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Real life entrepreneurs - FSB Campaign


Small Business GrowthThe Federation of Small Business (FSB) is launching a campaign to celebrate "real life entrepreneurs." The campaign will highlight obstacles entrepreneurs face after they take a risk and set up their own business. John Walker, FSB chairman, said, ‘Turning a good idea into a business is one of the most positive acts an individual can perform for themselves and the community in which they live.’

As part of the campaign, serial entrepreneur and regular Financial Times columnist Mike Southon, will speak about some of the main difficulties start-ups face. There will also be a roadshow providing advice and networking support at several locations around the UK.

A third of FSB members say the biggest issue facing entrepreneurs is regulation and taxation. One area that urgently needs reform is VAT according to the Mirrlees Review from the Institute of Fiscal Studies.The review says the UK system is inefficient and far too complex.

Earlier this month David Cameron praised the courage of people who "turn their back on the security of a regular wage", and look to succeed on their own by starting a company. The prime minister said he believed the UK was "fizzing with business potential."

Comments
  • The VAT system is ludicrous and certainly militates against micro-companies. The costs involved in going from non-vat registered to vat registered far outweigh the benefits of growing a business. However there is an even more damaging issue that affects internet retailers and that is UK Distance Selling Regulations. These open up companies to fraud and theft, whereby customers are allowed to cancel an order after it has been received and the seller is obliged to refund even though the goods are not returned. No other country allows it's internet retailers to be robbed in this way. Customers may also claim non-delivery, even when a signature for a recorded item has been given, and the seller is forced to replace or refund. We also have to refund postage costs on the spurious analogy that customers buying on the high street can check goods out before they buy. This is not always the case, and if a customer changes their mind after purchase, whilst the shop is required to refund the costs of the goods, they are not obliged to refund the customers travel expenses paid to get to them in the first place. Even in the case of fault, a customer can only get the purchase price back, not their travel costs. So why should we have to refund postage because a customer has changed their mind? For fault yes, but for anything else, postage costs should be borne by the customer just as their travel costs to the shops is borne by them.

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