Govt needs to create options for businesses

Running a business or managing a company can be stressful for anyone, but it may be particularly difficult at the moment due to the strains put on finances by the credit crunch and economic downturn in the UK.

Not only do those running their own firm have to deal with the usual paperwork such as drawing up employment contracts or basic accounting, they also have the added pressure of fighting to survive.

Although the government has said in recent weeks that small to medium-sized businesses will become a priority, many people think more should be done by Gordon Brown to support and find contracts for firms.

Despite this, some people are still optimistic that a few changes could provide the support and financial stability needed for those running a business.

Recently, Roger Povey, owner of Mayhem Board Store, said that transitional allowances would be a good way for those starting a new business to become established.

These allowances would be part of rental agreements and would offer an alternative to the tenancy rates usually charged to businesses by councils.

Mr Povey said: "A small business owner would be given the chance to succeed in the long-term and not have to make incredible success rate, straight away."

Similarly, Charles Davis, an economist at the Centre for Economic and Business Research, claims that possible tax cuts that have been rumoured to be in the pipeline from the government would be "appreciated by businesses who are finding it increasingly tough as a recession kicks in".

It may help people to establish their companies on the market and mean they have fewer concerns and worries while they go through the legal process of managing a firm, such as drawing up share contracts.

Likewise, the economy could be stimulated if cuts are made, thus providing an even further boost to new enterprises.

Although now may not be the best time for any business-savvy individuals to consider self-employment or setting up their own business, it could be a good opportunity for people to change their employment contracts and work from home.

New rules on flexible working are to be introduced as part of new government legislation and those running a business may want to consider this as an option for their employees to help them cut down on the costs of commuting.

Similarly, the Times commented on a report called Legal Lives which claimed that firms could see a "higher quality of work" from their staff if they consider more flexible working options.

Anyone who does decide to begin working from home will need to ensure that they take proper care to get the correct advice and forms for themselves as there are legal issues to be addressed.

Likewise, Lawpack offers the legal forms, employment contracts and business advice required for those who are planning to set up their own enterprise.

The UK may be in the middle of a financial and economic downturn, but this does not mean any business enthusiasts with their own firms necessarily have to suffer or feel resigned to thinking they may not

Published on: November 14, 2008

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