APPG for Entrepreneurship Digest: February 2021

One of the functions of the All Party Parliamentary Group for Entrepreneurship is to ensure that Parliament is kept up-to-date on what is needed to create and sustain the most favourable conditions for entrepreneurship.

Part of the way we do that is by improving the understanding of the policy issues that matter to entrepreneurs through research and events. For instance, we’ve published multiple briefing papers on topics such female entrepreneurship, tax reform, and enterprise education. We’ve also held virtual roundtables and hosted multiple report launches over the past year.

Over the past few months, two policy issues have been raised with us by entrepreneurs, business groups, and angel investors.

First, it has been rumoured that the Government is considering equalising the rate of tax on Capital Gains with Income Tax. The recent Office for Tax Simplification Simplifying by Design set out some of the choices on offer to the Chancellor. The reaction from entrepreneurs has been mostly negative. An open letter from entrepreneurship organisation E2E’s Shalini Khemka and APPG for Entrepreneurship Vice-Chair Lord Leigh has set out a number of concerns. In particular, they raise the issue that a higher rate of Capital Gains may discourage entrepreneurs from launching new businesses in the future.

This is an area of policy where there have been a number of changes over the past decade. Most recently, we saw Entrepreneurs Relief replaced with the less generous Business Asset Disposal Relief. In the Times, Paul Johnson of the independent Institute for Fiscal Studies (IFS) makes the important point that if rates were to rise without any wider reform of the tax system then “higher rates would deter investment and risk taking”. A recent report from the IFS attempts to ‘square the circle’ by explaining how the tax base can be modified to eliminate the negative effects of equalising rates. For The Entrepreneurs Network, I have written something along similar lines, highlighting the ways a Capital Gains Tax rise would affect entrepreneurs.

As an All-Party grouping, it is inevitable members will disagree on many issues, including tax. But we hope that through the APPG, Parliamentarians will at least come away with an understanding of how upcoming Capital Gains Tax changes could affect entrepreneurs and ways to mitigate those impacts.

Second, the National Security and Investment bill, which passed through the Commons this month and is currently under consideration in the Lords, creates new powers for the government to intervene in foreign takeovers and investments on the grounds of national security. A recent article from former competition regulator John Fingleton in the Financial Times raised a few concerns about how this will impact entrepreneurs. A key issue is the low investment threshold for mandatory notification. For example, if a US VC bought a 15% stake in a British AI startup, the company would have to notify regulators. Some angel investors have raised concerns to us that the risk of government intervention delaying the deal may discourage legitimate overseas investors. If any Parliamentarian wants to hear more about the concerns of business groups, entrepreneurs, and investors on this issue, we are happy to facilitate meetings.

Our next event

The APPG for Entrepreneurship is hosting a virtual roundtable with Baroness Chalker on Wednesday, March 10th to consider the following issues:

• Are there regional barriers to finance for SMEs?

• Can university research support growth for SMEs in underperforming regions?

• What is the impact of agglomeration effects on regional SME growth?

• What is the role of digital adoption in supporting growth for SMEs across the UK?

This webinar will inform a subsequent Call for Evidence and Briefing Paper on the theme of Levelling Up.  It’s part of a project the APPG is undertaking with the Enterprise Research Centre (ERC).

If you would like to attend, you can find out more here or get in touch with us.

From our Friends and Advisers

Octopus is asking Members of Parliament to nominate entrepreneurs in their constituency who they feel have made the most of lockdown, by starting or growing their business, innovating to survive the challenges, or supporting their staff and local community. Find out more here. 

The CBI’s Director-General Tony Danker will be holding a speech on Wednesday February 3rd from 14:00 to 15:00 on why the UK needs its first ever economic strategy. Find out more here.

Our new advisor, Roderick Beer of the Business Angels Association, draws our attention to their Business Angel Market 2020 report, produced in partnership with British Business Bank. It highlights the impact of COVID-19 on angel investment and issues such as gender, ethnic and regional diversity among angel investors.

In Parliament

In the Lords on January 20th, APPG Vice-Chair Lord Leigh (Con) asked the Government “what steps they have taken to ascertain the impact of the equalisation of Capital Gains Tax to income tax on entrepreneurs starting new businesses”. In the debate, he added: “while we all want tax to be as simple as possible, one has to recognise that capital gains tax is different from other taxes: it is to reward capital that is invested and is at risk… we need entrepreneurs, particularly serial entrepreneurs, to start new businesses in the UK.”

In response, Lord Sikka (Lab) asked “Does the Minister agree that by taxing capital gains at the same marginal rates as income tax, the Government could end many tax avoidance schemes?” and also raised the issue of the  regional impact of capital gains tax.

Lord Northbrook (Con) suggested to Baroness Penn (Con) that she “encourage [the Chancellor] also to take the view that, within reason, lower rates of tax, particularly capital gains tax, can lead to higher revenues for the Treasury”.

Lord Palmer (LD) argued that Business Asset Disposal Relief was not fulfilling its aim of stimulating investment and that it “has become a form of retirement relief for successful and wealthy entrepreneurs”.

CBI Chairman Lord Bilimoria (CB) made the point “raising taxes will stifle our recovery from the pandemic and hamper business investment and inward investment into the country, making our economy and businesses less competitive.” He stressed that “We need to encourage entrepreneurship and investment into businesses; that will create the jobs that pay the taxes, which will increase our tax take.”

Upcoming Events in Parliament

Treasury Committee - Oral evidence

Budget 2021

February 3rd - 2pm - 4.30pm

Virtual Meeting

APPG for Entrepreneurship: January 2021 Digest

With Parliament recalled to vote on the Prime Minister’s new public health regulations, clearly the priority for both Houses, and the country at large, must be stymieing the spread of the virus and vaccinating the population.

However, we need to be ready to go for an enterprise-led recovery. While much of this won’t be top of the political agenda, I wanted to just briefly update you on our plans for 2021 and how you can get involved.

Last year the APPG pivoted to hosting webinars to better connect entrepreneurs with parliamentarians during the pandemic. We will continue the webinars (even after the virus is defeated), but in 2021 we will build them around key research themes.

The main output will be pithy briefing papers on policy areas pertinent to entrepreneurs. These will be designed so politicians know (nearly everything) on the latest research on areas vital for supporting entrepreneurship in the UK. Each briefing paper will be a culmination of webinars to gain insights from experts and guide the scope, calls for evidence and broader independent research.

To kick things off, we are teaming up with the Enterprise Research Centre (ERC) on the theme of Levelling Up.

There is renewed political focus on tackling the UK’s high levels of regional inequality. Key to any agenda to ‘level up’ the UK’s underperforming regions will be policies to support the starting and scaling of new ventures.

The questions will evolve based on the webinars and evidence, but we will be considering questions such as:

• Are there regional barriers to finance for SMEs?

• Can university research support growth for SMEs in underperforming regions?

• What is the impact of agglomeration effects on regional SME growth?

• What is the role of digital adoption in supporting growth for SMEs across the UK?

MPs and Peers please get in touch if:

• you would like to speak on a panel on levelling up later in the year;

• you have ideas for any other themes you think we should be undertaking.

Everyone else please get in touch if:

• you would like to sponsor another policy area pertinent to entrepreneurs;

• you would like to be kept updated on the Levelling Up theme – including invitations to upcoming events.

We will also continue to host ad hoc webinars, while any organisations launching their own research pertinent to entrepreneurs should get in touch with me if they want to undertake a launch with the APPG.


From our Advisers

Our advisory board keeps us up-to-date with the latest initiatives to support entrepreneurship in the UK.

Enterprise Nation has found that a fifth of UK adults want to start a business in 2021. However, these wannabe business owners need more support to realise their ambitions. Over half of those who want to launch their own business would prefer to set up an evening or weekend side hustle, with health, beauty, exercise and wellbeing the top sectors. Find out more here.

Naomi Weir, Head of Innovation at the CBI, wants to alert you to the Tech Tracker 2020, which was published just before Christmas. The CBI and Microsoft report outlines common ‘digital dilemmas’, practical steps and policy recommendations to help businesses innovate. Find out more here.

Our Adviser Erika Brodnock wants to let you know they are embarking on phase two of their VC funded startup research, and innovation grant research in collaboration with Innovate UK and The Innovation Caucus. If you’re keen to find out more, just let me know and I’ll make the introduction.

Chris Haley, who sits on the beard of Global Entrepreneurship Network (GEN), wants to remind people that the GEN Hub is now up and running. Anyone is welcome to create a profile on it. Find out more here.

Sign up to our Newsletters here.

APPG for Entrepreneurship Digest: December 2020

The last month will have been tough for many. Small business owners have once again been forced to adapt to tough restrictions at short notice. The way many have adapted to protect jobs and serve consumers is worthy of celebration. Also worthy of celebration were the biotech entrepreneurs who announced the successful development of safe and effective Covid-19. The news was a remarkable reminder of the powerful contribution entrepreneurship can make to tackling our most pressing problems.

Coincidentally, last month also saw entrepreneurs get their well-deserved annual celebration with Global Entrepreneurship Week. It was an opportunity to highlight the importance of entrepreneurship and discuss the best approaches to supporting it. At the start of the week, I spoke on a panel alongside APPG for Entrepreneurship Vice-Chair Lord Leigh of Hurley and advisory board member Chris Haley on the theme “Reset for Growth”. Fellow vice-chair Lord Bilimoria also spoke as a part of the week.

Entrepreneurship will be essential to the economic recovery, and so it is great to see so many members of the APPG for Entrepreneurship actively engage with how to enable a reset for growth.

Most discussions of a post-Covid recovery soon come onto the topic of ‘building back better’ and meeting the UK’s Net Zero mission. Last month, the Prime Minister unveiled his ten point plan to tackle the climate emergency. While MPs debated SMEs' role in getting to Net Zero in Westminster Hall (more on that below), we also saw The Entrepreneurs Network, who serve as the Secretariat to the APPG for Entrepreneurship, launch a new report, Green Entrepreneurship, in partnership with The Enterprise Trust. To support the launch, multiple events were held with Labour (Luke Pollard MP), Liberal Democrat (Sarah Olney MP) and Conservative (Bim Afolami MP) parliamentarians alongside innovative green entrepreneurs such as JoJo Hubbard of Electron, Jo Bamford of Ryse Hydrogen, and Alex Fisher of Saturn Bioponics. The report highlights the common ground between the potential for entrepreneurs to solve key environmental challenges and the need for government to play a supporting role.

From our Advisers

Our advisory board keeps us up-to-date with the latest initiatives to support entrepreneurship in the UK.

