speak to technology providers from the very outset, as web-based tools and eCommerce can often enable far more flexible working than many realise, giving more opportunity to get a new business off the ground and growing.

When asked about the main factors for consideration in whether or not to launch a business project, only 14 per cent would look into what impact technology could make on their work patterns.  This is despite one in four people having doubts about their ability to cope with running a business effectively. In scoping a business idea, the most popular groups to consult for strategic advice are banks (35 per cent), potential clients (31 per cent), stock suppliers (27 per cent) and then friends and family (25 per cent).

Stephen Holford, marketing director, Fasthosts Internet, commented, “It is vital for anybody thinking of starting their own business to know what is technologically possible from the very start. Selling goods and even services online is often incorrectly regarded as beyond the reach of non-technical people. Family responsibilities and financial aspects are always pressures that need to be considered. However, the huge range of Internet-based tools available for mobile working means that work patterns can be far more flexible and mobile than ever before. It is vital that before deciding if a start-up project is achievable, one looks carefully at what technology is available to help”.

Following the Royal Mail’s rate change announcement at the end of March, it appears that four in five (81 per cent) of Britain’s SMEs, amounting to 3,645,000, believe that May’s postal rate change will have a negative impact on their business. Of these, seven per cent say that they fear their business may not survive the threat.

National research conducted amongst 1,000 SMEs by Pitney Bowes found that 15 per cent said they’d consider moving to a franking machine to avoid the price hike. However, with first class stamps rocketing by 30 per cent, almost half (45 per cent) of the SMEs surveyed claimed that they will be sending less post, or changing how they communicate and using email to compensate for the lack of postal communications. Finally, 25 per cent said that they would start using second class post more frequently.

The research also revealed that many SMEs were entirely unaware of the changes. Almost three quarters (69 per cent) of those polled said that advance information provided to them was ‘poor and confusing’, and they were not aware that the changes would be so significant. Alarmingly, 17 per cent admitted that they didn’t know where to go for more information on the subject.

Phil Hutchison, marketing director of Pitney Bowes UK, said: “The Royal Mail’s announcement is inevitably going to have an effect on Britain’s SMEs. One in two (50 per cent) SMEs with between 101 and 200 employees fear that the postal rate change will have a ‘big impact’ on their businesses, forcing them to change the way that they communicate with customers or even worse put their business under threat.

“However, it’s important that businesses don’t panic and abandon physical mail in a bid to avoid high postage rates; physical mail still has an important part to play. Successful customer communications depend on a delicate balance of message, medium and timing. Although digital communications undoubtedly have their place, traditional print campaigns are still critical for most businesses and are likely to remain so for many years to come.”

Pitney Bowes is urging SMEs to take the opportunity to review their entire communications strategy, and for physical mail encouraging business to move to metered mail, which can cut costs immediately. In addition to significant instant time and money savings, metered mail also delivers a range of benefits such as better ‘open rates’ and presents a more professional image to customers, as well as enabling users to access a range of other bulk mailing discounts. Alternatively, those that want to stick with stamps can often make savings by folding documents into letter format, which for first class can reduce costs from 90p to 60p and from 69p to 50p for second class.

Hilton-Baird Financial Solutions has announced a new strategic partnership with The FD Centre.

This collaboration will see both businesses working closely together in order to assist the nation’s SMEs. The FD Centre provides access to the highest calibre of finance directors, making them well placed to support the SME community. The idea is to collaborate in order to provide owner managers with direct and expert access to the necessary cash flow solutions. This will be delivered alongside support to underpin the future growth and aspirations of clients, all the while assisting with their current requirements.

It comes at a time when businesses of all sizes – and SMEs in particular – have struggled to access the funding needed to achieve their full potential in the UK’s unpredictable economic climate from their bank. This partnership will aim to offer help and support where it is most required.

Evette Orams, managing director of Hilton-Baird Financial Solutions, commented: “The FD Centre is extremely well regarded with a proven track record at helping its clients to reach their potential. I am therefore thrilled to be able to announce this promising partnership. The key here is that both of us are passionate about providing invaluable services to UK businesses and making the difference to the lifeblood of our economy.

Sara Daw, CEO of The FD Centre, added: “Access to the right type of funding for our clients to help them grow has never been more important than it is right now. This is the driving force behind this partnership and by working closely with Hilton-Baird Financial Solutions, who specialise in providing cash flow solutions to SMEs, we are able to source and manage the very best funding opportunities we can for our clients.”

