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Chris Grayling ‘Army of Entrepreneurs’ Proposal

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Every business start-up has a cost, and if you’re on the dole you can’t easily afford to buy basic equipment. At the moment the only start-up cash available from the “new deal” for unemployed people trying to start a business is £400. We don’t think that’s nearly enough, so we’ll give the business start-up specialists the ability to fund costs of up to £2,500, and then reclaim the money from the benefits saved once the business is up and running.

Chris Grayling – How to Lift the EconomyWith an Army of Entrepreneurs

On the face of it this looks like a great idea.  The logic is both simple and compelling.  Startups cost money.  People don’t have it.  Let’s give them it, funded out of future benefits savings.

Several reasons why I think this might not work in practice:

  1. It will attract a lot of people to the £2500 who are not sufficiently committed to enterprise and self employment – enterprise professionals will spend hours of their time wading through the sharks to find the genuine latent entrepreneurs.
  2. It will encourage some people into enterprise for whom it is almost certainly not the best option – business failure rates are likely to increase with this type of soft start-up provision – damaging the enterprise culture in the medium term.  Only if we use robust investment criteria will this be avoided.  This means turning a proportion of applicants down – leading to bad word of mouth.
  3. If business ideas are viable they will find investment – the problem is still not lack of cash – it is lack of investment ready business plans.  Let’s spend our money here on providing inspirational coaching and good technical advice (NB there is already plenty of technical advice out there – labeit patchy in quality)
  4. Sources of funding and sources of advice need to be kept separate.  It is too easy to tell the funder what they need to to hear if they are to release the money.   You MUST be able to speak the unvarnished truth with your advisers.

There maybe ways to overcome most of this stuff.

However IF the only reason a business gets started is because of a £2500 gift from the government – offset against future benfits savings – then I for one would worry.  Unless there is real commitment, passion, talent and skill to invest in I can see lot of cash going down the tubes.

Your thoughts?

The Creative Entrepreneur – WOW

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Good networking event last night hosted by WYLLN, bmedia and nti.

Explored a couple of questions:

  • In a fast-moving industry dominated by freelancers and SMEs, what does ‘Leadership & Management’ really mean?
  • Why is it important?

More prosaically put – why are so many creative/digital businesses poor at establishing basic business processes, managing other creatives and getting paid?

My opinion?

It is because we (the business support industry) insist on training digitals and creatives (and every other entrepreneur) that they have to do all this stuff if they are going to be successful in business.

And this is, frankly, nonsense.

It damages people.

It distorts them from their true purpose.

The challenge is being comfortable with who you are, what you want to become and what you want to spend your time doing.  Enterprise is a long term process of becoming, of exploring and realising potential.  And then finding people you can work with to do the rest.  It is about negotiating your self interest and building the right team.  All really successful business are team starts.

Why don’t we teach this?

  1. Find out what you love.  What you really love. Something that will keep you engaged for years while you strive for mastery and excellence.
  2. Get really good at it and keep getting better.  Specialise.
  3. Understand the importance of other things that you do not love.  Learn to respect and value them.  If you are a creative/digerati this is likely to be management, sales and marketing. (Most creatives and digitals have spent many hours over many years working alone honing their craft.  They tend to be introverted and uncomfortable with conflict.  Hence the aversion to management, sales and marketing.)
  4. Find other people who love doing the bits you hate.  Form a team.  A strong team. Form it with care. Take your time.  Unpicking the wrong team can be very expensive.
  5. Collaborate on developing a vision and an action plan for the business.
  6. Act – act often.
  7. Reflect and learn.

Simple.

DO NOT TRY TO DO IT ALL.  You will build a mediocre business.  You will find yourself falling out of love with large parts of it.

Dave Pannell from the Design Mechanics recognised that he would perhaps never have been a really great graphic artist (I think I heard you say that Dave).  And my guess is that this freed him up to run a great design business.  His job is to work on the business as it grows and to spend less time working in it.

Liz Cable from Reach Further is building an agile team of freelancers and employees covering all the main bases.  Balancing the demands of MD/entrepreneur working on the business, and passionate digerati working in the business is already a challenge.  Being  1.4 of an FTE is not sustainable.