Global Entrepreneurship Network UK, the driving force behind Global Entrepreneurship Week in the UK has launched the GENUK Hub. It’s a space where all those who are active in the UK’s entrepreneurial ecosystem can connect and share ideas and activities, either publicly across the community, or in private groups. We encourage you to check out.

Last month’s digest mentioned an APPG event hosted in partnership with the Institute of Economic Affairs to launch Dr Eamonn Butler’s new book ‘An Introduction to Entrepreneurship’ featuring Viscount Ridley and Lord Leigh of Hurley, alongside APPG for Entrepreneurship advisers Emma Jones and Annabel Denham. If you missed the event, you can now watch it online here. The IEA has also announced their latest Richard Koch Breakthrough Prize – a contest to find the best policy ideas to help ‘left behind’ areas with a £50k prize.

Extend VC’s Diversity Beyond Gender report analyses the extent of the UK funding gap to understand if bias beyond gender exists in the UK venture capital market and what opportunities lie ahead to make access to innovation and entrepreneurship more equitable. You can read it here.

It’s been a tough year for small businesses, but our friends at Enterprise Nation are doing what they can and have organised Gifted, an online Christmas market to support SMEs.

In Parliament

At the Spending Review, Mel Stride MP (Con) raised the issue of growth post-covid and asked the Chancellor if he “agree[d] that we should look to private sector businesses and entrepreneurs to provide that growth?” He also asked the Chancellor to “set out how he is going to ensure that, as we come out on the other side of the crisis, businesses and entrepreneurs are given every possible support and freedom to power our economy forward over the years ahead?”

The Chancellor replied stating: “I completely agree with my right hon. Friend that we will build our recovery through the dynamism of the private sector, and he is right about the power of entrepreneurship.” He also noted that he had announced “more funding for our start-up loan scheme, which provides discounted Government-backed loans of up to £50,000 for budding entrepreneurs to start their new businesses at the smallest level.”

In a Westminster Hall debate on ‘SMEs and the Net Zero Target’, Kevin Hollirake MP (Con) said: “If we are going to get to net zero, it is absolutely vital that the private sector is taken with us. It will provide the cash and capital to invest in new processes and new techniques.”

Alex Sobel MP (Lab) replied: “SMEs make up 99% of firms and 61% of the private sector workforce, and contribute £2.2 trillion in turnover, which makes them indispensable to the UK economy. They are extremely innovative, generate vast amounts of employment, and deliver economic prosperity and social cohesiveness. They are also disproportionately present in deindustrialised areas, and therefore present a unique opportunity to build back better.” He mentioned that multiple SMEs in Leeds have been set up with the express intention of protecting the local and global environment and highlighted a few including “Last Mile Leeds, Revive IT, the Phoenix Works and Revive Leeds.”

Scott Mann (Con) followed Sobel in showcasing great green SMEs in his constituency: “CleanEarth Energy in Wadebridge is helping people to refit their homes to provide energy-efficient solutions. Also playing its part is the Bude ReFILL shop—a brilliant shop that is designed to eliminate the need for plastic packaging by encouraging customers to bring their own containers to refill. Bude Cleaner Seas is working on a couple of brilliant solutions to cut plastic pollution?”

Gareth Davies (Con) referenced the newly announced green bond and suggested that the Government “use the proceeds from that green gilt to help finance the British Business Bank to hypothecate its funding to help SMEs prepare for climate change and our net zero targets, and also to help them innovate and capture the opportunities.”

APPG for Entrepreneurship Digest: October 2020

In the past few months since we last sent out an update, the APPG for Entrepreneurship has hosted multiple events covering a range of topics from ethnic diversity in entrepreneurship to the future of funding. We even helped launch a book on entrepreneurship.

On September 9th, APPG Vice-Chair Lord Leigh discussed the future of funding, floating and selling your business with Mishcon De Reya’s Kevin McCarthy. It was a great opportunity for businesses, policymakers and parliamentarians to learn about the options available for entrepreneurs. The discussion covered everything from the impact of Covid-19 on mergers and acquisitions to whether entrepreneurs should prefer debt or equity. Lord Leigh is a great example of the expertise the APPG for Entrepreneurship can draw from, having himself founded Cavendish Corporate Finance (now part of FinnCap), one of the UK’s leading mid-market M&A advisers. You can watch it here.

Lord Leigh also joined his colleague Viscount Ridley to launch Dr Eamonn Butler’s new book An Introduction to Entrepreneurship on October 21st where they discussed the role entrepreneurship plays in boosting innovation, progress, productivity and growth – and why is this often overlooked in economics textbooks?

Finally, this week in partnership with Natwest we hosted the Exchequer Secretary and Minister for Equalities Kemi Badenoch MP to discuss how to support ethnic diversity in entrepreneurship. She heard from entrepreneurs such as Melanie Eusebe, founder of The Black British Business Awards, and The Black Farmer Wilfred Emmanuel-Jones on what they think needs to be done. We also heard from academic Professor Monder Ram OBE of the Centre for Research in Ethnic Minority Entrepreneurship (CREME).

If you are an MP or Peer interested in the issue of female entrepreneurship or business resilience then The Entrepreneurs Network (who are the APPG's secretariat) in partnership with Barclays would like to invite you to speak at an upcoming event on November 5th. You can find out details here.

On a similar note, parliamentarians may also be interested in the latest report from the Female Founders Forum (a project by The Entrepreneurs Network and Barclays) to champion female entrepreneurship. The report looks at how equity-backed female-led startups responded to the covid-19 crisis. You can read it here.

From our Advisory Board

Our advisory board keeps us up-to-date with the latest initiatives to support entrepreneurship in the UK. The CBI’s Naomi Weir draws attention to the CBI’s free biweekly webinar series CBI@10. The next one is on 9 November at 10am and you can book to attend here. She also notes that the CBI’s annual conference is next week from Nov 2nd to 4th and that there are events available for non-members. You can find the full programme of events here.

Simon McVicker highlights a recent McKinsey Poll of European SMEs that showed that 1 in 5 are concerned about meeting payment obligations and retaining employees. He also notes a report from King’s Business School which interviewed more than 350 entrepreneurs at the height of the first coronavirus lockdown to map and evaluate the impact on their business and on them personally. Nearly two thirds (61%) reported that the future existence of their business was under threat due to a slump in trade. Researchers said this suggested that there are potentially 16.6 million UK jobs at risk.

Erike Brodnock and the team at Extend Ventures are finalising the Diversity Beyond Gender report, which offers a state of the nation on diverse investments over the last 10 years. It should be out in the next week or so, so keep your eyes peeled.

Dr Christopher Haley of Nesta notes that Global Entrepreneurship Week is fast approaching (16-22 November). The GEN-UK team are keen to hear about any events which people may be organising, and are also looking for more speakers and chairs. Please drop a line to the GEN team at hello@genuk.org if you're interested.

In Parliament

In a debate on Social Care Workers in the Lords, Lord Crisp (Crossbench) championed the Tribe Project, an initiative “set up by a successful digital entrepreneur and [which] is now being used by six local authorities to predict the needs for care, match people with carers, and, very importantly in this context, support professional carers in setting up independently as microenterprises.”

In the Commons, Antony Higginbotham (Burnley) (Con) noted “Hundreds of millions of pounds have gone into Lancashire to support our businesses and our people. In the past week alone, £42 million has gone into the county to support businesses and people. That will support the landlord and landlady of the village pub and the entrepreneur who started their new business only a matter of weeks ago.”

In a Westminster Hall debate on the Jet Zero Council, Richard Graham (Gloucester) (Con) highlighted that “huge work is going on between Electroflight—an ​entrepreneur and innovator-led company—and Rolls-Royce, to create the world’s first electric aviation engine”.

In the Commons Chamber, Caroline Lucas (Brighton, Pavilion) (Green) noted gaps in support for freelancers and the self-employed. She said “It is not good enough for my Brighton constituent who was working full time with the BBC as a PAYE freelancer, so he is ineligible for either furlough or self-employment support”.

In the same debate Richard Fuller (North East Bedfordshire) (Con) said: “It is important that the Government get to grips with the issue of those who feel that they have been excluded, because the self-employed provide so much for our economy. They are the innovators. They are the people who will undercut competitor prices to deliver a better product.”

SME Policy Pitch

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network is hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19. 

In our latest APPG for Entrepreneurship session, we heard from a panel of small business experts who pitched their policy ideas to Small Business Minister, Paul Scully MP on how to support the economic recovery for the UK’s SMEs.

This session coincided with the launch of Upgrade, a new research report from The Entrepreneurs Network, commissioned by Xero on closing the digital gap and lifting productivity for SMEs. 

We heard an update from Small Business Minister, Paul Scully MP. We then heard pithy policy pitches from small business experts including Sam Dumitriu, Research Director at The Entrepreneurs Network, Irene Graham, CEO at The ScaleUp Institute, Gary Turner, Co-Founder of Xero UK and Dom Hallas, Executive Director of Coadec.

Here are some of the most thought-provoking insights from the session. You can view this on our YouTube channel.

Highlights & Insights from our Speakers

In his opening remarks, Paul Scully MP touched on the acute impact that lockdown has had on SMEs:

“76% of SMEs have seen a reduction in productivity of at least 13% and a significant decline in sales. 67% of SMEs have made less than 75% of their normal sales”

He also talked about some of the conversations which have been accelerated by COVID-19 including flexible working and digital take-up:

“We recognise the importance of rapidly improving utilisation and increasing adoption of technologies”

In the first policy pitch, Sam Dumintriu spoke about the digital revolution which has occurred since he started writing Upgrade. He started with startling statistics on the positive impact of digital take-up, not only for SME productivity but also the UK economy:

“If the UK was able to double micro-business uptake of key digital take including customer relationship management software, web-based accounting and cloud computing it would lead to a £16 billion boost to GDP”

He finished with some recommendations on how we could encourage SMEs to make the most of new technologies to improve their productivity:

“Businesses don't trust civil servants for advice on how to run their businesses. They fundamentally only really trust other business owners. Where possible the government should outsource advice to trusted business groups and fund that with support”

Xero UK’s Gary Turner stressed the importance of technology as a critical tool to help SMEs operate and plan for future disruptions:

“[COVID-19] has shown us that companies can put digital delivery at the core and will fare better in more circumstances when they do. Technology is a critical tool to help firms get, sell and operate online to be ready for future disruptions”

During his pitch, he made some key recommendations to help SMEs bounce back, including improving their financial situation, making it easier to access finance and closing the skills gap: 

“As the economy reopens and small firms look to rebuild. I believe that we must close the digital divide to help small firms bounce back more quickly”

Dom Hallas spoke about a survey Coadec conducted on R&D credits and discussed how a similar financial bonus could be used as a lever by the government to drive adoption of new technology:

“69% of tech start-ups we surveyed said that R&D tax credits were an important part of their cash flow and survival”

He pitched a tax credit for SMEs who use technologies that have been proven to increase productivity:

“If providers could prove that [a] technology solution genuinely improved productivity… they would be eligible for a tax credit”

In the final policy pitch Irene Graham of the Scale-Up Institute spoke about the importance of peer-to-peer networks and opening up data to help connect SMEs to the broad initiatives that government and the private sector have:

“We have run some really interesting pilots using the data that HMRC have in really targeting and connecting businesses into what is available”

Questions & Recommendations

During the Q&A session, we touched on a range of key issues. 

