APPG for Entrepreneurship Digest: April 2023

Perhaps even more so than at the New Year, the changing of the seasons from Winter into Spring (and most importantly, the return of sunshine) gives us fresh impetus to take stock and properly plan for the next twelve months. For us in particular, it also means we’re thinking about our forthcoming AGM (Tuesday 16 May, 16:00-16.30), and with that, a call for new voices to join the APPG. 

So, cutting straight to the chase – if you’re an MP or Peer and would like to get involved, please get in touch with our APPG Coordinator Katrina Sale at katrina@tenentrepreneurs.org.

For those who need a little more persuasion, here’s why we think you should. We’re a small but dedicated team passionate about entrepreneurship in all of its forms – from small traders right up to those innovators building what might end up as globally significant companies. We want to promote them on their journeys, highlighting the issues they face, and, ultimately, creating a Britain which is more encouraging and enabling for entrepreneurs seeking to make a difference in the world – not just turning a profit, but providing jobs, tackling social immobility, developing solutions to problems like climate change, and so much more. 

The main way in which we do that is through the research we conduct and publish. In the last twelve months, we’ve looked into four distinct policy areas: how to equip young people with the skills to succeed in a fast-changing world of work (Entrepreneurship Education); how to ensure the UK occupies a leading position in the new space race (Space Startups and Scaleups); how government programmes to boost productivity among smaller firms can be refined to deliver the best bang for their buck (Supporting SMEs Successfully); and making the case for tax relief on growth investment so that ambitious entrepreneurs have access to the capital they need to take their business to the next level (Funding to Flourish). 

Alongside this programme of research, we host a drumbeat of events throughout the year, put out regular Calls for Evidence on policy issues, convene policy experts at a virtual roundtable once a month, and, of course, every four weeks this newsletter lands in inboxes to give a regular update on what matters most to Britain’s thriving startup ecosystem. 

The entrepreneurs we work with are a fastidious and self-reliant breed, but even they can’t do it all on their own. It’s crucial that Parliamentarians understand and appreciate the challenges they face, and that’s where we hope to come in – bridging a gap between founders and legislators. We couldn’t do what we do without our fantastic Chair, Vice Chairs, Officers and Members to take up our campaigns and policy recommendations – speaking about them not only in the Commons and the Lords, but also at events and in the media. 

So once again, if you’d like to get involved, please get in touch with our APPG Coordinator Katrina Sale at katrina@tenentrepreneurs.org. (And for readers who aren’t Parliamentarians, why not suggest your local MP does?)

Adviser Update

Our Secretariat organisation, The Entrepreneurs Network, is looking for a new Researcher to join their team. A full job description can be found here – if you know someone who might be a good fit, there’s still a few days left before it closes. 

On Thursday 20 April they will also be hosting Benedict Macon-Cooney to discuss the Tony Blair Institute’s report A New National Purpose. You can register to attend by clicking here.

Then on Tuesday 25 April, they are launching an essay collection on the ingredients of innovation. Find out more and request a place by clicking here.

To celebrate the launch of our report on growth investment, we are hosting an event on Wednesday 19 April in the House of Lords. You can request a place by clicking here.

The Enterprise Investment Scheme Association EISA Awards are now open for entries. Categories include Best EIS Investee Company, Best SEIS Investee Company, and Entrepreneur of the Year. Learn more by clicking here.

The Centre for Entrepreneurs is hosting its 6th annual Incubator and Accelerator Network conference. Learn more and register to attend by clicking here.

The Enterprise Research Centre is hosting its 8th annual  State of Small Business Britain Conference. Learn more and register to attend by clicking here.

GEN UK are hosting their inaugural Founder’s Friday ‘Open Mic’ session – a chance to connect with other founders and entrepreneurs and discuss what you’re up to. Learn more and register to attend by clicking here.

In Parliament

In a debate following the Budget, the Chancellor Jeremy Hunt was eager to talk up Britain’s record on business: “Today, we face the future with extraordinary potential. The World Bank said that of all big European countries, we are the best place to do business. Global chief executives say that apart from America and China, we are the best country to invest in. We became the second country in the world to have a stock of foreign direct investment worth $2 trillion, and London has just pipped New York and 53 other global cities to be the best place in the world for female entrepreneurs.”

Also debating the Budget, Daniel Zeichner criticised the Government’s policy on R&D Tax Credits: “SMEs and start-ups are still worse off than they would have been before the changes that were made in the autumn. The Government are still cutting support for R&D in start-ups and small businesses – to the tune of £2 billion over the next five years, according to one estimate,” and adding: “I am afraid that this partial, half-hearted U-turn has not convinced our leading entrepreneurs and knowledge creators that the Government are serious about science and innovation or about the economic growth it stimulates.”

But Priti Patel hit out at the recent rise in Corporation Tax, saying: “that we need a simplified tax code underpinned by lower taxes. We have been talking about that for years in this House but we struggle to deliver it. Of course, businesses are frustrated by that because they are the ones that have to pay the costs of it. Entrepreneurs and small businesses are subject to more regulatory costs and more restrictions, which stifles innovation. We need to do much more in that space.” 

In the House of Lords, Baroness Lawlor struck a similar tone: “This economy prospers as a challenger economy into which new entrants and entrepreneurs can come and take pride, being rewarded, not penalised, for success. The high-tax, high-spending economy must be reversed,” as did one of our Officers, Lord Billimoria: “Putting up taxes is stifling growth and the recovery. As history has shown, when George Osborne reduced corporation tax from 28% to 20% and then to 19% – he actually wanted to go down to 15% – we actually increased our tax take. Will the Minister acknowledge that? By trying to get £18 billion more a year and putting up corporation tax by almost one-third in one swoop, from 19% to 25%, you are killing the goose that lays the golden egg.”  

Following the turmoil of Silicon Valley Bank, Shadow Chancellor Rachel Reeves asked how her opposite number would ensure that this didn’t lead to increased risk aversion from other banks, and that entrepreneurs would have access to the capital they need. The Chancellor responded by saying he will outline a “full solution to those issues in the autumn statement,” and also references moves made last year to unlock pension funds. 

Tim Loughton noted that: “Research and development is particularly resource intensive and in need of raising capital,” and asked what is the Government: “doing to help tech and life science companies raise money on the London markets?”

Responding was the Science Secretary Michelle Donelan, who highlighted that the Government have made: “significant reforms to improve London as a listing destination, and we continue to engage with sectors to secure the most innovative companies in the UK stock exchange.”