I suspect that Liz will either have to spend more time in the MD role or find someone the team trusts to take this on, freeing her up to surf the wave of technology and its application to building better businesses.  Or she may find a way of balancing the two.  However if the growth plans she outlined are to be realised I suspect a decision one way or another will be required before too long.

You see the real job of the entrepreneur is to manage the art of becoming.  It is about the emergence of identity; building a life and a living – not the development of cash flow forecasts or the ticking of boxes on a competence framework.  And when we take this seriously we will develop much more powerful and engaging process for enterprise education and build more powerful, sustainable and great businesses.

We must remember that the Latin root of educate is ‘to lead out’.   Our job is to facilitate the emergence of identity – not to pour in the trivia of business skills.

The Problem is not the People

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Most of our attempts to develop an enterprise culture are all about fixing individuals.  Giving them support (because they are not strong enough), providing them with advice (because they are not clever enough) etc.  It is all about fixing faults.

Very few attempts take seriously the social context in which we expect enterprise to develop.  Enterprise is a social phenomena- a product of community and relationships – it is not about fixing individuals.

It is about building communities.

Benevolence, self-interest, self love and humanity

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It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from regard to their own self interest.  We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.  Nobody but a beggar chuses to depend chiefly on the benevolence of his fellow citizens.

Adam Smith – Wealth of Nations

Is a failure to really understand our own self-interest, a lack of self-love, a causal factor in some of our most disadvantaged communities? If yes, what to do…

Build It – And They Won’t Come!

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Why are so many ‘entrepreneurial’ workspaces so empty?

I have visited many recently. Those that pursue sustainability through membership fees and rentals are often the emptiest. Or full of people from out of town who can recognise a bargain when/if they see one. Those that recognise that local people often cannot afford to pay and therefore offer their services for free seem to have customers literally queuing up. However these are written off as ‘unsustainable’. Investing in the development of people – ‘Obviously unsustainable’!

The symptoms are obvious to the semi-expert eye. Tired signs saying ‘under offer’ for months without new tenants materialising? Acres of untouched hot desk space. Continual assurances that we were busy yesterday. Caterers that come and go – because the footfall that they anticipated has not materialised.

Promises lying broken.

When we build these places – WHY DON’T THEY COME?

This is an important question. And one that we CONSISTENTLY fail to address.

Why do those charged with developing a more enterprising culture believe that building catalyst centres, managed workspaces, incubators and other spaces will somehow change the psychology, the prevailing beliefs of a community?

Why is the “build it and they will come” mentality so prevalent? And so successful in unlocking the wallets of planners, politicians and commissioners alike?

Why in the face of refurbished or newly built, but largely empty, buildings do we insist on building yet more? Is it in the name of job creation?

We develop a more enterprising culture when we tell better, different stories. Stories of hope, aspiration, potential and achievement. Stories of progress, passion, skill and learning.

When we provide respect, encouragement and transformational relationships built on trust and wisdom. When we engage people as individuals and help them to clarify and achieve their own goals – not those pre-defined by some policy maker.

When we listen to them talk about their hopes and dreams – not tell them about the great deal we can do them if they take rent our workspace.

We don’t transform a culture by providing people with access to whitewashed vanilla workspaces and the chance to use a shared laptop with a keyboard dirtier than a toilet seat.

It is not just the waste of valuable resources that is so galling when we see buildings refurbished just because they can be. It is the ongoing waste of money as we try to cover up our mistakes in a futile effort to make them work. As commissioners cover their backs and hide behind and fall back on the recession as an excuse for their failed investments. Buildings don’t change cultures even in the good times. They don’t narrow the gap between the haves and the have nots even when the economy is on a roll. People do.

Now I hate to see a beautiful building falling into decay just as much as the next man. But I hate to see the talent and potential of people being wasted even more. Those buildings were a by-product of a vibrant, creative and enterprising community – not the cause of it.

To develop a more enterprising culture we first have to stimulate the demand side – get more people wanting to do stuff. Believing that THEY can do stuff. That they have a right to succeed or at least try – and that they will be supported with care, compassion, competence and creativity.

Only when this work on the demand side is underway and delivering tangible results should we invest in the infrastructure that they need – because then we have a chance of making an investment in something that people really want.

Something that might just fit.

Something to which they will come.

NB Of course if you build high quality entrepreneurial spaces in places that are already enterprising then they fill quickly.  Anyone else see a pattern emerging here?