One attendee spoke about the challenges that the self-employed have faced accessing support schemes during COVID-19 and asked Paul Scully MP what the government is doing to address these gaps?

Paul Scully MP spoke about some of the government support schemes that have been designed to support the self-employed, including the Bounce Back Loan scheme, and addressed concerns that the self-employed are falling through the cracks. He reassured the audience that the government is aware of these issues.

Another attendee spoke about data transparency in the US for loans that have been taken out during COVID-19 and asked whether the UK could embrace the same level of transparency?

Paul Scully MP noted that the British Business Bank hasn’t been advised as of yet to release data on the businesses that have taken out Bounce Back loans but that they are looking at ways they can share this information.

Irene Graham added to this, speaking about the opportunity to use data to create more transparency on Bounce Back loan lending and the opportunity to also look at ways this could be done in the future in other sectors. 

Gary Turner spoke about the importance of improving and enriching data from a capital perspective. He addressed some of the issues that SMEs have faced during COVID-19, including applying for Bounce Back loans with outdated records. He stressed that open data is an important part of the journey to enriching company data.

One attendee asked how the government could address the issues that SMEs face tendering or obtaining contracts to sell their products and services to government funded services, like the NHS.

Paul Scully MP spoke about the government's plans to address these concerns. 

“In terms of government procurement, we are trying to make it easier for SMEs to access government contracts and government tendering”

Irene Graham responded speaking about how data could be used by government-funded services, like the HMRC to pinpoint SMEs that would be best placed to address and provide their goods or services.

An attendee queried whether universities could be doing more to educate and support SME owners on using technology to improve their businesses. 

Paul Scully MP agreed that it would be great to embed these types of programmes in universities. He spoke about initiatives like BeTheBusiness and suggested that advice could be filtered through Growth Hubs to link up with universities and SMEs better. 

Sam Dumintriu spoke about a study which identified the value of doing a health check on your business. He suggested that it could be valuable for people like accountants to give more support to business owners to identify potential opportunities and improve productivity.

One attendee asked how young tech-savvy people could be connected to SME owners to help improve their productivity.

Gary Turner suggested that there should be initiatives to connect unemployed tech-savvy people with SMEs to help manage their online activities. 

Sam Dumintriu agreed that it is important to support these initiatives and gave an example of a project being funded by Nominet, which was identified in Upgrade, that pays young people who are out of work to do short-courses and have placements with SMEs. 

Another attendee touched on the previous question and asked what kind of hubs were out there to connect SMEs with young people.

Paul Scully MP spoke about the importance of ensuring that government-sponsored hubs provide SMEs with quality advice:

“My challenge that I have set myself is to make sure that business advice and support on digital is consistent across the 38 Growth Hubs”

The speakers finished with some closing remarks. In his closing remarks, Gary Turner stressed the importance of improving SME productivity to create future job opportunities:

“Future employment is not going to come from big business or government, it is going to come from the SME community”

We will have more APPG for Entrepreneurship webinars coming up after recess. If you are interested in finding out about these, you can sign up here.

Supporting Local Economic Growth

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network is hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19. 

In our latest APPG for Entrepreneurship session on Supporting Local Economic Growth, we heard from an expert panel of speakers about what is being done in the face of COVID-19 to support local economic growth and what can be done to ensure an entrepreneur-led recovery across the UK.

We heard from Gagan Mohindra, Conservative MP for South West Hertfordshire. We also heard from Chairman of the Hertfordshire LEP and the LEP Network, Mark Bretton, and Head of Data at ODILeeds, Co-founder of TheDataCity.com and Founder of imactive, Tom Forth. 

Here are some of the most thought-provoking insights from the session. You can view this on our YouTube channel. 

Highlights & Insights from our Speakers

In his opening remarks, Gagan Mohindra MP welcomed Rishi Sunak’s recent statement, highlighting the announced reduction in VAT for the hospitality sector. He suggested that policy makers play an important role in creating an environment that allows businesses to flourish:

“The most important thing that I, as a politician can be judged on is the impact that I can make through policy within your life.”

Mark Bretton then spoke about the LEP Network and the feedback they have provided to Government during the COVID-19 pandemic to support local business:

“We have been very careful to give constructive, but important feedback on all the interventions that have been made to ensure that they are relevant. Where there have been gaps in schemes that we believe we can find a resolution to fill, we have been doing that.”

He also addressed the interventions that have been put in place by the LEP Network at the local level to support economic growth:

“Every LEP has put together three or four different schemes during the crisis, so over 100 schemes around the country, to make focused interventions to help our businesses.” 

Tom Forth mentioned his research and the gap that he has observed between performance in the North and South of the UK: 

“The UK’s GDP per capita is the lowest in Northern Europe… but that is not uniformly a low performance. The South East of England is one of the most productive and prosperous regions in Europe. The North of England and the Midlands are among the weakest economies.”

He suggested that the root of the UK’s problem with local economic growth is that government decisions are centralised and predominantly London focused. He also spoke about some of the positives of having a centralised government:

“We are culturally entrepreneurial… that is due to things that support local entrepreneurial activity and growth including a fair legal system, good press, the English language, easy company law, low taxes and low cost of employment”

He finished with some recommendations to drive local economic growth in the UK: 

“I think the uneven access to infrastructure, to state research and development funding, and to government support is a big issue… I think that solving that problem involves having a smaller central government”

Mike Jackson from Tech Nation also joined the panel and introduced some of the projects they are running to support economic growth at the local level:

“The real sea change that we have completed at Tech Nation is moving from a London-centric Tech City model… to what we believe is a reflection of the UK tech ecosystem.”

He addressed some of the challenges that Tech Nation have observed in local areas and their plans to work with local ecosystems to share best practice across the UK:

“We do think that national institutions still have a role in democratising access to scarce resources and sharing best practice.”

Questions & Recommendations

 During the Q&A session, we touched on a range of key issues. 

One attendee asked whether MPs could use LEP Networks to support local businesses in their area?

In response, Gagan suggested that although MPs do not ordinarily get involved within LEP Networks, the correct model could be to move funding closer to local businesses that need it:

“From my experience of local government, politicians can do so much, but we need entrepreneurs, business people and specialists in other fields, like the third sector to take on the mantle and drive it forward.”

Mark argued that there should not be a diversion of effort but rather a rebalancing to ensure that the leveling up agenda is carried forward across the UK.

Another attendee mentioned the Shared Prosperity Fund and asked how important this type of policy is in terms of supporting local economic growth?

Mark suggested that the funding is important as the UK leaves the EU and during this pivotal stage, where LEP Networks are collaborating with local government to support local businesses through the COVID-19 pandemic.

Gagan echoed Mark’s thoughts and touched on the challenges that the Government has faced during the pandemic, including it’s evolving funding plans:

“I can’t guarantee that the Treasury has much money left to fork out [to support LEPs]… but I will continue to fight that corner because I know the value of it.”

In response, Tom suggested that we should look to other countries in Europe, like France, that have schemes which have implemented COVID-19 business support schemes at a regional level:

“This idea that we would have good outcomes from collaboration and uniform funding is really quite bizarrely British.”

An attendee asked whether more money should be available and collected at a local level?

Gagan spoke about his drive to push value for money at a local level during his time as finance lead for a large county council. He took the view that there isn’t an easy answer and reinforced the point that policy makers should focus on creating an environment for entrepreneurs to flourish.

Mark responded by echoing Tom’s thoughts that support efforts should be localised and that clear interventions should be made locally.

One attendee asked how LEPs could be evaluated, specifically whether there were incentives for good LEPs to expand and bad LEPs to change or withdraw and what data LEPs or Local Government should be publishing to make these evaluations easier?

Tom addressed some of the challenges that the LEP face with publishing their data.

Mark added that LEPs are assessed by Whitehall annually on metrics including governance, delivery and their strategic plan. He suggested that LEP objectives should be better aligned with business objectives going forward and best practice sharing should be encouraged:

“I think that what is going to come out of this is a much clearer set of metrics which we use to measure LEPs.”

We will have more APPG for Entrepreneurship webinars coming up after recess. If you are interested in finding out about these, you can sign up here.

Supporting Employment in Challenging Times

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network is hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19. 

In our latest APPG for Entrepreneurship session on Supporting Employment in Challenging Times, we heard from an expert panel of speakers about the latest legislation and schemes designed to support employment and considered whether reform might be necessary in light of COVID-19. 

We heard from Seema Malhotra, Labour MP for Feltham and Heston, and Shadow Minister for Employment. We were also joined by employment experts including Sharon Tan, Partner in the Employment department at Mishcon de Reya and Julia Rouse, Professor of Entrepreneurship in the Centre for Decent Work and Productivity at Manchester Metropolitan University.

Here are some of the most thought-provoking insights from the session.

Highlights & Insights from our Speakers

Seema Malhotra MP noted the importance of supporting individuals who are losing their jobs due to COVID-19 through the crisis to ensure they are not unemployed in the long-term. She suggested that we should learn from previous downturns but stressed the importance of the government having an innovative, thoughtful, and well-researched response to the unique challenges of the COVID-19 pandemic:

“I’m not going to pretend that this is a challenge that we have all the answers from a roadmap from the past.”

She also spoke about how the COVID-19 crisis has disproportionately impacted certain demographics:

“One area that has emerged very evidently is young people being hit harder by this recession, particularly in the first few months where we saw…. under 35’s being almost 50% of those who were registered as job seekers.”

“We have seen women, single parents, young people, ethnic minorities, the self-employed being harder hit statistically then others in the unemployment figures but also in the loss of income”

She raised the need to reform the employment system to support entrepreneurs. 

“I think we need a debate about the advice, legislation, and policy around entrepreneurship so that we are more robust within a social security framework that works in partnership with people and recognises the life cycle that people go through in their employment”

Sharon Tan discussed the important role that entrepreneurs and employers play in avoiding large scale unemployment:

“[The UK] has been at the forefront of innovation and development in recent years and we are going to need to continue in that vein, particularly given Brexit and now the pandemic”

She drew attention to the opportunities that the COVID-19 has created for businesses:

“Disruption inevitably brings with it new opportunities and these new ways of working represent opportunities to develop technical solutions and opportunities in terms of the way employers use their office space”

She also spoke about the ‘red flag’ situations where it may be inappropriate for employers to insist on employees immediately returning to the workplace and the options that fall within the existing employment law framework. 

