NEWS Compiled by Hannah Medioni
Start-up businesses power UK growth, but must protect against business failure, warns AXA ||| AXA is in total agreement with the Government that small business start-ups are crucial to the future growth of the UK. However, it is concerned that without the proper protection in place new businesses may have the opposite effect. AXA is issuing a warning that it is important for businesses to protect their accumulated assets before they look for growth opportunities. Over the last few years Britain has seen a wave of entrepreneurs fulfill their aspirations of running their own business, with nearly 450,000 small businesses registering during 2011 vs. 380,000 in 2010. However, new research from AXA has found that many are starting up with little awareness of the risks they face, nor the knowledge of how to protect themselves. One in four said they did not know what sort of insurance they needed when they launched,
with the main reasons cited as being new to running a business and not knowing where to go to for advice. The research also found that despite the risks they face, few small businesses plan for every eventuality: 19 percent of UK SMEs surveyed could not identify the risks facing their business. Almost half do not have a business continuity plan in place, and 91 percent have not reviewed their policies to see if they are covered for public disturbances such as riots. AXA Business Insurance is seen as being particularly useful for start-up businesses and small family firms as a cost-effective means of protecting themselves against the downturn. The company launches a new direct business insurance service for small businesses ensuring they can get not only the bespoke protection they need, but also the support.
HSBC launches £4 bn fund to support UK SMEs trading with new markets ||| UK businesses will see international trade growth accelerate from 2014 as the global economy ends a period of growth contraction, according to new research from HSBC. SMEs make a substantial contribution to the total value of exports and HSBC is in a unique position to support businesses who are, or who are about to, trade internationally. With international trade being the key to future UK growth, HSBC is launching a new multi-billion fund
specifically for SMEs that trade with other businesses across the globe. The ‘HSBC International SME Fund’ will provide at least £4bn of lending to SMEs with a turnover of up to £25mn and will be available in the coming weeks. HSBC’s net lending to UK SMEs grew by 4% year on year, despite the UK market shrinking over the same period by 6 percent. The bank has also committed to lend more to UK businesses in 2012 than it did in 2011.
Tax break to encourage “mumpreneurs” to start their own businesses ||| Under plans for this year’s Budget, parents who set up their own business would be eligible for a tax break of up to £900. The proposal involves extending childcare vouchers, now available to 700,000 working parents. With the aim of encouraging the creation of startups, childcare vouchers will now be provided to selfemployed mothers and fathers as well. The supporters of the scheme believe that the cost of the changes – around £52m – is relatively small and would rapidly reap benefits by making use of a vast untapped reservoir of skills and talent to boost the economy.
At the same time, George Osborne is expected to confirm in the Budget the withdrawal of the child benefit for all higher-rate taxpayers from 2013 to save £1bn a year. The move to extend childcare vouchers to self-employed parents can therefore be interpreted as the Government’s attempt to win back female voters disillusioned by the cuts and other austerity measures affecting them. There are nearly 1.4mn self-employed people in the UK with a child under the age of 15. Women account for 46 percent of Britain’s economically active population, but make up only 26 percent of the self-employed workforce.
info - april / may 2012 - 27