So how do you start a business in a recession?

Start a business that helps people start businesses, that's how.

Setting up a business during a recession is difficult. So why not start a business during a recession that helps people establish their own businesses? This was the original thinking behind Yoodoo, a medium-sized business based in London's Soho that has grown to provide high-engagement e-learning for all sorts of clients, from banks to dentists.

"Yoodoo began as an idea for a kind of web home for new entrepreneurs", says Nick Saalfeld, head of content at Yoodoo. But like many new businesses, Yoodoo has morphed over the years, and now does things that are far afield from the original yoodoo.biz – a website that guides users through every stage of the process of starting a business, and making it succeed, with videos from leading business professionals, downloadable documents, quizzes and practical walkthroughs.

What happened, Saalfeld tells me, is that Yoodoo discovered their forte lay in making e-learning work, getting it to produce real outcomes. Where the original may have taught mobile hairdressers, for instance, the basics of business, Yoodoo now powers the way dentists learn about compliance, helps recruitment consultants practice more successfully and gives unemployed people the skills to find work. It’s in providing outcome-focused learning experiences for other established companies that their primary activities now lie, and business is good.

Starting up during a recession, however, has serious risks. But asking Nick why is something of a non-question – he's been an entrepreneur "since before the word ‘entrepreneur’ was cool", and starting companies is just what he does.

On the specifics he is resolute. "In a recession, there’s a depleted pot of finance, which is of course fundamental", Nick says. "But people ramble on about the availability of finance… yes, it’s hard to get hold of, but it’s not impossible. It demands greater fiscal probity and ideally a demonstrably skilled management team.

"The bigger issue now, I think, is that macro-economic issues are affecting the optimism, outlook and visible horizon for small businesses. All of a sudden people were (and are) thinking: what about Spain, what about Ireland? These huge macro-economic issues can affect me and my little company. That’s the real issue with starting up in difficult times."

But Nick insists that difficult conditions have hidden opportunities. "Change means opportunity in business – it just does. Evolutions in markets, disparities of income, location, access to raw materials, technologies… all these disruptive breaks represent new opportunities. Don’t get me wrong, times are tough, but there is still room for ventures that can absolutely pay off. Don’t expect an easy ride – you’ll need to get used to living on fresh air – but fortune still favours the entrepreneur’s key skills: resilience, doggedness, and sheer hard graft."

What can government do to help small and medium sized-businesses to succeed? "The problem for the government", Nick says "is that it only has two tools - money and laws, and they’re both pretty blunt instruments.

"There’s a big hoo-ha about red tape. Frankly that’s immaterial, absolutely meaningless. For small businesses – and 95% of British businesses have fewer than 5 employees – none of that is a concern and for the massive majority, red tape isn’t the problem."

In Nick’s experience, the major problem for small businesses that government ought to concern itself with is education. "Modern education has brought us a generation that is ill-equipped to conduct business, and that makes me very, very sad indeed.

"Problem-solving, ambition, the ability to comprehend long term strategy and construct an argument - these skills are not being taught, and it is crippling SMEs who are still finding it easier to recruit abroad, for example."

If you look at the figures, he says, Britain has dropped several places down the world education rankings, and it shows. "If the government really wants to help small and medium sized businesses," Nick says, "the best thing they can do in the long term is put their effort into education."

What currently hinders entrepreneurs? From Yoodoo’s experience, the problems entrepreneurs face are universal – finding the right idea and sticking with it. "There are entrepreneurs who are eternally glass half-full. That’s fine. But the real trick to being an entrepreneur is doggedness. Not doggedness to the point of stupidity, not re-mortgaging your house for something that’s never going to happen, but a determination to find new solutions to problems. Keeping that up is the main engine of entrepreneurship, and always will be. It’s a great British tradition – from Brunel to Dyson – to ask, 'Well, that’s not very good, so why can’t we do things differently?’"

