Self Employment ; Entrepreneurship
Entrepreneurship is about seizing new opportunities and taking risks which is why it is so vital to the economy. This is what makes being an entrepreneur such an exciting career choice. 1.2 Support services available to the entrepreneur Scottish Enterprise, Business Gateway, Banks and Independent consultants are the main providers of support to entrepreneurs in Scotland. Business Gateway offer many free services to new business start-ups, young people and particularly female entrepreneurs have access to he most help when starting a new business.
Funding is one of the major considerations when considering starting a new business. The Sole Trader generally relies mainly on personal finance. Banks are the most obvious source of finance. Most will have a small business advisor to approach for loans or overdraft facilities. Before they lend the majority of financial institutions will want to see a detailed business plan as evidence of the business’s potential.
Business Gateway, Shell Livewire and PYSBT will advise and where necessary offer assistance business start ups with potential. There are a wide range of services available ranging from one to one advice, grant funding through to training. The level of support is usually determined by the businesses growth potential, its likelihood of employing people and its sector. These services are available once a robust Business Plan has been drawn up.
The contribution to the local economy of entrepreneurial activity Small businesses and entrepreneurs play a vital role in the economy, they provide new ideas, products, services, jobs and tend to be early adopters of new technologies. Most UK businesses are very small. Two thirds are owned and run by one person. Nearly 90% employ fewer than 6 people. They are also an important source of employment. Just over 2.5 million UK workers are self employed: 1 in 8 of all workers.
Typically a small business is owner managed, delivers products or services, serves local markets, and has a small share of the market. The small business tends to have few major rivals but twice as many minor rivals. Competition is typically regarded as strong. The small business owner manager is usually Jack of all trades, this is a risk and can contribute to the business failing when a situation such as illness or leave from the business occurs. This also has a positive side, small businesses tend to be much more dynamic and are able to respond to market forces much more quickly.
Small businesses tend to stay small as the owner-manager is not willing to sacrifice a stake in the business to promote it’s growth. Small businesses are happy to grow their businesses as long as an organisation such as Scottish Enterprise and other economic development partners bear the risk. Most importantly today’s small business sector continues to create many of the new ideas and Innovations that future generations will take for granted.