Feeds

Entrepreneurs destroyed by lack of IT credit

But are PCs on the never never the answer?

  • alert
  • submit to reddit

Top three mobile application threats

Britain is being robbed of its next generation of businesses as entrepreneurs report their planned ventures are being "delayed or destroyed" by the difficulties they face raising capital or credit to purchase essential IT kit, recent research claims.

Almost two-thirds of the 500 UK entrepreneurs questioned in the poll (some 61 per cent) blamed raising credit funding as the greatest threat to innovation.

More than a third (38 per cent) of respondents reported that funding difficulties are preventing them from obtaining essential business IT infrastructure, and so preventing them acquiring a vital "reputation driver" for their businesses. According to the poll, entrepreneurs said customers expected that they would have IT systems and an online presence at a minimum. They also claimed that a lack of IT equipment would severely curtail their ability to run their business and attract customers.

This compared with only 21 per cent who said that the biggest issues caused by lack of funding were failure to secure premises (21 per cent) and those who said support staff were the top priority(19 per cent).

So far, so good, or apparently not so good for Britain's budding entrepreneurs. However, we note that this survey was commissioned by none other than PC World, the computing arm of Dixons Group.

Simon Turner, group managing director, PC World said: "During the dot.com boom, it was possible to secure early-stage funding from many sources virtually on a whim. Nowadays, even getting base level financing for IT equipment is a tortuous process that may be robbing the British economy of exciting new enterprises."

So what, we hear you cry, can possibly be the answer to the funding crisis facing budding startups wanting to get IT kit on tick? You've guessed it - credit from those nice altruistic people at PC World, who have signed an agreement with Australian business finance outfit RentSmart and the Bank of Scotland.

Under the deal, start-ups will be able to get "immediate access to up to £3,000 worth of leased IT equipment".

However, the small print is not altogether clear about who will be eligible for this line of credit - specific individuals or the actual company - as PC World states that funding will be made available after a credit check on one company director. Details of rates and specific financial terms were not included in PC World's announcement.

The PC superstore says the leasing deal will be available "without the onerous requirement to demonstrate a trading history or business plan". While it's true that trading histories can be hard to come by for start-ups, we can't help wondering if a business plan is an onerous requirement - or a jolly good idea. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.