Prospects for recovery in business failures in the US and the UK.

The business community finds it difficult to forgive a failure. Those whose ventures go under often find it impossible to start up again in the UK. This contrasts with the US, where failure is often seen as a valuable learning experience and certainly no barrier to starting again. Now the government wants to see hostility in the UK replaced by the more relaxed US attitude. In a recent speech in New York, trade secretary Peter Mandelson said: 'This has to change as we build a new, enterprising, dynamic economy in Britain.' He wants banks and other funding institutions to be more sympathetic to people who have failed but would a policy shift create a more entrepreneurial economy, or could it turn into a rogues' charter for the people behind dishonest businesses?

John Webster runs the Nottingham-based Chief Executive's Office, which helps business people find new funding for business ventures. He feels that a more compassionate approach could help thousands who feel overwhelmed by shame and even driven to contemplate suicide when their firms go under and they are barred from making a fresh start. 'If you have a blip on your record, the attitude of banks is often to ask why they should take the risk,' says Webster. Professor David Storey, head of the Small- and Medium- Enterprise Centre at Warwick University Business School, says there is no evidence to support the view that second time ventures are riskier than first time businesses. 'Studies have shown that the success or failure of any previous business has no influence over how a new one will perform,' he says, 'Americans believe that being an entrepreneur is something that you learn and that failure is part of that process. We somehow believe that we can train entrepreneurs and that failure is not a part of that training.'

Simply being associated with a business failure can be a problem. Lou Denne, 27, and Perry Joseph, 36, worked in a music-video production company that went bust two years ago. Six months later, they launched Bug UK, another music-video production company, in West London. 'We were not owners of the previous company, but initially it was difficult to persuade suppliers and even delivery companies to work with us,' says Denne, the company secretary. Now, however, Bug has broken through that barrier and built up a £2 million turnover, its clients include big name groups Oasis and Manic Street Preachers. Denne adds: 'I believe we are stronger now because we learned from some of the management mistakes of the previous company.'

Leaders of the small business community don't want Mandelson to make it easier for bankrupts to walk away from their debts. They argue that this would undermine many small business suppliers but Nick Goulding, head of policy at the Forum of Private Business would like to see clear explanations from banks when they reject previous business failures who want funding. 'People need to know why they have failed to meet a bank's criteria so that they can do something about it,' he says. However, banks argue that they do not have a negative attitude to those who have previously failed in business. 'Not at all,' says David Singleton, managing director of Lloyd's TSB business banking. 'Someone who has been in business before and who has learned from the experience of failing might be less of a risk. However, it is important that such people understand why they failed.'

2. European consumers are exposed to…

European consumers are exposed to hundreds of commercial messages a day, but the vast majority of these are ignored, so ads which shock have become more popular with advertisers.

It is believed that these ads force consumers to listen to their message. But some admen argue that it’s a little more complicated than that and brands can no longer expect consumers to take sales messages at face value.

Consumers challenge everything they are told and will prefer brands that give them something back, rather than the old-style “here’s our product ain’t it great!” philosophy which has dominated advertising since its inception. Thus ads can deal with social issues and refer to the news agenda these days.

Билет № 7.

Date: 2015-12-24; view: 497