Julia Rouse covered the disproportionate impact that the COVID-19 pandemic has had on the self-employed, despite the government’s efforts to provide them support:

“In total, we estimate that 756,000 self-employed were excluded from the self-employment income support scheme”

She also mentioned the additional challenges that women on maternity leave faced in applying for the Self-Employment Income Support Scheme and how this informed her decision to bring forward plans to form a Women's Enterprise Policy Group:

“The Self-Employment Income Support Scheme maternity blunder signals to us the need for more gender-aware policy making”

She stressed the importance of solutions for the self-employed which reflect their individual circumstances:

“We will have a severely dented generation of startups and that will have serious social and individual consequences”

Questions & Recommendations

During the Q&A session, we touched on a range of key issues. 

One attendee asked Seema Malhontra MP what kind of policy levers outside of employment needed to be pulled by the Government to support individuals through the pandemic. 

In response, Seema echoed concerns that some groups are receiving generous support while others are being missed by the system. She suggested that reform may be needed:

“[It is] partly a consequence of how tax and economic policy has been developed over generations and how some of that might have to catch up with the changing world of work”

Another attendee asked what more can be done to support entrepreneurs and how we can bridge the skills gap for apprentices. 

In response, Julia Rouse spoke about her reservations about a self-employment led approach to unemployment. 

“I think we need to be cautious and clever in the way we think about self-employment, more as a skill development process… rather than it all being about business startup ignoring the fact that a lot of these businesses do not thrive”

In response, Sharon Tan suggested that an apprenticeship scheme, like the one Mischon de Reya has recently rolled out, has the potential to be an incredible tool for promoting social mobility. 

Seema suggested that there needs to be a more systematic response to supporting entrepreneurship and that LEPs may play an important role in this.

“Employers may have to think a little further than they have before. Where is there an opportunity for them to create more employment opportunities? Because that has got to be a part of making the next period successful for our citizens across the country”

We have a few more APPG for Entrepreneurship webinars coming up in the next few weeks. If you are interested, you can sign up here.

APPG for Entrepreneurship: July 2020 Digest

July has been an active month for the APPG for Entrepreneurship. While Parliament is still closed for events, we have been busy hosting webinars on topics from digital adoption to local economic growth.

It seems APPG webinars are like buses. You wait weeks for one and then you get two on the same day. We kicked off Thursday July 9th with an SME Policy Pitch to Paul Scully MP (Conservative), Minister for Small Business, where we heard from Xero co-founder Gary Turner, Dom Hallas, (Executive Director, Coalition for a Digital Economy), Irene Graham (CEO, The ScaleUp Institute) and myself, Sam Dumitriu (Research Director, The Entrepreneurs Network).

The event marked the launch of Upgrade, a new report by The Entrepreneurs Network and Xero, which looked at building on the lockdown shift to digital and increasing digital adoption by SMEs. This matters because if the UK’s 1.1m micro businesses doubled their uptake of key digital technologies, it would lead a £4,050 average productivity boost for the 4.09m workers employed by micro businesses, restoring four-fifths of lost productivity growth since the financial crisis, enabling businesses to bounce back faster post-lockdown. 

A number of themes recurred throughout the event, including the value of business networks, the need to modernise the R&D tax credit, and the potential to use young people to drive adoption. The conversation on digital adoption is moving fast, with the Telegraph reporting that “Officials are understood to be exploring ways to revive companies’ lagging digital adoption rates amid hopes Covid-19 will force bosses to embrace productivity-boosting investments”.

We followed up the lively discussion about digital adoption with a roundtable on local economic growth. Entrepreneur turned MP Gagan Mohindra (Conservative) discussed what is being done in the face of Covid 19 to support local economic growth with Mark Bretton (Chairman of Hertfordshire LEP and the LEP Network) and Tom Forth (co-founder and CTO at TheDataCity.com, Founder of imactivate, and Head of Data at ODILeeds). The discussion covered a lot of ground from devolution to data, and provided good grounding for further debates. 

Just ahead of the Summer Recess, we hosted You’re Hired! Supporting Employment in Challenging Times. It featured Shadow Minister for Employment and APPG for Entrepreneurship Chair Seema Malhotra MP (Labour) alongside Mischon De Reya’s Sharon Tan and Julia Rouse, Professor of Entrepreneurship in the Centre for Decent Work and Productivity at Manchester Metropolitan University. It was an opportunity for entrepreneurs and parliamentarians to learn more about how the schemes designed to support employment are working, and consider reforms that might be necessary in light of Covid-19. (It will be available to view online soon).

If you missed any of the events, then you’re in luck as we’ve made them available via the APPG’s YouTube channel.

From our Advisory Board
Our advisory board keeps us up-to-date with the latest initiatives to support entrepreneurship in the UK. Enterprise Nation founder Emma Jones draws our attention to the Amazon Small Business Accelerator, a new “free, online educational programme for anyone who wants to start a new online business or grow an existing one” created by Enterprise Nation in partnership with Amazon. 

While Naomi Weir of the CBI keeps with the digital adoption theme and shared a new report, “Building a world class innovation and digital economy“ which sets out recommendations for an innovation and tech led recovery. She’s also shared their Coronavirus Hub, which features their latest webinar series on race and equality.

In Parliament

In the House of Commons the Rt Hon Liz Truss MP, Minister for Women and Equalities answered questions about Female Entrepreneurship and Covid-19.

She noted that according to the Government’s Rose review, if women started and scaled businesses at the same rate as men then £250bn of value could be added to the UK economy and that this opportunity should be seized upon for the post-coronavirus recovery.

Craig Tracey MP (Con) talked about how he has been working to deliver a set of women’s business hubs across the UK. He asked what steps the government were taking to make sure the covid recovery benefits women across the UK? Truss responded that growth hubs and mentoring schemes were to be part of the levelling-up agenda and will continue to be part of government policy.

Caroline Noakes MP (Con) pointed out that it will be harder for women to take advantage of these opportunities if they do not have access to childcare. Truss replied noting that more than 90% of nursery schools were open by 4 June and that she would be in discussions with the Secretary of State for Education to ensure that childcare is reformed to make more places available.

In a session in the Commons on UK Telecommunications, the Secretary of State for DCMS said that while the UK is going to stop using Huawei equipment to build the UK’s 5G networks, the Government is still committed to making the whole country full fibre by 2025.

In a session on the UK Tech Sector with the Parliamentary Under Secretary of State for International Trade, Alan Mak MP (Con) asked what the department was doing for the UK tech sector to help it export. Graham Stuart (Con) responded by saying that the Secretary of State had launched a new tech strategy including a digital trade network across the Asia Pacific (See this Policy Update from The Entrepreneurs Network for more info). Alan Mak then asked what the department was doing for health-tech start-ups specifically and Stuart responded to say that they have produced a directory of digital health companies which provide Covid-19 solutions and they have shared that with their international network in response to inquiries from other governments.

APPG for Entrepreneurship: June 2020 Digest

Since our last newsletter, we’ve seen two major policy announcements. 

First, Chancellor Rt Hon Rishi Sunak MP extended the Job Retention Scheme to October. However, the scheme will be less generous in the coming months, with employers asked to pay national insurance and employer pension contributions from August. Taxpayer contributions are dropping from 80% to 70% in September, from 70% to 60% in October with employees expected to make up the difference.

Second, in response to calls from a 113-strong cross-party group of MPs, those eligible under the Self-Employment Income Support Scheme (SEISS) will be able to claim a second and final grant in August, worth 70% of average monthly trading profits for three months. The letter was a good example of the value of MPs working across parties to support entrepreneurship. Through the APPG we hope to support more cross-party work.

As the debate in Parliament shifts from mitigating the impact of lockdown to re-opening the economy, we have been doing our part to engage with the issues by hosting webinars with parliamentarians discussing issues such as disability, innovation, international trade, and how to secure an economic recovery. Speakers have included Andrew Griffith MP (Con), John Penrose MP (Con), Katherine Fletcher MP (Con), Baroness Kramer (LD), and Dr Lisa Cameron MP (SNP). 

If you weren’t able to catch our first three webinars, you can read pithy summaries and rewatch them on YouTube:

–  Disability and Entrepreneurship in the Time of Coronavirus, with Dr Lisa Cameron MP, Liz Johnson and Kush Kanodia.
–  Economy, Technology and Bouncing Back, with John Penrose MP, Gary Richards (Mishcon de Reya) and The Rt Hon Baroness Kramer.
–  Innovation, International Trade and Economic Recovery, with Katherine Fletcher MP, Chris Hulatt (Co-founder Octopus) and Andrew Griffith MP.

These wouldn’t have been possible without the support and expertise of our sponsors Octopus and Mishcon De Reya.

We’ve had great interest in the webinars and are planning to run more, with one more already announced (see the upcoming events section below). If you want to get involved as a parliamentarian or a potential sponsor, please get in touch with Philip Salter.

London Tech Week

London Tech Week is usually a great opportunity for Parliamentarians to meet and learn from some of the UK’s leading tech entrepreneurs. While social distancing measures may have put a dampener on the occasion, it is worth noting that during the week, the Secretary of State for International Trade Rt Hon Liz Truss MP announced a series of measures to promote tech exports. This Policy Update from The Entrepreneurs Network (Secretariat for the APPG) summarises and explains how the key measures will affect entrepreneurs.

In Parliament

In the discussion on the Coronavirus Business Interruption Loan Scheme Baroness Lane-Fox said that as companies are required to have raised £250 000 to be eligible for the future fund scheme, diverse funders will be put at a disadvantage, she asked what the Minister will do to “ensure that the future fund will neither deepen existing inequalities or perpetrate new ones” and then went on to note that all 13 of the advisers to the fund are men. Lord Calahan responded that the comprehensive package was designed for any business facing difficulties during this period and that “start-ups may be able to access CBILS or the bounce-back loan scheme if they fulfil the eligibility criteria”.

During the fifth sitting of the finance bill Andrew Jones MP talked about the new proposed digital services tax and why he believed it to be the “right thing to do”. He acknowledged that “we must do all that we can to encourage the shift into a digital economy” but criticised the pressure which online retail puts on high street businesses, a trend which has been “compounded … by the current crisis”. He said that “high streets have a role beyond their traditional economic role, they have a social role and bring people together” and talked about how the digital services tax will ensure a level playing field between “bricks and clicks”.

