Emma Jones interview: Enterprise and entrepreneurs will power us out of this economic crisis

The last six weeks have been extremely rocky for businesses, SMEs and start-ups in particular. Viable business models were upended virtually overnight when lockdown measures were introduced. Our ways of working have radically shifted, and the fundamentals have been torn out of entire sectors – from hospitality to personal services. We still have have little idea of when – or even if – life might return to normal.

Thousands of businesses have already collapsed since the lockdown began, from big names such as fashion retailers Oasis and Warehouse, to “one-man bands” offering services incompatible with social distancing – whether that’s cleaning, tour-guiding, or dentistry.

The Treasury and the Bank of England have been working overtime to support. business, but there have been some major gaps in their efforts. The package for the self-employed, for example, won’t come into force until June (over three months since freelance work began to dry up in certain sectors), and it offers little to owners of personal service companies.

And it wasn’t until this week that the Chancellor changed course, following mounting pressure. He offered 100 per cent government-backed credit (branded “Bounce Back Loans”) to Britain’s smallest businesses, which had been struggling to access finance from the banks at this critical time.

Depressed? There is hope. Emma Jones MBE is the founder of Enterprise Nation, a small business support provider and community that connects and nurtures Britain’s entrepreneurs. She has spent her career launching, growing, and supporting start-ups. She is co-chair of the Prime Minister’s Small Business, Scale-up and Entrepreneurs Business Council. If anyone has their finger on the pulse of Britain’s enterprise community, it’s Emma.

So what can she tell us about the reality for the UK’s 5.9 million SMEs during these challenging times, and and the way forward for Britain’s entrepreneurs?

Let’s start with the government – is support getting to those who need it?

Emma Jones: The picture is mixed. Our own research has found that the local authority grants have not yet found their way to all of those eligible in local areas. And there are still issues around firms that are based in co-working spaces, for example, that are excluded from this type of grant support. We’re in dialogue with the Small Business Minister about this.

Moreover, the self-employed are not due to hear about their acceptance for support until mid-May, and won’t receive anything until June unless they are eligible for Universal Credit. The recently announced Bounce Back Loans will offer some reassurance, although we know small firms are unlikely to want to take on more debt in times of uncertainty.

We ran a survey of our members which reported that 83 per cent were still working on a financial package to take them through the crisis. We’ve set up a support page on our website that is constantly updated, and we’ve seen a 200 per cent increase in traffic. At first, many of the queries were around eligibility to access government financial support. That initial demand for financial information has now been replaced with people looking to find ways to trade. So a certain amount of confusion remains but entrepreneurs are determined to find a way through.

How are entrepreneurs adapting to these unprecedented circumstances?

At the start, the main concern was finance, but attention is now shifting to how to make money, if that’s possible under the current rules, and how to position for the future.

A recent survey we did of our members found that 63 per cent are now intending to boost their digital presence, as well as looking at ways they can diversify in the future to mitigate risk.

We’ve seen some great examples of adapting. Didsbury Gin, for instance, switched their equipment to produce hand sanitiser. David Marr pivoted from an essential oils business to delivering grocery boxes in London – he’s turned over £90k in his first month of launching Clapham Fresh. Then there’s beauty and wellness retailer Seekology, which has moved from a shop in Richmond to being 100 per cent online, and supporting new British brands into the bargain. There are so many great examples of innovation and ingenuity out there.

What potential do you see for entrepreneurs during this crisis, and if the world is going to change as much as we think it will, where are the business opportunities?

Around half of all small firms are still not online, and this crisis could be a catalyst for changing that. We’re already seeing so many people moving quickly to take their business online – whether that’s offering services remotely, engaging more with social media, or looking for new online marketplaces such as Etsy and Amazon and building a customer base there.

We’re obviously seeing a lot of small hospitality retailers, such as bars and street food outlets, start to do deliveries for the first time. This may well continue.

And now that they’ve got a taste for it, many employers are getting comfortable allowing staff to be home-based more often. We expect we’ll see continued innovation in online meeting services and cloud-based organisational platforms. The British are already some of the world’s keenest early adopters of online shopping, so expect to see yet more innovation there too.

How can government policy help lay the groundwork for our entrepreneurial scene to bounce back as quickly as possible?

We know small business founders are using this time to think about the skills they need to take them into the future. Our recent survey showed that 53 per cent are confident they will get to point when they can focus on skills such as marketing and social media, which will continue to be crucial. In fact,19 per cent are ahead of the game and working on this right now.

After the initial crisis response, the government should turn to bringing in help to support firms to increase those skills and prepare for what’s next. We’re already working with BEIS to increase the availability of expert advice in all areas, including finding new markets, selling on new online platforms, and exporting, as well as increasing digital skills.

Finally, what advice do you have for those struggling with their start-ups or considering launching their own business now?

The crisis may turn out to be a leveller. For some, it will be an opportunity to grasp with both hands. For others it will be discouraging, potentially putting an end to that particular avenue.

But history tells us that economic crises create more entrepreneurs, not fewer. They can be the mother of invention. So there is hope, for all entrepreneurs both existing and potential.

Depending on what your idea is, it might be worth delaying for a while as even the businesses least affected are bracing themselves for what’s to come. But that doesn’t mean it won’t work in the long run. We’d recommend taking some advice and really honing those skills in the meantime. Remember, Britain has always been a nation of entrepreneurs.