The Perils of Increasing Government Spending
The temptation to increase government spending may be hard to resist. However, stimulus spending, government bailouts and fund injections have proven to cause more problems than solutions. Obama’s attempts to revitalize the American economy a few years ago with his stimulus package have illustrated that increased government spending is not a cure-all that can solve declining GDPs and floundering economies. If there is a lesson that can be learned from the way America handled the recession, it is clearly the fact that governments cannot simply buy their way out of a messy economic maelstrom. Government spending alone cannot create jobs or increase the income of a nation. In the long run, increasing the productivity of the general populace is a more effective and long-term solution to build a stable and sustainable economy that can weather most economic downturns.
In order for an economy to be stable and profitable, it should be able to earn. Economics is a very complicated subject but the bottom line is that a productive populace builds strong economies. In order for a population to be productive, individuals should have access to lucrative jobs. Large-scale companies are very important providers of both income and jobs. Economies of scale and multi-national corporations are very important, however, the government should also pay more attention to small to medium scale entrepreneurs. While generally smaller in scale in terms of operations and scope, entrepreneurial companies are very important sources of jobs as well as income. They are also often at the forefront of development and more often than not, the "next big thing" may be found in an office of a small entrepreneurial company. Even corporate giants such as Google, Apple and Virgin started as entrepreneurial endeavours spearheaded by visionaries like Steve Jobs and UK’s own Richard Branson.
Riding the Entrepreneurial Dynamo
Given the power and dynamism of entrepreneurs, the UK government should also lend its hand in ensuring that a new crop of highly motivated and driven entrepreneurs can come to the forefront. Keep in mind that a government is meant to “govern” a nation, not provide jobs for all its citizens. This task is best left in the hands of entrepreneurs. The government should focus on laying the foundations for the next generation of intrepid UK entrepreneurs. While there are many ways of doing this, education should be the topmost priority. The government should be able to educate entrepreneurs and equip them with everything they need to start being profitable. While this may seem like a time-consuming and roundabout method of stabilizing an economy, it can help bring more permanent long-term results.
Large-scale companies are very good at what they do. They can provide thousands of jobs and earn billions of Pounds at a scale that the average entrepreneur could hardly hope to match. However, even multi-national corporations have limitations when it comes to the speed at which it can achieve progress. True progress can be seen more clearly at the entrepreneurial level. Take the business mogul Duncan Bannatyne or the cool restaurateur Jamie Oliver for instance. These business savvy entrepreneurs have taken their respective fields by storm. From his humble roots maintaining the ships of the Royal Navy as an Engineering Mechanic, Bannatyne now runs a vast organization with stakes in real estate, television, hotels, health clubs and even transportation. Olivier, on the other hand, has come a long way from growing up at a small English pub in Essex. He is now a successful celebrity chef and TV personality. At the same time, he is also one of the most successful restaurateurs in the country. Sweet as Candy, Olivier’s cleverly named Holding Company has raked in enough profit to garner him the title as “One of the Richest Britons Under Thirty” according to The Sunday Times.
Education as the Key to Success
The UK has no shortage of brilliant and highly capable entrepreneurs that are worthy of emulation. Their examples should be used both to motivate and educate up and coming entrepreneurs who are simply raring for a chance to rise to the world’s stage. In order for these individuals to have a fighting chance, they should be educated for self employment. They should have access to entrepreneurial basics such as knowledge in accountancy and bookkeeping, small to medium scale production and import and export knowhow. While UK colleges and Universities are there to carry the brunt of the burden in terms of educating these future tycoons and moguls, the government should also step forward by providing more educational options and programs.
Other European countries already have a head start in terms of entrepreneurial education and support. Italy for instance, has been busy raising and supporting the next generation of Italian entrepreneurs. The Italian government regularly sponsors educational seminars designed with the budding entrepreneur in mind. They have also started spearheading other avenues of entrepreneurial education both in the real world as well as online. The UK would greatly benefit from applying these measures locally as well.
Online Support for Burgeoning Entrepreneurs
While many UK entrepreneurs are waiting for the government to take the necessary steps in the right direction, there are many online resources that new entrepreneurs can take advantage of. From online educational courses to resource sites specializing in providing information related to entrepreneurship and business in general, you will be able to find a wealth of information online. Sites like Servizio Contabile Italiano and its blog about business can help individuals make heads or tails of the sometimes complex world of entrepreneurship. They offer industry leading accounting services as well as resources and articles that any entrepreneur would find useful.