Business Link has launched a new campaign to raise awareness of the potential risks complacency can pose to new businesses.
The ‘Business Booster’ initiative will help businesses in London grow, providing access to a range of resources to help them develop.
According to figures from the group, over 90% of businesses are making it to their first birthday, while less than one in seven make it to their third.
The research also found that under half of businesses with less than 49 staff had sourced formal business advice, with Black and Asian businesses even less likely to access external help.
Business Link said it hopes the findings will be a ‘wake-up call’ to businesses who have passed their one-year anniversary, prompting them to recognise and effectively tackle the growing pains they often face.
Tim Campbell, the former Apprentice winner who runs entrepreneurial charity The Bright Ideas Trust, said: “If you’re running your own business, you will know that everything doesn’t always run smoothly. You will experience growing pains, but to face the challenges, you need to think about who can help you plan for the future. No one is an expert in everything.”
Andy Berrow, Business Link’s senior business advisor, added that recruitment, marketing and finance were the key problem areas for developing small businesses.
“We want to make sure that out of the rising number of businesses starting up in London each year as many as possible are making it to their 6th birthday. In reality only 20% will make it this far, but business owners can’t just put their head in the sand when it comes to growing pains. They have to overcome them and the best way to do that is with external advice and support,” he said.
© Crimson Business Ltd. 2008