Thursday, October 21, 2010

Solution to regenerating small businesses and micro businesses in UK rural and urban economies - perhaps genuinely it's good to talk!

Tonight I watched Bloomberg television where they are discussing how to 'reboot the American economy'. They are talking about all sorts of macro economic things which I suspect are just 'talk'. They get paid for doing that sort of thing and I don't see any solutions in what they are saying.

Closer to home (well at least mine), the economy in rural West Somerset is absolutely dreadful as it is for many rural areas. The West Somerset Council Local Authority has been completely unsuccessful in achieving any level of regeneration whatsoever in my opinion. All they have done is talk too. Talk about innovation, communication hubs and all sorts of expensive consultant-based jargon - all practically worthless and all ... just talk.

Tonight, there was a West Country Labour Councillor on National UK television discussing how many jobs had been created in the West Country (Devon, Cornwall, Somerset, Dorset etc) during the boom years since 2000. Jobs created were very few indeed and dwarfed by the Government created jobs. Therefore, it appears completely incomprehensible to me that private businesses will jump into the job market and soak up the half million jobs estimated to be lost through the UK Coalition Government's cuts, even as they are reeling from the estimated half a million private sector jobs that will be lost too through the austerity budget cuts. The Emperor has indeed no clothes despite the protestations and spin Prime Minister David Cameron, Deputy Prime Minister Nick Clegg and U.K. Chancellor of the Exchequer George Osborne are putting on the austerity budget package.

However, at least everybody I have ever read or spoken to agrees that small businesses are the key to job growth and, when small businesses communicate with each other, in my experience, they quickly find ways they can help each other grow. Yet UK organisations like Business Link do little to seek out and identify small (including micro) businesses and bring them together.

Local Authorities, similarly to Business Link, do little too. They prefer to act as gatekeepers between micro businesses in an attempt to justify the existence of their Local Government Regeneration Officers which acts to prevent rather than encourage communication between small and micro businesses.

If Business Link or Local Authority Regeneration Officers protest this is not true, ask them for a list of all the micro businesses in their area and all the small businesses in their area. I strongly suspect that they will not be able to provide one that is accurate, up to date or comprehensive (consider all the kitchen table and bedroom Internet businesses that should be included). Probably, they will invoke the Data Protection Act to refuse your request to cover their lack of knowledge or interest in compiling this list which would involve talking to the businesses wherever they are.

Perhaps the key to genuine rural regeneration (and probably urban too) in western economies is to vastly improve the effectiveness of communication between small businesses by making a cobweb of links between them so that each micro business is aware of many related micro businesses both locally and nationally which they can help and who can help them.

So, perhaps, if we want to get out of the current world-wide recession in the developed countries of the West, vastly improving communication links between small and micro businesses is the key.

Strangely, as governmental mandarins, media pundits and Ministers of State for the UK and elsewhere waffle, perhaps the simple solution that will genuinely regenerate Western economies is to prove to small and micro businesses that it is good to talk.

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