29/03/2011
The government have launched an entrepreneur-led scheme for new businesses but it will not use public funds, reports Tech Crunch.
The Startup Britain scheme is backed by Prime Minister David Cameron, and 60 leading firms have pledged support that adds up to over £1,500 per new business.
The package is as diverse as the companies who provide them. Google are offering free advertising for a limited period, O2 will be offering free line rental, and YouGov will work with the University College London to promote the scheme to students.
However, small and medium-sized businesses, will still need additional help with initial start up costs. It is reported that the majority of the new incentives on offer will not last more than a few months.
Invoice discounting is one such way in which funding can be generated from unpaid invoices without having to wait to be paid by a customer base. It is a more sustainable method of funding as it allows for money to be used instantly, and can be used over a long term, unlike the short boost that the firms are offering in the Startup Britain deal.
Companies may want to use such invoice finance options alongside government schemes and innovative staffing plans to grow their business further in 2011.
In a statement, David Cameron spoke of the scheme. He said: "We need to see a country where new businesses are starting up on every street, in every town; where entrepreneurs are everywhere. We put out a call to business to rise up and help us drive the recovery and Startup Britain is part of the answer to that call."
Virgin, Blackberry, Microsoft and Fujitsu are amongst those also backing the initiative which will favour young entrepreneurs too. The 'tenner tycoon' scheme will offer £10 loans for young businessmen and women.
There are 270,000 new businesses launched each year and help Startup Britain will help 'drive growth by accelerating, inspiring and celebrating Britain’s start-up talent,' according to number10.gov.uk.
Entrepreneur Oli Barrett, a founding member of Startup Britain is also optimistic about the scheme. He told the Daily Mail: "It aims to be the biggest ever drive from the private sector to contribute to a robust economic recovery - an enterprise-led recovery, by business, for business."
Other incentives from the leading companies include IT training and storage, marketing services and business insurance.
Chris Taylor