 

The Government has launched a new Enterprise Capital Fund that will invest at least £40 million in high-growth potential small and medium sized enterprises (SMEs) in the UK.

The new fund – Notion Capital – is the eleventh, and largest, Enterprise Capital Fund and £62.9 million has already been committed to it from the first funding round. This includes substantial commitments from private investors, the Government and the European Investment Fund (EIF). The Notion Capital fund will target emerging, high-growth cloud computing and Software-as-a-Service (SaaS) companies.

Business and Enterprise Minister Mark Prisk said:

“It is absolutely vital that ambitious small firms can access the finance they need to expand and grow, and this new Enterprise Capital Fund will provide at least £40m of funding to viable UK high-tech businesses.

“Notion Capital is the largest Enterprise Capital Fund to date and will help a significant number of firms to grow and create jobs, boosting our economy.”

Enterprise Capital Funds were established to address a market weakness in the provision of equity finance to SMEs. Government money is used alongside private sector funds to establish overall funds that target investments in SMEs of up to £2 million.

Rory Earley, CEO of Capital for Enterprise Limited said:

“We have been very impressed by the ability of the Notion Capital team to bring to bear their extensive entrepreneurial and operational experience to enhance the businesses in which they invest.

“We are delighted that the team has reached first close with £62.9 million in investor commitments. This result demonstrates the strength of the Enterprise Capital Fund programme and in particular the attractiveness of the Notion Capital fund.”

John Holloway, director transaction and relationship management at the European Investment Fund said:

“A key aim of EIF is to support emerging fund managers in their development towards established market participants. With a first closing at £62.9 million, EIF is not alone in recognising the merits of Notion Capital’s strategy underpinned by their demonstrated ability to create value in their target market”.

Notion Capital has a pan-European focus and will invest at least £40m in the UK, which means that the total investment guaranteed for UK companies is higher than for any previous Enterprise Capital Fund.

The Government has committed a total of £200m to the Enterprise Capital Fund programme in the four years up until 2014/15, and further funds will be announced in due course.

Small and medium-sized enterprises (SMEs) remain committed to trading internationally and continuing to seek out new opportunities overseas, new research from HSBC Commercial Bank reveals.

Of those SMEs who are currently trading overseas, four in ten (38 per cent) are looking to increase the number of countries in which they operate or have connections, with almost half 46 per cent expecting to continue operating in the same markets.

New businesses, those SMEs who are under one year old, also recognise the importance of looking to overseas markets, with one in five (22 per cent) already generating revenue from overseas sources. In fact 90 per cent of young businesses already with an overseas presence are looking to increase the number of countries they are trading with.

Jacques-Emmanuel Blanchet, deputy head of HSBC Commercial Banking UK and Europe, said: “The Government has recently announced an aim to double UK exports to one trillion pound this decade, and SMEs will play a big part in helping to reach that target. Our research highlights that small and medium-sized businesses are up for the challenge, and even newly created businesses recognise the benefit, and are looking to further increase their footprint overseas.

“At HSBC we forecast that UK international trade will grow by 60 per cent over the next 15 years, so it is encouraging to see so many businesses positioning themselves to grow by taking advantage of international opportunities. Due to the critical role international trade will play in ensuring the future success of UK businesses and the wider UK economy, we recently launched the £4billion ‘HSBC International SME Fund’ to help SMEs who trade or aspire to trade internationally.”

The research also found:

• Four times as many SMEs who are currently operating overseas expect to expand rather than contract their companies (38 per cent vs 10 per cent)
• 4 in 10 (40 per cent) started overseas trading in order to increase turnover
• One third of SMEs (32 per cent) decided to go international due to limited opportunities in the UK
• 15 per cent of SMEs are looking to grow market share by trading overseas, and 10 per cent are looking to become market leader.

Taking your business into a new market can be quite daunting. HSBC’s research also looked at the top five concerns SMEs have when starting to trade overseas that are:

• Securing payment from customers
• Understanding the opportunity and being able to evaluate its success
• Fluctuating currencies
• Managing the logistics
• Language barriers

Jacques-Emmanuel Blanchet added: “Whether companies are looking to take their first step to trading overseas, or they are seasoned exporters looking to start in a new market, there is a network of advice, this includes HSBC’s international experts, Government support from UKTI, plus local Chambers of Commerce, who can advise on overcoming important concerns, and lead to successful internationalisation.”