Originally written by Anna Jordan on Small Business
Restaurants and retail stores are raising complaints about payment processing firms holding onto their money, according to The Times.
Payment companies already impose a transaction fee, causing more problems for stretched businesses as consumers increasingly opt for card and mobile wallet payments.
UKHospitality have not heard any cases from their members, but urge anyone affected to come forward. Kate Nicholls, the organisation’s CEO, told SmallBusiness.co.uk:
“With the bulk of hospitality businesses providing products for immediate consumption, there doesn’t seem to be any reason why merchant services should do this with businesses like cafés, pubs, restaurants or bars.
“If any hospitality businesses have experienced this, then we encourage them to contact us, even if they are not members of UKHospitality.”
The practice is more common in sectors with higher-priced items like holidays and furniture. In the run-up to Thomas Cook’s collapse, the firm’s payment processor lengthened the time it held onto customer money from two days to several weeks. The Times reported that the processor held onto millions of pounds.
> See also: Three ways to reduce chargebacks
Worldpay, First Data and Adyen are expected to review the risk profile of their relationships following Thomas Cook’s demise. The Financial Times says
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Sorry, Lord Sugar you’ve been fired by the youth
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Research from Entrepreneur First shows that over three-quarters (76pc) of 18-30-year olds lack relatable entrepreneurial role models with similar values to them.
More than half of respondents relate to the typical traits of an entrepreneur: risk-taking, resilient, optimistic. However, they don’t see entrepreneurial giants like Lord Sugar and Richard Branson as figures that motivate them.
The findings come from a global study on ambition, with over 10,000 respondents across UK, France, Germany, India, Singapore and Hong Kong believing they may lack inspirational role models. Even so, they are no less motivated.
In fact, this age group generally see themselves as more ambitious and motivated than their parents’ generation. They also believe they have a greater propensity to change the world for the better than established companies (25pc) and the Government (18pc).
Despite their optimism, less than half believe they will set up their own company. Over a third (41pc) are worried that they’d be worse off financially while 39pc lack the access to capital to work towards their life and career ambitions. Uncertainty is stopping 37pc of respondents and the same proportion fear the possible lack of stability that comes with being an entrepreneur. Over a third have
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Paul Uppal steps down as Small Business Commissioner
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Paul Uppal has left his role as Small Business Commissioner due to a conflict of interest.
According to The Times, Uppal was told that the business department felt his involvement in establishing a bank redress scheme was a conflict of interest. The department indicated that his departure was not related to performance but to an unspecified breach of terms of his appointment.
Uppal has been helping the banking industry and small business groups to set up the business banking resolution service. The aim of the service is to help SMEs with unresolved complaints to get an independent view of their dispute.
He stepped down on the evening of Friday 11 October.
Getting more powers to help small businesses
The role of Small Business Commissioner was established in 2016 as a mediator of payment disputes between small and large companies. Since taking the position, Uppal has introduced a practice of naming and shaming companies that treat suppliers poorly. He was also going to be given powers to fine companies guilty of late payment and force them to deal with him directly, as well as taking over the running of the Prompt Payment Code.
Mike Cherry, the chairman of the Federation
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Over half of entrepreneurs favour a Norway-style Brexit deal
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
New figures reveal that 55pc of small businesses would want rules similar to Norway for goods and services post-Brexit.
This means we would stay in the single market and continue to follow EU rules for goods and services with reduced influence on said rules. We’d retain our full continued access to the EU market and free movement.
Justin Donne, who runs a consultancy in Nottingham, sources products from France, Germany and Italy as well as Amazon and suppliers from the USA. He believes that staying in the single market is important.
“If all of a sudden there are customs charges [for exchanging goods in the EU], I’ll be reticent to make purchases – and so will businesses over there.
“Some things I need aren’t available in the UK. I would love to find local goods but I’ll likely be forced to find alternatives which could be inferior,” he told SmallBusiness.co.uk.
Feelings of optimism and doubt
Despite the uncertainty around Brexit, business leaders are feeling positive. A poll of almost a thousand members of the Institute of Directors (IoD) shows that the majority of firms managed to grow over the past year, with 13pc at least doubling their turnover.
However, half
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Businesses would be hit by annual £15bn customs bill under no-deal Brexit
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
UK and EU businesses would be hit with a collective yearly customs bill of £15bn after a no-deal Brexit, according to HMRC.
Its impact assessment said:
“The latest statistic estimate for the annual administrative burden on UK businesses from import and export declarations is £7.5bn (updated to reflect 2017 UK data) with import declarations for all EU trade in goods movements.”
It said that additional administrative costs will also apply to businesses in the EU because an export declaration from the UK will need to have a corresponding import declaration into the EU and vice versa.
This analysis comes from the trade statistics evidence base, used by the World Bank in compiling their Doing Business report in 2017. So, HMRC estimates that the static total ongoing administrative burden on UK-EU trade is £15 billion (updated to reflect 2017 data) a year.
The report also highlights that the average time taken to fill out a customs declaration form will be one hour and 45 minutes for high volume declarations but doesn’t specify for low volume. It did show that small traders importing low volumes would pay £56 per form, assuming that low volume traders would outsource their declarations.
More changes
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Skills shortage to cost small businesses £145,000 the the next year
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The UK’s skills shortage will cost small and medium-sized businesses £145,000 on average in the next year, according to an independent study from Robert Half UK.
