Small businesses 'can succeed despite credit squeeze'

Date: 25th January 2008

The credit difficulties currently affecting the UK economy should not discourage people from attempting business start-ups, an expert in the field has stated.

Although people may automatically think that the credit crunch has made conditions more difficult for new companies, Dr Lorna Collins of the Flying Start initiative claimed that "there is not any more or any less room to fail as a result of the credit squeeze".

She said that because the margin for failure is "dependent on so many factors in a businesses environment", people should not be put off starting up at the current time, although good business accounting and bookkeeping may become even more important.

Dr Collins added: "Since the ability to affect changes … is out of the hands of small business, [the credit squeeze] is just something that new business owners need to be aware of, plan and account for."

Flying Start is run by the National Council for Graduate Entrepreneurship and aims to help young people start businesses by offering funding, mentoring and practical workshops.

TaxAssist Accountants focus their accountancy and tax skills specifically on small businesses and taxpayers in the UK.