Having stepped over the pond from Canada some years ago, I have been struck by the way the Brits do business compared with companies in North America. While many of the larger corporates are rather similar in the way they are organised and run, there are subtle differences when it comes to the smaller organisations which, I fear, will have a major impact in leaving UK business behind in the fast-changing global market.
Like North America, UK industry relies heavily on small and medium-sized companies in terms of contribution to overall economic performance and a source of employment. Most of these businesses are dynamic and evolving because they were set up by entrepreneurs. Having spent most of my professional life as a marketer, developing and launching products that target this influential business community, it is becoming more apparent that this phenomenon only goes so far in the UK.
The question I keep asking myself is why those people who had the courage and ability to set up and run their own businesses in the UK are so reliant on central and local government support in taking the next step to grow their business.
North America has created an opportunistic business environment. When companies are born, their business plan reflects the spirit and determination of their founders - to be number one. Undoubtedly, the ambition of reaching your full potential is inherent in UK business, but the perceived path to success is vastly different from North American thought and much more reliant on government bodies, rather than business instinct. This puzzles me as the UK has and continues to produce some of the world's best strategic minds in business.
We recently conducted a joint survey with the Institute of Directors (IoD), asking its UK members about their IT requirements and what was holding them back from implementing the technology that would take their businesses forward. Most of the firms recognised the commercial benefits of broadband. The millions of pounds that have been spent educating UK business is working as more than three-quarters of the firms cited reduced overall costs as a key reason for adopting it. This has been a focal message rather than faster communications.
While the overwhelming majority of surveyed firms planned to adopt broadband in future, if they didn't have it, most were still resisting at present.
What was holding them back was not just the perceived costs but also a lack of central and regional government subsidies to alleviate them. Of the firms, 48 per cent were demanding central government subsidies and a further 28 per cent were calling for local government 'try before you buy' schemes. This is what separates North America from the UK. Unlike Britain, it has a complete belief in the benefits of a technology solution, but a willingness to take a risk without subsidised support.
Why aren't UK entrepreneurs, who took the gamble to start their own business, taking this chance to move their companies to the next level? Granted, some may be happy with their margin of profitability, but broadband can offer flexible working solutions and a wider marketing opportunity on top of overall cost savings.
This reliance or belief that the government should be responsible for subsidising business is one that I find strange. Too much inward reflection and reliance on state support could harm the UK's ability to compete on the global platform.
I find that North American entrepreneurs think differently from their UK colleagues. If this survey was in the US, the response would be very different. Barriers to broadband adoption would have included responses such as lack of local access or perceived high cost, but lack of subsidies would barely have registered. The historical reliance of people on the state could be the UK's undoing in business.
UK business cannot afford to be held back by such antiquated and redundant thinking. We live in a world geared towards individual responsibility, with the government putting more onus on individuals to look after themselves.
The sooner people understand this in the workplace the sooner UK business will be able to compete more effectively on an international level.
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