That figure is expected to rise to £318,000 in the next five years.
The skills gap – the difference in skills required within a business or organisation and the actual skills the workforce of the organisation has – is part of the reason that the UK has the lowest productivity among the G7.
Macro challenges like a shrinking talent pool due to Brexit, increased digitalisation and economic influences are behind the widening skills gap. They’re also stifling innovation and preventing SMEs from entering new markets.
Essential skills that are needed to help close the gap include data analysis and digital skills as well as softer skills such as resilience, adaptability to change and critical thinking.
The research, commissioned by Robert Half’s 2020 Salary Guide, highlights that SMEs are worried about the potential impact of macroeconomic events on the skills gap in their businesses.
Negative impactPositive impactNo impact
Recession59pc16pc18pc
Brexit47pc20pc26pc
General Election pre-202015pc26pc47pc
IR3515pc18pc41pc
Digitalisation/Industry 4.012pc44pc32pc
Three in five (59pc) said that a recession would negatively impact their business, followed by Brexit (47pc). A quarter of SMEs (26pc) said that
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Only one fifth of small businesses have prepared for no-deal Brexit
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Only one fifth (21pc) of small businesses exposed to Brexit have prepared for the UK leaving without a deal.
The average cost to each company preparing for Brexit has climbed to £3,000, according to the first-ever survey of small business no-deal planning.
More than one third of the over 1,000 companies that completed a Federation of Small Businesses (FSB) survey said that Brexit had already either temporarily or permanently dented profitability.
See also: GDPR and Brexit – 5 steps your small business can take
A similar number said they have had to stockpile before the expected October 31 EU exit date, further tying up funds.
The FSB, which has 165,000 members with an average of seven employees, says that almost 40pc of small businesses would be badly affected by a no-deal departure.
Two thirds of small businesses say they cannot prepare because they don’t know exactly what to prepare for. Many small business owners complain they do not have enough sector-specific information over trading and tariffs, or what kind of Brexit will become law, to be able to plan.
Mike Cherry, FSB national chairman, has called on the Government to issue no-deal preparation vouchers worth up to £3,000 to cover
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Labour to offer 2.5bn interest-free loans to help small businesses switch to electric vehicles
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Labour will introduce 2.5 million interest-free loans to help small businesses, sole traders and low-income households to buy electric cars.
Speaking on the BBC Today programme, shadow chancellor John McDonnell said the loans of up to £35,000 would cover the £1,500 cost of interest on a loan, with individuals saving up to £5,000 over time.
McDonnell said: “This will stimulate the automotive industry, it will sustain jobs in the conversion from fossil fuels to electric but actually it will create new jobs as well.
“So this is beneficial in terms of the climate, it is beneficial for those people who want to convert their carbon-fuel powered car into an electric vehicle that is sustainable.
“At same time it will help support the automotive industry and create jobs. Those jobs are in areas where we have had real issues, particularly with Brexit.”
The interest-free loans will require participation in a mass trial of Vehicle-2-Grid technology that will allow the UK to transition to renewable energy.
This new technology will allow electric cars to store excess energy from the national grid, smoothing energy supply from renewable sources.
Today, shadow business secretary Rebecca Long Bailey will announce at the Labour Party conference in Brighton that, if elected, it will build a national network of electric vehicle charging point at
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Brexit blamed for sharp fall in the number of UK start-ups
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The number of new UK start-up businesses saw a sharp fall last year, with researchers blaming the economic uncertainty caused by Brexit.
These figures come from the Enterprise Research Centre, a research institute made up of several universities. It recorded a drop from 325,900 to 284,000 (12.9pc) in its annual UK Local Growth Dashboard report, which looks at a range of metrics charting the growth of SMEs.
Northern Ireland saw one of the biggest drops overall at around 15pc, even though it’s had strong start-up growth in recent years. Swindon and Wiltshire saw the biggest drops in England with 45pc fewer start-ups than in 2017.
It’s not all gloom, though. Three areas actually saw an increase in start-ups – the north of Northern Ireland (+2.6pc), Liverpool (+2.8pc) and Worcestershire (+9.2pc).
Mark Hart, ERC deputy director and professor of small business and entrepreneurship at Aston Business School, said:
“Budding entrepreneurs are clearly holding their breath waiting for some clarity about the outcome of Brexit, but if the trend continues we’ll see fewer jobs created by dynamic young firms.
He adds that, even though established firms are still growing successfully in many parts of the country, it’s frustrating that productivity growth
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How to prepare your small business for a no-deal Brexit
by Giles Dixon • • 0 Comments
Originally written by Giles Dixon on Small Business
The new prime minister is preparing for a no-deal Brexit on October 31. What does this mean for your small business and how can they survive it?
If you are trading between the UK and the EU, there could be a lot of disruption in October, whether we leave the EU with or without a deal. The situation in some ways is similar to force majeure – an unforeseen event which can cause disruption and damage. But until it happens, you won’t know how badly it will affect your business.
If you are an agent or distributor of a company in the EU or you regularly trade with companies in Europe (or vice versa), you need to think about the repercussions which a hard Brexit might have on your business. The impact could be practical – e.g. do you need to pre-purchase goods to avoid the risk of border delays after October 2019? Or they could affect pricing and profit – e.g. the risk of new tariffs.
Read: Government mulls small business funds to limit impact of no-deal Brexit
It is also important for businesses dealing with the EU to realise that whatever happens on October 31,