Government review into setting up a business

The Government is carrying out a review examining the effectiveness of support and information for people considering setting up in business. It wants to hear from organisations and individuals with experience of 'making the transition from employment or unemployment to setting up in business.'

The review is being led by the Small Business Service (SBS), an executive agency of the DTI, together with the Department for Work and Pensions, Inland Revenue and HM Treasury.

It wants to know:

• how effective Government sponsored information
  services are in supporting people considering making the transition;
  
• ways in which current support could be better promoted; and
  
• how agencies such as Jobcentre Plus and Business Link could help.

According to the DTI, the aim is 'to establish, as part of the Government's strategy to build an enterprise culture, how to encourage more people to make effective use of the support available when starting a business.'

The review, which will report in April to the Secretary of State for Trade and Industry, Secretary of State for Work and Pensions and the Chancellor, was announced in the 2003 Pre-Budget Report and the Government's Action Plan for Small Business.

Businessman Jeff Cooke is chairing the review. He said: "The Government has committed to provide the support necessary to allow those out of work to choose their own form of future employment, including self-employment.

"Now is the chance for people to have their say on the current support and to let us know what they think would encourage more people to take the plunge and become their own boss."

The review will be considering:

• whether links between Jobcentre Plus, the Learning and Skills Council, Business Link operators and other enterprise support organisations at a local level are operating effectively to meet customer needs;
  
• whether in-work incentives, such as Working Tax Credit, New Deal Self Employment, Housing Benefit and Council Tax Benefit, are sufficiently well understood as a means of support to meet the needs of those with a fluctuating and flexible income.
  
• is there enough information available about self-employment and its financial implications to encourage people to consider starting a business compared to entering employment?
  
• are there any barriers (perceived or otherwise), relating to the support available, which affect the choice of moving from unemployment and employment, into self-employment?

Making your views known

Freelancers who have been affected by recent Government measures, such as IR35 and Section 660, and who are now awaiting the next small business tax, IR591, will have more experience than most of the 'barriers (perceived or otherwise)' to entering and running a small business.

If you want to contribute your views to the debate, they should be sent to:

Paul Rigby, SBS Enterprise Culture Team, Level 1, St. Mary's House, c/o Moorfoot, Sheffield S1 4PQ or paul.rigby@sbs.gsi.gov.uk by Thursday 11 March 2004.

Or, you can post your experience and views here and UKTECH will summarise the responses in order to make a collective submission.