He went on to say that he had concerns about the impact that the tax could have on start-ups but that concern had been dealt with by the threshold at which the tax becomes payable, meaning it only captures larger businesses.

In the motion on Covid 19: Businesses and the Private Sector Baroness Noakes called for an end to what she dubbed the “draconian Covid 19 restrictions” as soon as possible. She said there should be “a holiday for SMEs from all non-essential regulations” and that “we need to move from risk aversion to sensible risk taking”.

In the Immigration and Social Security Co-ordination (EU Withdrawal) Bill debate Jonathan Gullis MP said he was confident that the new system will “attract the brightest minds” which he said is of particular interest to his constituency Stoke-on-Trent North. He said he was a vocal advocate for “silicon Stoke” and they are working with stakeholders, including tech start-ups, to push forward advancements in 5G and advanced ceramics.

Innovation, International Trade and Economic Recovery

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network is hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19.  

In our latest APPG for Entrepreneurship session on Innovation, International Trade and Economic Recovery, we heard from parliamentarians and expert speakers on how the start-up community will use new technology and innovation to move forward post lockdown and the opportunities for start-ups looking to export after coronavirus. 

We heard from Katherine Fletcher, MP for South Ribble and Andrew Griffith, MP for Arundel & South Downs and former Chief Business Adviser to the Prime Minister. To give an entrepreneurs perspective, Chris Hulatt, co-founder of Octopus and Adviser to The Entrepreneurs Network, joined us. 

Here are some of the most thought-provoking insights from the session. You can view this on our YouTube channel. 

Highlights & Insights from our Speakers

Katherine Fletcher MP spoke about how the UK can increase the pipeline of businesses adding significant revenues to their business through exports. She suggested that sole traders and SMEs should take advantage of platforms like Etsy which are available to help business owners get their products online, without the huge cost of an IT department.  

“The tools that the modern revolution has provided us with, especially in the last five years, allow us to have global access to products with a good front end”

She concluded with a modernised take on Napoleon's depiction of the UK, as a nation of shopkeepers.

“What the Internet and the improved integration of online tools allows us to do is to be a global nation of shopkeepers”

Chris Hulatt spoke about how the coronavirus pandemic has impacted the environment for start-up companies in the UK:

“Consumer and corporate behaviour has changed for good. We have had many years of evolution in the space of ten weeks and I think that is creating opportunities for entrepreneurs to play their part in reshaping the economy” 

He suggested that the crisis has accelerated opportunities for entrepreneurs who tend to be more flexible and adaptable:

“Entrepreneurs can move quickly, they can come up with solutions, they can spot opportunities and they can evolve their business models. That nimbleness is going to be so powerful”

He proposed that the Government should rally behind entrepreneurs with policies that support them in order to create more jobs and tackle unemployment:

“At a time when most large companies are going to be focused on cutting costs, it is the high-growth small businesses that we should look to for economic growth”

Andrew Griffith MP spoke about the opportunity that has come from the accelerated adoption of new technology and remote working practices: 

“The UK economy needs innovators more than it has ever needed them before. We have already seen more changes in some sectors in six to eight weeks, then you would normally expect to have happened over a couple of years” 

He suggested that the coronavirus pandemic has created an opportunity to unlock new markets that were not previously available to the UK:

“Almost alone, we have the opportunity to reset our trading opportunities with the world”

Questions & Recommendations

During the Q&A session, we touched on a range of key issues. 

One attendee asked about how we can keep regional partnerships open after Brexit and post-lockdown.

In response Katherine Fletcher MP suggested that the Government is planning on keeping the UK open for business and continuing to trade with its neighbours.

Chris Hulatt added that the UK should be open to expand into other markets, like Asia. 

A question was raised about how the UK can attract innovators, entrepreneurs and capital, specifically from Hong Kong.

Andrew Griffith MP suggested that the Government should be both clear in its messages, that talent is welcome to the UK and should be unabashed when speaking about the talent that the UK has.

In response Chris Hulatt suggested that the UK should talk more about the qualities that attract entrepreneurs to the UK.

Katherine Fletcher MP observed when speaking about the UK, we shouldn’t just be focused on London.

“The world is starting to realise that we are four different nations and we do have genuinely different opportunities for international entrepreneurs”

One person asked about when the UK can expect for lockdown restrictions to be lifted, so that individuals can attend events in other countries.

In response Katherine Fletcher MP suggested that guarantees couldn’t be given with regards to international travel. However, she stressed that opening the UK’s borders is important to its economic recovery.

An observation was made about the social distancing rules and how they affect smaller offices and restaurants. The question raised was whether the Government would consider implementing a one metre social distancing rule in London, rather than two metres.

Andrew Griffith MP suggested that there shouldn’t be different approaches taken in different areas.

In response Chris Hulatt suggested that in the future, employers will be more flexible and allow more of their employees to work from home. 

“The whole mentality around location is going to be totally different in the future”

A question was raised about what more can be done right now to support small businesses with rapid growth. 

Katherine Fletcher MP spoke about how she wants to see the Government assisting UK businesses by being more proactive and creating practical tips to help businesses set up their operations so that they can effectively export their products.

In response Chris Hulatt suggested that it is a good time to be running a business that is flexible and can respond to business needs. He spoke about the growing appetite to work in creative and early stage companies, where individuals feel that they make a difference. 

“There will be a deeper pool of talent to hire from” 

One person asked what more could be done by the Government to support scaling tech founders in the UK.

Andrew Griffith MP stressed the importance of mentoring. In his view, the Government can do its bit to support tech founders but in practice, most entrepreneurs who have grown and scaled their businesses have benefitted from having a mentor.

A final question was raised about funding to regional areas and what more the Government can do to support businesses in these areas.

Katherine Fletcher MP spoke about how she would like to see the Government take lessons from the coronavirus pandemic and administer funding from digital pots, which aren’t focused on business location. 

Economy, Technology and Bouncing Back - APPG Webinar

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network is hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19.

In our latest APPG for Entrepreneurship session on the Economy, Technology and Bouncing Back after Coronavirus, we heard from parliamentarians and tax experts on what our economy will look like post-coronavirus, how our business practices will change and the impact that the Government’s exit strategy will have on tax.

We heard from John Penrose, MP for Weston-super-Mare and former Lord Commissioner of HM Treasury, and Rt Hon Baroness Kramer, Liberal Democrat spokesperson for the HM Treasury. To give a perspective from the corporate world, we were joined by Gary Richards, Corporate Tax Partner at Mishcon de Reya, an expert who has advised the government on tax reform.

Here are some of the most thought-provoking insights from the session. You can view this on our YouTube channel. 

Highlights & Insights from our Speakers

John Penrose MP spoke about the ‘new normal’ and where our economy is heading post-coronavirus:

“What the lockdown has done is moved all of those trends which were already established and has shunted them forward at a much faster rate than anyone was expecting”. 

He spoke of the challenges Rishi Sunak, Chancellor of the Exchequer for the HM Treasury will face post-coronavirus, including balancing day-to-day spending while supporting the UK’s long term economic success:

“[Rishi’s] only answer has to be to change the shape of the tax system. That will probably mean he will have to simplify it, in order to get rid of quite a lot of the existing special loopholes, special programmes and special dispensations that have been given”.

The Rt Hon Baroness Kramer stressed that there is a silver lining to coronavirus which is the opportunity to lean into technology to push the UK faster into the fourth industrial revolution and tackle low productivity:

“There has been an extraordinary advance in the acceptance of new technology and also the use of technology, by a sweeping range of the population”.

She spoke about how it is important for the Government to invest in the opportunities that will underpin the UK’s future economy:

“This to me is the time to invest for recovery. I am concerned that we invest in the businesses of the future”.

She also spoke about her concern about the fiscal position for businesses, how she predicts there will be further redundancies as the Coronavirus Job Retention Scheme tapers off and her concerns about the accessibility of the Future Fund for Angel Investors and individuals:

“It’s important that we don’t lose many of the start-ups that are out there because they are our future”.

Gary Richards spoke about what the UK’s new tax system should look like and how it can be best developed to drive economic growth. He suggested that it should be designed to minimise distortions, be reliable and avoid unnecessary tax cuts and subsidies:

“Tax cuts only make sense if they stimulate the economy”.

He also spoke about potential abuses of taxation, such as the Gig Economy and suggested that the HMRC may need to be more flexible:

“We may need to be more radical. We may need to look at taxes on wealth or on capital”.

He suggested that entrepreneurs should see tax rises as a way to benefit their businesses in the long term as it will help to stimulate activity in the economy. 

Questions & Recommendations

During the Q&A session, we touched on a range of key issues. 

One person asked about how the Government should think about attracting the best and brightest individuals to the UK post-coronavirus.

In response John Penrose MP spoke about how immigration will be a key part of driving the UK economy forward. However he also tied this back to technological advancements and suggested that some work could be done remotely.

“If we get the immigration system right, the best tech experts… should be available to you. If we can work remotely, they may not even have to work [in the UK]”

Baroness Kramer suggested that there are a set of real problems with the UK’s current visa system. She suggested that the UK Government need to look at the current salary benchmark in order to compete with other countries.

“When you are running a tech company, you don’t just employ a few high skilled people, you have to be able to employ people all the way down the line to keep your company going”

One person asked about 5G and whether it should be the main infrastructure focus. 

In response John Penrose MP suggested that 5G will be essential and that it is important for the Government to set up a system which is neutral so it allows for the technology to play out commercially rather than rewarding companies that are able to best lobby their interests to the Government. 

One person asked whether further tax breaks for investment made sense and whether we should be looking for the Future Fund to allow investors to benefit from EIS and SEIS.

In response John Penrose MP suggested in order to reduce distortions, we may need to trade away some of the schemes that the Government has created to justify their continued existence.

A question was raised about why funding tends to be focused on innovative companies and not bailing out companies that aren’t going to be viable for the future. 

In response Baroness Kramer suggested that R&D tax credits should be a real focus going forward and we should use tax schemes to accelerate this.

It was asked whether there is any room for focusing on companies that the Government thinks will grow and lead to increased tax revenues in the future or is it too distortionary?

In response Gary Richards spoke about the challenges with Entrepreneurs Relief and how it was perceived by many people to be used by people who didn’t need an incentive. Gary suggested that the Relief should be focused on the  long term and subject to certain criteria in order to be effective. 

One person asked how the Government should best balance tax cuts.

John Penrose MP suggested that the squeeze on public sector spending will be difficult to continue and this will force the HM Treasury to consider increasing headline rates on tax and consider raising money by tax reform. 

