8 ways the incoming government can support start-ups
Labour's failure to rule out capital gains tax hikes have made some nervous about the potential impact on start-ups and scale ups. In the latest of the Henley our Ballot Box series, Dr Keith Arundale explores how the incoming government can support growth in the UK entrepreneurship scene.
It’s no secret – UK investors have less appetite for risk than their US counterparts. Compared to the US, it's hard for UK businesses to secure funding – and it’s holding the country back from scaling up our own large and successful companies.
Many factors are at play stifling this growth and not all are within the Government’s control. For example, the UK Venture Capital scene is much more risk averse than its US counterpart - UK investors are far too timid with a lower propensity for risk. In contrast, US VCs’ risk approach is epitomised in their ‘1 in 10’ investment strategy. If one company swims, that success will cover the loss of the nine that sink. This approach has led to huge success, particularly in the tech sector - eBay, Facebook, Google, Amazon and Apple all emerged from this risk-tolerant investment culture.
There are moves the venture capital sector can make to shift this culture, but are there ways the Government can get involved in supporting start-ups further to boost UK growth?