Easy way to boost employment – get the big guys to pay sooner

A couple years back, Bloomberg researched new business failure rates. It discovered 80% of startups fail within 18 months. Biznews is two and a bit years old so is beating the odds. Thank you for that.

Businesses that crash and burn tend to swallow savings that might have taken the entrepreneurs years to accumulate. And the fortunate few that do survive deliver no more than a reasonable living to their founders. Little wonder most smart people opt for corporate careers or sheltered employment in the public sector.

No hard feelings to them. But having a look through our debtors yesterday, what stuck me was how every one in the 120-day plus column are big organisations. Of course they do pay – eventually. But in the meantime, we’ve had to settle VAT and fund working capital, effectively acting as bankers to companies many times our size.

Fortunately we’re properly capitalised and we’ve also got some great corporate clients who actually pay in advance.. Not all small businesses are as fortunate. So here’s an appeal to corporates and the Government on behalf of all independent businesses: Please pay your bills in the same time you demand from us. It will make a minimal difference to your financial situation. But will definitely help reduce our 80% failure rate – and is a great way to attack the unemployment rate.

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