Baroness Kramer spoke about the pre-coronavirus budget and the cost of political popularity and suggested that the Government will have to cut back on its commitments in order to deal with the crisis.

“This is a real lesson, be careful what you promise”

Gary Richards suggested that tax cuts should be directed to the lower paid. 

So where do we go from here? As our speakers have suggested, coronavirus has accelerated the UK faster into the fourth industrial revolution and changed the way we work. There is an opportunity to lean into technology and invest in the UK’s businesses of the future, like our start-ups. 

We have a few more APPG for Entrepreneurship webinars coming up in the next few weeks. If you are interested, you can sign up here. 

Disability and Entrepreneurship in the Time of Coronavirus – APPG Webinar

As the Secretariat for the APPG for Entrepreneurship, The Entrepreneurs Network are hosting a series of webinars to bring Parliamentarians and leading business owners together to explore what the future holds for start-ups and scale-ups post-COVID-19. In the first webinar of the series we focused on the public health challenges facing disabled entrepreneurs and how the Government will be able best support entrepreneurs with disabilities.

We were joined by some inspirational speakers in our APPG for Entrepreneurship session on Disability & Entrepreneurship in the Time of Coronavirus last week. We heard from Dr Lisa Cameron MP, Chair for the APPG for Disability and Shadow Spokesperson on Mental Health. She was joined by social entrepreneur Kush Kanodia, and Liz Johnson, gold-medal winning Paralympian and co-founder of The Ability People and (recently launched) Podium. 

Giving a parliamentarian's perspective, Dr Lisa Cameron MP  stressed the importance of creating a momentum around the key issues facing disabled entrepreneurs and looking to policy areas that could be developed, to maximise everyone’s skills. 

I've picked out a few of the most thought-provoking insights from the session. If you are interested in reading the full transcript, you can view it here. We will be uploading the webinar onto our YouTube channel.

Highlights & Insights from our Speakers

Liz Johnson spoke about accessibility and how we should address it as an underlying factor in everything we do to ensure that disabled persons are able to reach their full potential:

“Authentic inclusion and normalizing people's differences is what's going to make the world move forward and what's going to support people with disabilities to use their entrepreneurial skills and opportunities”

She drew on the education process in the sporting industry, with regards to disabled athletes and suggested that we can transfer this into every aspect of our society:

“We have to push and work with people to constantly make sure that accessibility is the underlying factor to everything and people are included in consultation at every level because you can't be expected to fix things for people. If you don't know what's wrong with them”

Kush Kanodia stressed the importance of re-focusing and changing our systems to combat the increasing inequality, which will result from the COVID-19 pandemic:

“Having accessible health-care and transport systems are only going to be ever more critical for disabled people in our post-COVID world”

He also spoke about how ‘fear’ of losing benefits is the single biggest barrier to disabled entrepreneurship:

“We need to focus and enable an environment where disabled entrepreneurs feel confident and not afraid to take the additional risks that are associated with starting a new business”

Dr Lisa Cameron MP drew attention to Liz and Kush’s insights and suggested that their ideas could be used to positively impact disabled entrepreneurs across the UK. She suggested that reducing barriers to accessing finance and mentoring are vital to address the challenges faced by many disabled entrepreneurs.

Questions & Recommendations

During the Q&A session, we touched on a range of key issues facing disabled entrepreneurs. Here is a quick summary of some of the issues we explored and the recommendations that came out of our Q&A.

One person suggested that APPG Disability meetings should be available on different platforms, to ensure that disabled persons are able to engage with parliament on the issues they face.

In response Dr Lisa Cameron MP spoke about how she is having meetings with the Speaker in order to make the meetings more technologically savvy going forward and to ensure that committee meetings are accessible to all. 

Philip Salter, Secretariat for the APPG for Entrepreneurship, asked Liz and Kush about how optimistic they were about there being a positive change to come out of coronavirus for disabled people.

In response, Liz Johnson suggested that while working from home has opened doors for some disabled entrepreneurs, it has also made it more difficult and challenging for other people. Talking about the transition back to the office after lockdown, Liz suggested that there should not be a blanket approach for all. 

“I think the key to the transition back out of this is how we frame it and how we educate everybody around the choices and the differences that are born out of necessity… there are people who actually, if they implement these strategies, their productivity will be so much more and the opportunities become endless”

Kush Kanodia suggested that COVID-19 has been a leveling experience for many, who might not have understood the fear that many disabled entrepreneurs feel leaving their homes. Kush also suggested that it has shown that virtual environments are just as important as physical ones. 

“One of the key transitions that I want to see in a post COVID world is that disability no longer sits within diversity and inclusion, within organisations, but is actually a part of sustainability, is actually a part of corporate strategy, values and ethics of all organisations”

One person asked about what could be done to get more disabled persons involved at the policymaking level.

Dr Lisa Cameron MP spoke about the Disability Internship Programme developed by the APPG for Entrepreneurship which seeks to involve disabled persons as key stakeholders in policy making. 

One of the audience members spoke about her struggle to access the finance she needed, as a disabled entrepreneur, and asked how the Government might support disabled entrepreneurs and ensure that they are heard?

Kush Kanodia spoke about how disabled entrepreneurship seems to be missing in the current Government support. He also recommended that the turnover requirements for disabled entrepreneurs in their first year of business should be scrapped, both during and in a post-COVID world, in order to reduce levels of unemployment:

“Entrepreneurship is going to be a much more conducive conduit to employment for a lot of disabled people”

One person whether there would be any additional initial funding schemes available to disabled entrepreneurs. Another person then asked about the economic recovery plan.

Liz Johnson stressed the importance of cross-communication between departments to ensure that disabled entrepreneurs have equal access to initial funding and are considered in the COVID-19 recovery plan:

“People want to be able to access what they are capable of and what they have potential for. So we need to create a world where you normalise differences”

Kush Kanodia brought the funding issue home with some interesting stats on the global purchasing power of disabled entrepreneurs and their potential to contribute to the UK economy.

“We have 15 to 20 percent of the population, equating to 14 million people being disabled globally. That's 1.3 billion people and that globally equates to a purchasing power of 8 trillion dollars”

Dr Lisa Cameron MP wrapped up the webinar with some updates on how she is raising the funding issue with the banks and also the letter she has written to the Prime Minister, regarding the importance of a disability inclusive economic recovery plan.

So where do we go from here? Dr Lisa Cameron MP has expressed her interest in looking into an inquiry report about entrepreneurship for people with disabilities. We see this webinar as only the beginning of a wider conversation about how we can help to support disabled entrepreneurs. As made clear in this session, entrepreneurship is going to be so important in our post-COVID-19 world. 

Some of our greatest entrepreneurs live or lived with disabilities. Richard Branson, founder of Virgin has spoken about how Dyslexia made him a better businessman. Ralph Braun had muscular dystrophy and built Braun Corporation, the world’s leading manufacturer of wheelchair accessible vehicles. The concept for IKEA came from its founder’s, Ingvar Kamprad’s dyslexia.

We have a few more APPG for Entrepreneurship webinars coming up in the next few weeks. If you are interested, you can sign up here. 

APPG for Entrepreneurship - May 2020 Digest

The COVID-19 pandemic and resulting lockdown has put businesses of all sizes under enormous strain. The government has responded to the economic turmoil with an unprecedented package of support for businesses across the UK. The support has ranged from loan guarantees of up to £5m rates relief for a range of sectors, to direct cash grants and the state picking up the wages of almost a quarter of the workforce. This is not to mention the Self Employment Income Support Scheme, which went live last week ahead of schedule.

However, many early-stage businesses, in particular those working in tech, felt as if the government had missed them out. Innovative startups are often loss-making early on, with uncertain revenues. As a result, they typically seek equity rather than debt financing. They also often opt for the flexibility of shared office spaces and thus would not qualify for the cash grants either. These concerns were crystallised in the Save Our Startups campaign, which was signed by over 6,000 startups and early-stage investors, and pushed for an equity-based alternative to the Coronavirus Business Interruption Loan Scheme. 

The government responded to these concerns by announcing the Future Fund, which offered to match fund convertible notes (loans that convert into equity at a discount) for startups that have raised £250k in equity finance, and a new scheme of grants worth up to £10,000 to companies in shared workspaces to be distributed by councils.

While both schemes have been welcomed by entrepreneurs, it is worth noting a few concerns entrepreneurs have raised with their implementation.

More than thirty founders from some of Britain’s fastest growing startups have complained that the Future Fund’s requirement that a startup’s parent company be UK-incorporated. This excludes startups who have been through prestigious US-based accelerators such Y-Combinator and Techstars, even if all of their workforce is based in the UK. 

Many startups and business angels were disappointed at the initial £250,000 minimum investment received requirement. However, some startups who thought they would qualify have uncovered a further hurdle. The Future Fund only allows Advanced Subscription Agreements, a method of equity finance similar to convertible loans commonly used by accelerators, to count towards the total invested if they have been converted to equity. This may exclude many high-growth startups that have been through prestigious UK-based accelerators.

There are also concerns that the cash grant scheme for startups in shared workspaces is insufficiently funded. Craig Cheney, deputy mayor of Bristol, told the Financial Times, the city had at least 1,700 businesses in shared workspaces but only £3.5m to allocate. “To give them all £10,000 we would need £17m.”

Speaking of cash grants

Enterprise Nation’s Emma Jones, one of the APPG’s advisers, would like to draw your attention to a new cash grant scheme they have set up working with Salesforce. Startups with at least two employees who haven’t received any other cash grant from the government can apply for a £5,000 grant. Businesses can apply here.

Upcoming Events

APPG for Entrepreneurship Webinars

We're organising a series of webinars to bring parliamentarians, entrepreneurs and the wider ecosystem together. You will have the opportunity before and during the webinar to raise questions. Feel free to forward these on to others who might be interested.

Members of Parliament or Peers who want to join the panel, or host their own webinar, should contact Philip Salter to arrange this.
 

Disability & Entrepreneurship in the Time of Coronavirus (in partnership with Disability Rights UK)
Featuring Dr Lisa Cameron MP, Liz Johnson (gold-medal winning Paralympic swimmer), and Kush Kanodia (social entrepreneur)
21 May 2020
1pm to 2pm
Register

This event will consider: the public health challenges for some disabled entrepreneurs; the support that government provides to entrepreneurs with disabilities and where more is needed; and potential post-coronavirus changes (e.g. changing working patterns, technologies etc.) and how they might support entrepreneurs with disabilities.
 

The Economy, Technology and Bouncing Back after Lockdown
Featuring John Penrose MP and Baroness Kramer
28 May 2020
1pm to 2pm
Register

This event will consider: the potential impact of Coronavirus on the economy and business practice; the fourth industrial revolution, and how tax system reforms will encourage economic growth.

