In my book 'Drive Like a Real Entrepreneur' I note that entrepreneurs require stable governments and economies to be able to thrive and to develop their businesses to the full. So the leading questions this week are;
What will the result of the UK election - set for May 2015 deliver for the entrepreneur doing business in the UK?
Ordinarily the UK business person has always considered that a ‘right leaning’ administration in government favours business. Principally because the philosophy is such that they intend to deliver low taxation and encourage business with less bureaucracy. Left leaning governments look to create much more state intervention, which requires funding – resulting in higher taxation.
The political panacea since 2010 has changed this approach and thinking. Why?
Much has been said about the poor state of the economy that the last Labour government left when in office and yet many members of the electorate wish to give them another chance. Why? When it was such a mess?
Many have been appalled at the measures of austerity and cuts that have been made to public services and therefore wish to vote out the Conservative led coalition. Why? When all they have been trying to do is balance the books.
The reasons that we are back to where we were 5 years ago with a fight between two parties unable to make clear water between them is because the electorate only look short term and what is in it for themselves. The electorate only feel what is important is their household budget and cannot look further than a year or two. They don’t care about balancing the books tomorrow and merely care about the services on offer today.
Alongside this, many smaller parties have established themselves taking core voters to one side. The first past the post system will create a biased result. The centre ground is where the Labour ‘revolution’ won their victories in 1997 and 2001. They convinced business that they were the party to support. So the mainstream parties are fighting for the centre ground, like a general in the battlefield being out manoeuvred on his flanks.
So for the entrepreneur this election appears to be very different as the parties are converging in respect of their support to business. The entrepreneurs vote is important. The entrepreneur provides jobs.
However, this election is heading to be fought on a very clear and obvious wicket. Who can deliver good public services? This is primarily surrounding the welfare state – being the health service and benefits on offer.
So the entrepreneur can expect funds being spent on the health service whoever wins. Also, a continuing benign corporate tax system.
Beware tax for big business and banks if there is a Labour led Government and also caps on costs on supplies made to the public sector which may make that type of work for those supplies or services far less profitable.
With a Conservative led Government there would be more of the same that we have had over the last 5 years and perhaps an acceleration of the ‘joined up’ government which we are seeing on the benefits and taxation system with universal credits, self-assessment and the collection of unpaid tax.
Whoever wins, there will be no hiding place. The world is digital and already they all know more about us -- than we know about ourselves!
Next week I shall be discussing why entrepreneurs set and like to achieve goals.