Television entrepreneur Doug Richard said now is a great time to start a new business even though the economy is in the doldrums.
But the American technology specialist said hopefuls should expect to get little help from the government, which he claimed wasted billions of pounds on ineffective support schemes.
Richard told The Herald that people who were prepared to change their view of risk could find that the economic slowdown has created fertile ground in which to start new ventures.
“Starting a business is viewed as a risky activity but risk is relative. Most people see risk in the context of the security of their jobs but working for a big corporation or a bank is not as safe as it used to be,” said Richard, who starrred on Dragons’ Den on BBC.
“The likelihood of getting fired has increased and the conditions outside our own lives have changed. Corporations and governments have retreated, they have cut research and development, they have left more gaps in the market... There are more resources available, more good people in jobs they would rather not be doing or in no jobs at all.”
The record showed that companies that started in a downturn were more likely to succeed.
However, Richard said: “It is striking how extraordinarily ineffective most of it is.”
He said most of the £2.5 billion spent annually by central government seemed to be used for advice schemes that were of little practical value.
He added: “What they (small businesses) need is much more straight forward training in business skills and for the government to be an effective customer.
“Small businesses would much rather have a customer than an adviser.”
We tend to agree with most of what he has to say!