Innovation, International Trade and Economic Recovery (in partnership with Octopus Group)
Featuring Andrew Griffith MP and Chris Hulatt (co-founder of Octopus
4 June 2020
11am to 12pm
Register

This event will consider: how UK startups can get back on track as the Coronavirus lockdown gradually eases; what the government is doing now and could do in the future to kickstart innovation; and how international trade will change after Coronavirus and how this will impact UK startups.

In Parliament

In a debate on the increase in the employment allowance, Lord Wei (Con) asked why the government was focussing on small businesses and employment rather than those who were self-employed and in freelance positions. He worried whether moves made to save jobs and keep people in employment were preventing people from generating future employment through entrepreneurship and self employment.

In a Commons debate on the same issue, Kim Johnson MP (Lab) welcomed the increase in the Employment Allowance, but expressed concerns that “some businesses are falling through the cracks, and the increase in the employment allowance will be of limited assistance to the many SMEs struggling to keep afloat during the covid-19 pandemic.”

In questions to the Treasury, Joy Morrissey MP (Con) praised the start-up loan programme. Chancellor Rishi Sunak restated her praise and added that coming out of coronavirus it will be the entrepreneurs of tomorrow who will help to create new jobs and drive prosperity.

In the second reading of the Finance Bill, Lilian Greenwood MP (Lab) drew attention to the problems faced by small businesses and start-ups in co-working spaces and other multi-occupancy buildings, saying “they pay their landlord a fee that includes rent and rates. The landlord does not qualify for small business rate relief, which means that neither the landlord nor the small business tenants can access the £10,000 small business grant.” She and her council have written to the Chancellor, urging him to address this anomaly.

In the coronavirus business interruption loan scheme debate in the Lords, Baroness Lane Fox (Crossbench) raised concerns about how the Future Fund was only made available to companies which had raised over £250k. She worried that this cut-off puts diverse funders and businesses based outside of the south-east at disadvantage and asked how the minister would ensure that the fund does not exacerbate existing inequalities.

Also in this debate, Baroness Blackwood (Con) asked  for clarity about the Future Fund. She wanted to know whether companies would have a reasonable veto over whom the loans could be sold on to. The minister responded by saying they were considering the issue closely while working out the details of the scheme.

In the Commons debate on the coronavirus job retention scheme, Mel Stride (Con) asked whether the government could take a second look at the qualification requirements for the Future Fund, asking for EIS and SEIS investments to be accommodated in some way. Sunak responded that EIS was notified state aid and therefore presents a challenge.

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Minutes of the 2020 Annual General Meeting

5th February 2020

Grimond Room, Portcullis House

Present: Seema Malhotra MP, Bim Afolami MP, Gagan Mohindra MP, Saqib Bhatti MP, Craig Williams MP, Rob Roberts MP, Dean Russell MP, Lord Leigh of Hurley, Lord Bilimoria, Baroness Neville-Jones, Lord Lucas, Philip Salter (The Entrepreneurs Network), Annabel Denham (The Entrepreneurs Network), Katrina Sale (Coordinator, APPG for Entrepreneurship), Dom Hallas (Coadec), Joel Gladwin (Coadec), Matt Smith (Centre for Entrepreneurs), Simon Mcvicker (IPSE), Dr Chris Hayley (Nesta).

Elections:

Seema Malhotra was unanimously re-elected as Chair and Registered Contact for the APPG.

Dr Lisa Cameron MP was re-elected as Vice-Chair.

Rachel Maclean MP was re-elected as Vice-Chair.

Lord Bilimoria was re-elected as Vice-Chair.

Lord Leigh of Hurley was elected as Vice-Chair.

Gillian Keegan was re-elected as an Officer.

Lord Cromwell was re-elected as an Officer.

Baroness Kramer was re-elected as an Officer.

Baroness Neville-Jones was re-elected as an Officer.

Bim Afolami MP was elected as an Officer.

The following Parliamentarians have joined the Group as Members:

Lord Lucas

Bob Blackman MP

Baroness Kingsmill

Baroness Wolf

Fiona Bruce MP

Catherine West MP

Rob Roberts MP

Jerome Mayhew MP

James Daly MP

Saqib Bhatti MP

Ian Liddell-Granger MP

Katherine Fletcher MP

Selaine Saxby MP

Dean Russell MP

Nick Fletcher MP

Gagan Mohindra MP

Craig Williams MP

Update from the Secretariat (The Entrepreneurs Network):

Philip Salter announced that there will be a change in approach in 2020 and beyond. The APPG will not only host events and conduct research in its own right, it will also become a conduit for other events. The APPG will be hosting an event for the launch of a new Tech Nation report, for example, and for an event with the EIS Association. 

This, Philip explained, is why the APPG now has an advisory board, to help encourage other organisations to hold parliamentary launches and get their research into the hands of politicians and policymakers. The Advisory Board members are:

Annabel Denham, Head of the Female Founders Forum

Dom Hallas, Executive Director, Coadec

Emma Jones MBE, Founder, Enterprise Nation

Simon Mcvicker, Director of Policy, IPSE

Matt Smith, Director, Centre for Entrepreneurs

Liz Stevenson, Communications and Stakeholder Affairs Director, Tech Nation

Philip also announced that the APPG will be doing events with the Enterprise Research Centre. He thanked Seema Malhotra MP for her Chairmanship to date.

Seema Malhotra MP thanked The Entrepreneurs Network for work done and praised the APPG as a “tremendous asset in Parliament”. 

Policy Areas

Lord Leigh of Hurley worries about the future of Entrepreneurs’ Relief. His concerns were echoed by Dom Hallas of Coadec. The APPG, it was suggested, should call for a consultation and review of the Relief. Philip Salter proposed a roundtable. Seema Malhotra agreed. Attendees were in unison that the APPG should engage with government on the issue.

Lord Lucas suggested antitrust as an area the APPG could explore.

Dr Chris Hayley announced Nesta is undertaking research around public procurement. This is a long-term project, but he will keep the APPG informed and assured attendees (especially Welsh MPs) that this would be a UK-wide (rather than just England) project. He also suggested addressing corporate venture capital, concerns that it kills competition, and questions around whether we should view it in a positive light.

Lord Bilimoria suggested three avenues of support or opportunity. First – the CBI, of which he is Vice President. Second – business schools. Third – EEUK, of which he is patron. Philip Salter explained that the APPG has engaged with EEUK in the past on research.

Dom Hallas made known that Coadec will be publishing a paper with the British Business Bank around access to finance – particularly for tech entrepreneurs – and how the UK can get more institutional capital into the venture market.

Dean Russell MP, former entrepreneur and startup partner with London & Partners, has had “coal face experience”. He thinks the APPG could offer guidance to startups in the initial phases – to prevent unnecessary business burn out. Sustainability is a challenge, he said, and support around pitching could help. 

Matt Smith announced work the Centre for Entrepreneurs is undertaking research around university incubators, diversity and inclusion, refugees and practical support for would-be entrepreneurs serving time. Philip Salter suggested larger events championing this work.

Seema Malhotra MP concluded that:

1. The APPG should consider Adjournment or Westminster Hall debates;

2. Internationalisation could be a policy area in 2020;

3. The APPG should address access to finance and home-grown venture capital.

AOB

The meeting concluded and Seema was congratulated on her re-election as Chair.

APPG for Entrepreneurship – May 2019 Digest

Uber strikes across four UK cities last week brought the gig economy and the rights of those who work within it front and centre.  

The heads of two Parliamentary Select Committees have urged Ministers to enact recommendations from the Taylor Review into employment. Almost two years after the launch of the Review, Rachel Reeves MP (Lab), chair of the BEIS Select Committee, accused the Government of "dawdling" and asked that it come forward with legislation to protect workers' rights and end abuse by "unscrupulous" employers. Frank Field (Independent), chair of the Work and Pensions Select Committee, added: "Until the Government gets a grip on the gig economy, employers' revenues will go on being subsidised by their sweated workforce and an exhausted public purse."

At a speech on the future of the Labour Market at the Recruitment and Employment Confederation, Amber Rudd MP (Con), Secretary of State for Work and Pensions, echoed these concerns, saying: "there are fears that for employees, the gig economy could objectify labour to a point where their working lives are subordinate to an unthinking algorithm".

A recent Oxford University survey found most Uber drivers had moved to the platform from a permanent role, attracted by the flexibility and control it offered. And as the Taylor Review pointed out, we now have more people wanting to work fewer hours than those who want to work more. One thing is for certain: with an estimated 4.8m people currently gigging in the UK, the gig economy is here to stay.

MPs have bridged the aisle on an amendment to the Immigration Bill that would see a relaxation of the current rules. Jo Johnson MP (Con) and Paul Blomfield MP (Lab) are calling for foreign students to be allowed to work in the UK for up to two years – a policy that was slashed to 4 months in 2012 when Theresa May was still Home Secretary. "If we are serious about Global Britain," former Universities Minister Johnson said, "we must recognise that international students bring huge benefits to our universities, our local economies and our soft power". 

In Silicon Valley, over half of all engineering and technology companies have at least one foreign-born founder, with the majority initially moving to the US to study, not work. But entrepreneurs need time to do the market research, develop key contacts, and spot an opportunity before taking the leap. The pair's bid has the backing of nine Commons Committee chairs, as well as Shadow Education Secretary Angela Rayner and former Conservative Ministers Justine Greening, David Davis, Andrew Mitchell and Priti Patel. 

Read the whole Digest – including entrepreneurship mentions in Parliament and relevant forthcoming events – here. Sign up here.

APPG for Entrepreneurship – February 2019 Digest

For centuries humans have looked to January as a source of renewal and, for entrepreneurs, 2019 began on an upbeat note: research from eBay found that over three-quarters of British entrepreneurs between 18 and 34 felt positive about their chance of growing their business in 2019; figures from the Booksellers Association showed that the number of independent bookstores on our high streets grew for the second year running in 2018; and a KPMG Enterprise study revealed that, over the course of 2018, 31.5 per cent (or $7.7bn) of VC investment in Europe went to UK startups.
 
This is only part of the picture, however. On Monday, a report from the British Business Bankshowed that female startup founders are missing out on billions of pounds of investment. Just 11 per cent of firms with at least one female founder received investment, and those with an all-female leadership team received just 1p in every pound. Ensuring female entrepreneurs get the finance to scale is fundamental – to both the economy and our society.
 
