Stop associating growth with jobs, StartUp Britain ambassador tells government

The founder and editor of Enterprise Nation has spoken out against the UK government – saying ministers are wrong to link the growth of small businesses with job creation.

Emma Jones, an ambassador for the StartUp Britain campaign, was speaking atthe launch of Moonfruit’s Shopbuilder ecommerce platform – the brainchild of Growing Business columnist Wendy Tan White. She was reacting to recent criticism of small companies for not taking on more staff.

Directing her comments at the government, Jones said: “Stop associating growth with jobs. Growth equals more small enterprises, which drives the economy. But this is not because they hire people, but due to the fact that they outsource.

“This is the new successful small business model – niche, nimble and outsourced.”

Jones explained to the audience of media and business owners that small companies need to reinvent themselves for the prevailing tough economic conditions, recommending three key routes to take.

Paths to growth

First, she advised companies to focus on their niche function, explaining: “This means you can keep marketing costs low and customer loyalty high.”
 
Second, Jones stressed the importance of engaging with a global audience through the internet – using ecommerce, web content and social media. She added:

“Exports in the UK are at a record high, as companies take advantage of favourable exchange rates. What’s more, there are 1.2 billion online customers globally, and technology like that created by PayPal and Moonfruit can help you reach them. You need to focus on your niche and achieve global reach.”

Finally, Jones emphasised the importance of outsourcing non-core functions: “Focus on what you do best and outsource the rest.”

Education

She concluded by explaining that to encourage small businesses to follow these recommendations, education, media and the government also needed to be reinvented. She said:

“Kids need to learn that starting a business is a good thing. They should be encouraged to find something they love doing and make a business out of it.

“Meanwhile, the media needs to realise that small businesses make good stories too, rather than focusing on the success and failures of large corporations.”

© Crimson Publishing 2011