A ‘LACK of support’ means almost a fifth of new businesses in Rugby do not survive to see their second birthday, according to a national debt charity.
New figures published by the Office of National Statistics revealed that 19 per cent of new businesses set up in Rugby do not last until their second year, with three per cent winding up in their first year.
605 new businesses were set up in Rugby last year – a similar figure to the previous year. But at the same time, a total of 405 businesses closed down in 2014.
Business Debtline, run by the Money Advice Trust, warned there is a ‘lack of support’ available to help new ventures take their first steps in business.
The charity said this gap in support means many small business owners are not given the skills and know-how they need to get their company off the ground.
Joanna Elson OBE, chief executive of the Money Advice Trust, said the new businesses set up in the area last year were hugely welcome.
She said: “Small businesses are powering the current economic recovery, and we all need them to have every possible chance of succeeding. Unfortunately there is a real ‘support gap’ in the UK for people setting up a business – many of whom have a terrific business idea, but don’t necessarily have the skills, information and coaching they need to make a go of it.
“Not every business can succeed, but some are going under due to missteps that could be avoided with the right support early on.”
Paul Rogers, Rugby Chairman of the Federation of Small Businesses, argued there was support on offer to new businesses, but it was not widely known.
He said: “These figures show both success and concern. It is fantastic that these new ventures are starting. Innovation and new ideas is what we need to grow the economy regionally, nationally and internationally and it has to start somewhere.
“I know that that many businesses are not aware of the start-up help that is available either freely or from membership organisations such as the FSB.
“For example, the FSB membership benefits help businesses be sustainable with legal and tax advice and support, key documentation to run their business, as well as the discounts on essential business costs including banking, insurance and fuel.
“The big issue is getting the message across. New business people have an idea but may have never run a business before. The amount of regulation businesses are burdened with can be overwhelming, new businesses try and cope but they don’t know who can help.
“So it comes back to communication – our challenge is getting that message across that there is help out there.”