Also, a report from The Entrepreneurs Network and Association of Business Executives, launched in the Houses of Parliament with Parliamentary Under Secretary of State for Business, Energy and Industrial Strategy Kelly Tolhurst MP, found that while the rate of business startup creation is cause for celebration, downstream as many as 56 per cent of these new firms collapse within five years. “Too often viable companies fail due to bad management even when the fundamental idea behind the business is sound,” author Sam Dumitriu writes. He recommends practical reforms to ensure businesses are better managed, thereby creating more jobs, paying higher wages and selling better products.

Read the whole Digest – including entrepreneurship mentions in Parliament and relevant forthcoming events – here. Sign up here.

Minutes of the 2018 AGM

12 December 2018 – Room Q, Portcullis House

Present: Rt Hon Liam Byrne MP, Baroness Kramer, Seema Malhotra MP, Lisa Cameron MP, Lord Lucas, Philip Salter (The Entrepreneurs Network), Sam Dumitriu (The Entrepreneurs Network).

Elections:

Rt Hon Liam Byrne MP stood down as Chair and Seema Malhotra MP was unanimously elected as Chair and Registered Contact for the APPG. The group thanked Liam for his chairmanship.

Baroness Neville-Jones was elected as an Officer for the APPG.

The following officers were re-elected:

Dr Lisa Cameron MP, Vice-Chair
Rachel Maclean MP, Vice-Chair
Colin Clark MP, Officer
Gillian Keegan MP, Officer
Darren Jones MP, Officer
Wayne David MP, Officer
Rt Hon Liam Byrne MP, Officer
Lord Bilimoria, Officer
Baroness Kramer, Officer
Lord Cromwell, Officer

The following parliamentarians joined as members:

Sir Henry Bellingham MP
Lord Lucas
Baroness Wolf of Dulwich CBE
Lord Leigh of Hurley

Update from Secretariat:

Philip Salter noted that in 2018 the APPG for Entrepreneurship released 3 reports (on the topics of Enterprise Education, Women in Leadership and Tax Reform), held 2 launch events and hosted 6 roundtables with entrepreneurs and parliamentarians.

Research for 2019:

• Lisa Cameron MP expressed interest in researching entrepreneurship as an option for people living with disabilities. She notes that flexibility is valuable for disabled. Lisa chairs APPG for Disability and raised the prospect of collaboration.

• Seema Malhotra MP expressed interest in following up the APPG’s report on Enterprise Education at University level, with an addition report looking at provision in Primary and Secondary education. Lisa Cameron MP mentioned that the APPG should look at Enterprise Education’s place in the curriculum. Seema Malhotra MP mentioned importance of foundational business skills based on research with female entrepreneursc .

• Baroness Kramer expressed interest in research ahead of the Immigration White Paper. Seema Malhotra MP also expressed interest in the Start-Up Visa and raised the possibility of a joint letter or article ahead of the White Paper.

• Philip Salter set out three policies on immigration. Reforming the investor visa to channel more money into risk capital, the start-up visa to subsume the current entrepreneur visa, and a new post-study work option. Philip also highlighted issues with existing entrepreneur visa.

• Baroness Kramer raised the issue of exporting and entrepreneurship

• Lord Lucas raised the issue of procurement and whether SMEs are given a fair opportunity to compete for tenders. Baroness Kramer seconded that and raised concerns about the way tenders are overseen. Philip Salter mentioned South Korea’s online marketplace for public tenders as a potential model.

AOB

The meeting concluded and the group congratulated Seema on her election as Chair.

Notice of Annual Meeting

The Annual General Meeting of the All Party Parliamentary Group for Entrepreneurship will take place at 5.30pm on 12 December 2018 in Room Q, Portcullis House.

Entrepreneurs recognised in the Queen's Birthday Honours list

Twice a year, some of the UK’s great achievers are given recognition in the Honours List. Their accomplishments cover sport, social work and space – but we were particularly encouraged by the high number of entrepreneurs given recognition this year. They include Innocent Drinks co-founder Richard Reed, Unruly co-founder Sarah Wood, and Eben Upton, founder of Rasberry Pi. 30-year old Rajeeb Dey was among the youngest of this year’s honourees, and received an MBE for services to entrepreneurship in recognition for his work as founder of Enternships and co-founder of StartUp Britain.

Alan Mak MP, chair of the All-Party Parliamentary Group for Entrepreneurship, said:

Our APPG exists to help champion UK founders, and we are delighted to see some of the country’s best and brightest entrepreneurs have been awarded titles as part of the Queen’s 2016 Birthday Honours List. The individuals brave enough to strike out on their own are the driving force of the UK economy, inspiring innovation and creating employment – and deserve to be celebrated.

The entrepreneurs recognised with royal honours include:

Knighthood

• Sir Peter Wood, founder of Direct Line and eSure, for services to UK industry and philanthropy.

CBE

• Dr Eben Upton, founder of Raspberry Pi, for services to Business and Education.

• Richard Reed, co-founder of Innocent Drinks, for services to the food industry and to charity.

• Timothy Sawyer, chief executive officer of Start Up Loans, for services to small businesses and entrepreneurs.

OBE

• Scott Button and Sarah Wood, co-founders of Unruly, for services to innovation and technology.

• Deborah Wosskow, founder of Love Home Swap, for services to business.

• Johanna Basford, for services to art and entrepreneurship.

• Joel Blake, founder of Cultiv8 and co-founder of HOT500, for services to business support and enterprise.

• Alex Chesterman, founder of Zoopla Property, for services to digital entrepreneurship.

• John Clark, chair and chief executive of John Clark Motor Group, for services to business, motorsport and charity in Scotland.

• Julie Devonshire, director of entrepreneurship at King’s College London and director at Ventures at UnLtd, for services to Entrepreneurship.

• Gary Elden, chief executive officer, Sthree Plc, for services to diversity in business.

• Andrew Fisher, executive chairman of Shazam, for services to the Digital Economy.

• Stephen Gibson, founder and chairman of Bulkhaul and owner of Middlesbrough Football Club, for services to the economy, sport and community on Teesside.

• Saul Klein, general partner at LocalGlobal and co-Founder of Lovefilm, Seedcamp and Kano, for services to business.

• Caroline Plumb, founder and executive chair of FreshMinds, for services to business and charity.

• Duncan Rae, managing director of Golden Casket (Greenock) Ltd and chairman of Greenock Morton Football Club, for services to Business and the community in Renfrewshire.

• Timothy Steiner, founder and chief executive officer of Ocado, for services to the economy.

MBE

• Rajeeb Dey, founder of Enternships, for services to entrepreneurship.

• Alexandra Depledge and Thomas Nimmo, co-founders of Hassle.com, for services to the sharing economy.

• Bonamy Grimes and Barry Smith, co-founders of Skyscanner, for services to technology and travel.

• Ben Medlock and Jonathan Reynold, co-founders of Swiftkey, for services to technology.

• Wendy Tan-White, co-Founder of Moonfruit, for services to technology businesses.

• Sara Davies, founder of Crafter’s Companion, for services to the Economy.

• Simon Duffy and Rhodri Ferrier, co-founders of Bulldog, for services to the beauty industry.

• Alice Bentinck and Matt Clifford, co-founders of Entrepreneur First, for services to business.

• Mike Butcher, editor-at-large, TechCrunch, for services to technology and journalism.

• Carol Fitzsimons, chief executive of Young Enterprise Northern Ireland, for services to youth entrepreneurship and enterprise.

• Romy Gill, founder of Romy’s Kitchen, for services to the hospitality industry.

• Jayne Graham, founder and consultant at 2020 Consulting and founder of Colleagues on Tap, for services to small businesses in the North East of England.

• Jess Jeetly, founder and managing director of Jeetly, for services to entrepreneurship.

• Jennifer Johnson, chief executive officer of Kids Allowed, for services to apprenticeships.

• Ren Kapur, founder and chief executive officer of X-Forces Ltd, for services to entrepreneurship.

• Rachel Mallows, director of the Mallows Company and Made In Northamptonshire, for services to business and entrepreneurship.

• Mark Moran, inventor of The Hydrant Drinking System, for services to innovation and entrepreneurship.

• Anthony Pile, entrepreneur and founder of Blue Skies Holdings, for services to international business.

• Emma Sinclair, entrepreneur and co-founder of EnterpriseJungle, for services to entrepreneurship.

• Neil Thomas, founder of Atelier One, for services to architecture, design and engineering.

• James Watt and Martin Dickie, co-founders of BrewDog, for services to the brewing industry.

• Dawn Whiteley, chief executive of the National Enterprise Network, for services to business support and enterprise.

• Jean Wilson, founder of New Hope Charity, Worcestershire, for services to children.

• BEM

• Aaron Jones, founder of Fikay Fashion, for services to ethical fashion.

• Kirsty Loveday, founder and managing director of Love Drinks, for services to the drinks industry.

Minutes of the 2016 AGM

6 September 2016 – Room M, Portcullis House

Present: Alan Mak MP; Peter Kyle MP; The Earl of Erroll; The Lord Taylor of Warwick; The Lord Cromwell; Mr Philip Salter (The Entrepreneurs Network); Representative of Anne Marie Morris MP.

Chairman’s Report

• Alan Mak MP welcomed everyone to the meeting, thanked them for attending, and outlined the APPG’s activity since the launch in June 2016.
•  He noted that there has been lots of interest from Members of both Houses, the entrepreneurship community, and other organisations. The launch event was very well attended and so far the APPG has had an encouraging and successful start to its first year.
• Alan briefly outlined the forthcoming programme of events and noted that David Gauke MP and Seema Malhotra MP have agreed to speak, with more speakers to be confirmed soon now the Government reshuffle is complete.

Statement from Secretariat and Treasurer’s Report

• Philip Salter introduced himself as Director of The Entrepreneurs Network (TEN), which is the Secretariat of the APPG. Philip explained the APPG’s four policy streams in more detail (tax reform, exporting, female founders, and enterprise education) and outlined the plan for the year ahead
• The APPG will hold a series of ‘power lunches’ with entrepreneurs, in order to extract questions that will be put into a survey of TEN members and a subsequent call for evidence. The results from that process will be put into a policy report to be launched next summer, a year on from the APPG launch event.
• Philip invited those attending the AGM to put him in contact with any interested individuals or organisations that might wish to contribute to the work of the APPG.

Election of Officers

• Alan Mak MP proposed that all the existing Officers be re-elected. Lord Erroll seconded that proposal, and the AGM agreed this unanimously.  

AOB 

• One attendee made a point about the need to make sure ethnic minority entrepreneurs are not neglected in the work of the APPG; another raised the issue of ensuring the APPG was not entirely London-centric.
• Peter Kyle MP suggested looking at entrepreneurial options for fundraising, including events outside Parliament with a charge for attendance.
• Alan Mak MP concluded the meeting and thanked everyone for coming.