Business start-ups 'spending too much'

News Article - 06 June 2008
Category: Business

Small business start-ups are "spending too much money" and cannot afford to waste cash, an expert claims.

According to John Dunsmure, managing director of the British Chambers of Commerce (BCC), greater practical support is needed to help new ventures become "significantly more successful".

"I meet with businesses up and down the country all the time," he explained. "Everywhere I went the story was the same - cash strapped new firms were spending too much money they could ill afford, on things they did not need, or buying the wrong equipment. There was no spare cash and when the going got tough so many had to fold."

Businesses struggling to manage their finances effectively can substantially benefit from accounting packages to help them reduce costs.

The BCC and the Accredited Chamber Network have launched a new long-term commitment to help new firms in Britain and unveiled a custom-built Business Start-Up Pack in response to feedback from new enterprises.

Created in order to tackle the high number of start-up failures in Britain, the Business Start-Up Pack provides a range of products and services developed by the BCC in conjunction with a number of its commercial partners, including three years free business banking from RBS Group, exclusive telecommunications and mobility offers and free legal advice.

Britain is putting pressure on the European Investment Bank to help commercial lenders to shoulder the burden of lending to small businesses in order to ensure that they survive the global credit crunch.

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