Despite the economic uncertainties, Nick is full of encouragement for self starters. "I would never say to someone: don’t start your own business," he says. "Look, if I lose a client I might lose 10% or 20% of my income. If I’m employed and I lose my client, I lose 100% of my income. It’s madness to say that running your own business is so much riskier."

That seems to be Yoodoo’s message: if you’re self-employed it’s all up to you. But at least it’s not up to someone else.

This article originally appeared in Economia.

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Copeland must be Labour's final warning

Unison's general secretary says Jeremy Corbyn is a friend - but must also take responsibility for turning the party's prospects around. 

No one objective could argue that last night’s by-election results were good for Labour.

Whilst it was undoubtedly pleasing to see serial fibber Paul Nuttall and his Trumpian politics put in their place in Stoke, this was never a seat where the result should have been in doubt. 

But to lose Copeland – held by Labour for 83 years – to a party that has inflicted seven years of painful spending cuts on our country, and is damaging the NHS, is disastrous.

Last autumn, I said that Labour had never been farther from government in my lifetime. Five months on the party hasn’t moved an inch closer to Downing Street.

These results do not imply a party headed for victory. Copeland is indicative of a party sliding towards irrelevance. Worse still, Labour faces an irrelevance felt most keenly by those it was founded to represent.

There will be those who seek to place sole blame for this calamity at the door of Jeremy Corbyn. They would be wrong to do so. 

The problems that Labour has in working-class communities across the country did not start with Corbyn’s leadership. They have existed for decades, with successive governments failing to support them or even hear their calls for change. Now these communities are increasingly finding outlets for their understandable discontent.

During the 2015 election, I knocked on doors on a large council estate in Edmonton – similar to the one I grew up on. Most people were surprised to see us. The last time they’d seen Labour canvassers was back in 1997. Perhaps less surprisingly, the most common response was why would any of them bother voting Labour.

As a party we have forgotten our roots, and have arrogantly assumed that our core support would stay loyal because it has nowhere else to go. The party is now paying the price for that complacency. It can no longer ignore what it’s being told on the doorstep, in workplaces, at ballot boxes and in opinion polls.

Unison backed Corbyn in two successive leadership elections because our members believed – and I believe – he can offer a meaningful and positive change in our politics, challenging the austerity that has ravaged our public services. He is a friend of mine, and a friend of our union. He has our support, because his agenda is our agenda.

Yet friendship and support should never stand in the way of candour. True friends don’t let friends lose lifelong Labour seats and pretend everything is OK. Corbyn is the leader of the Labour party, so while he should not be held solely responsible for Labour’s downturn, he must now take responsibility for turning things around.

That means working with the best talents from across the party to rebuild Labour in our communities and in Parliament. That means striving for real unity – not just the absence of open dissent. That means less debate about rule changes and more action on real changes in our economy and our society.

Our public servants and public services need an end to spending cuts, a change that can only be delivered by a Labour government. 

For too many in the Labour party the aim is to win the debate and seize the perceived moral high ground – none of which appears to be winning the party public support. 

But elections aren’t won by telling people they’re ignorant, muddle-headed or naive. Those at the sharp end – in particular the millions of public service employees losing their jobs or facing repeated real-terms pay cuts – cannot afford for the party to be so aloof.

Because if you’re a homecare worker earning less than the minimum wage with no respite in sight, you need an end to austerity and a Labour government.

If you’re a nurse working in a hospital that’s constantly trying to do more with less, you need an end to austerity and a Labour government.

And if you’re a teaching assistant, social worker or local government administrator you desperately need an end to austerity, and an end to this divisive government.

That can only happen through a Labour party that’s winning elections. That has always been the position of the union movement, and the Labour party as its parliamentary wing. 

While there are many ways in which we can change society and our communities for the better, the only way to make lasting change is to win elections, and seize power for working people.

That is, and must always be, the Labour party’s cause. Let Copeland be our final warning, not the latest signpost on the road to decline.

Dave Prentis is Unison's general secretary.