Business121 Small Business Newsletter #64

In this week's Business121:

1. 1 in 2 Think they've got what it takes to start a business
2. Self Assessment - Don't miss the 31st January deadline
3. Filling in your tax return - Do's and Don'ts
4. The Top Priority for Entrepreneurs
5. Ecommerce in 2007 Is More Profitable & Less Expensive
6. Crackdown on Inaccurate Self Assessment Tax Forms
7. Small business owners aiming for growth in 2007
8. Mates not money make us happy at work
9. 50% of people believe they have the skills to start a business
10. Inspirational business mum of the year awards

1 in 2 Think they have what it takes to start a business

The eighth annual Global Entrepreneurship Monitor (GEM) Report brought a smile to my face last week (see News below). The report is the largest annual measure of entrepreneurial activity worldwide and is compiled by more than 150 scholars from 42 countries.

It did highlight some interesting trends and developments in entrepreneurship, for example, new business start-ups in the UK fell to 5.8% in 2006 against 6.2% the previous year. A fall in start-ups also occurred in comparable economies; US start-ups fell to 10% from 12.4%, Germany was down to 4.2% from 5.4% and French start-ups were down to 4.4% from 5.4%.

In contrast to the falls in more developed economies, entrepreneurialism is positively booming in the rapidly-developing economies of China and India. During 2006, new business start-ups in China were up to 16.2% from 13.7% in 2005. At these levels, Chinese start-up rates are virtually triple the UK rate.

But the findings that caused me to crack a smile were some figures from the GEM UK report. They conducted a survey of attitudes to entrepreneurship and found that 49.6% of UK adults believe that they have the skills to start a business.

Now, to me, that is a staggeringly high number - one in every two UK adults, think they've got what it takes to start a business! This could mean that we're in for an unprecedented boom in business start-ups in the UK. With half of our population believing they could start a business, surely the current decline in the UK's start-up rate will soon be reversed?

But fewer than 1 in 12 expect to start a business in the next 3 years

But sadly, I don't think that will be the case. Because when asked whether "they expect to start a business in the next three years" only 7.8% of UK adults answered "Yes".

So all of a sudden, reality hits home. Even though 1 in 2 believe they have the skills to do so, fewer than 1 in 12 think they will actually start a business in the next 3 years.

To me, the results serve as a reminder that we, small business owners, are a pretty select band. Half of people may think they have the skills to start and run a successful business but only a fraction of us actually have the nerve to take the plunge and find out for real.

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Self Assessment - Don't miss the 31st January deadline
With less than a month until the self assessment filing deadline, HM Revenue & Customs (HMRC) is reminding taxpayers to get their returns in by 31 January, to avoid a £100 penalty for missing the deadline. HMRC is also urging anyone who hasn't filed their return to do so online

Filling in your tax return - Do's and Don'ts
On the same theme, with approximately 876,000 people missing the self-assessment tax return deadline on 31 January last year and receiving a £100 penalty, here are some concise tips for filling in your tax return if you haven't already done so!.

The Top Priority for Entrepreneurs
Now that the New Year has dawned, one of the top priorities for any entrepreneur should be the creation of a business plan. Here's why writing a business plan is a must;

Ecommerce in 2007 Is More Profitable & Less Expensive
New research on the state of the UK SME retail market indicates that trading online has become more profitable and less costly to implement, but that few retailers are grasping the opportunity of selling online.

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SMALL BUSINESS NEWS
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Crackdown on Inaccurate Self Assessment Tax Forms
The Guardian has published an excellent article on the Inland Revenue's intention to raise an extra £3bn per year from personal taxes over the next two years. One of the main ways this will be achieved is by tightening down on the accuracy of self employed self assessment tax declarations...

Small business owners aiming for growth in 2007
A survey has revealed that small and medium-sized businesses feel that customer service and staff are key to ensuring a successful year of growth in 2007.

Mates not money make us happy at work
The most important factor in employee happiness is not money but friendship. 73% of British workers cite good relationships with colleagues as the key reason they enjoy their job, while only 48% cite financial reward.

50% of people believe they have the skills to start a business
The Global Entrepreneurship Monitor UK Report has found that 49.6% of UK adults believe that they have the skills to start a business. More interesting, is the fact that only 7.8% of UK adults expect to start a business in the next three years.

Inspirational business mum of the year awards
Mums who run their own business are being invited to celebrate their achievements by entering the first ever ‘Inspirational Business Mum of the Year’ award.

For the latest Small Business News, visit http://www.Bytestart.co.uk

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PERSONAL TAX RETURNS - IT'S NOT TOO LATE
Let us help you beat the January 31st deadline for submitting tax returns. Contact Ian Marlow at HfM today on 020 8690 7444 or email Ian@hfmtax.co.uk

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