Comments on: Andrew Dilnot thinks small businesses are bad businesses

By: Tax Research LLP

Tax Research LLP — Sat, 08 Sep 2007 16:10:13 +0000

NOTE:

Further postings from James Willis on this site have been blocked as the email address used by him is artificial.

This is considered an abuse of the use of this site.

By: Tax Research LLP

Tax Research LLP — Sat, 08 Sep 2007 10:05:54 +0000

James

People see accountants to ensure they comply with tax and company law. Few small business accountants can or do offer useful advice on entrepreneurial activity. That’s because they’re not entrepreneurial. That’s not to cndemn them, but let’s be clear, the person who is happy completing tax returns is rarely going to be a go-ahead business person. They’re different mind sets. So that’s point 1 dismissed.

As for your second point, let’s be straightforward about what you’re saying. By your defitnion small enterprises that want to grow are called small businesses, those that don’t are called the self employed; ergo small businesses always want to grow.

Unfortunately that’s not true: they’re all small businesses and you and Dilnot are wrong.

Richard

By: james willis

james willis — Fri, 07 Sep 2007 22:02:20 +0000

Then why do they come to an accountant, Richard? To maximise their losses? I don’t for a moment believe that the majority don’t want to grow. But it is evident that few succeed. I think you may be confusing self-employed with small business, as Jason does. I’ve had a look around at this issue and it seems like this tax break had the effect of persuading a lot of self employed to become small businesses, with no change in their performance, just a change of name, so the tax break clearly had the effect of people just relabelling what they do, and there’s clearly a distinction in Dilnot’s mind between self-employed (like a researcher or freelance lecturer) and small businesses. Seems to me he can only have had the latter in mind, or I’d agree with you. But that would make no sense at all. So let’s keep the two separate. I can imagine the self-employed wanting to stay that way, free to take contracts where they like, etc, but I just don’t buy that ‘the majority’ of those who have the drive to set up a fully fledged business don’t care about having more business. If we’re talking observations, no-one, I mean no-one I know in the various business groups I’m part of is content to sit there.

By: Tax Research LLP

Tax Research LLP — Thu, 06 Sep 2007 10:19:12 +0000

James

You’re simply wrong.

97% of businesses are small.

Some are badly run but wanted to grow. I agree with you on that. They whinge about beauracracy as an excuse for not doing so. But they’re a minority.

The majority have no desire to grow at all.

I base this observation on having been an accountant in practice for 25 years servinf, primarily the SME sector.

Richard

By: James Willis

James Willis — Wed, 05 Sep 2007 14:38:54 +0000

Dilnot sounds about right to me. It’s true that some small businesses choose to be small, and that some are good but niche, but when you set tax policy you aim at the generality. Just because I can name a few good but small (and I can, I even like to think I run one) does not mean the majority are the same. And the fact is that the vast majority are in it to grow, but haven’t. Why not? Well if mine doesn’t, it’ll be because I wasn’t good enough. Thinking that because good businesses often start small that therefore all small businesses are good, is not clever. Nor is the abuse instead of argument.

By: Tax Research LLP

Tax Research LLP — Mon, 02 Jul 2007 08:56:14 +0000

I just seethed and my applause was notably absent after he finsihed. I was not alone, is all I can say in defence of some of those present.

Richard

By: Emily Coltman

Emily Coltman — Mon, 02 Jul 2007 08:39:18 +0000

Good job I wasn’t there, or I’d have been sorely tempted to punch him on the nose

Jason’s right - “life style” and small businesses do exist and they aren’t small because they’re not good at what they do. Many small business owners have chosen to keep their businesses small.

I read a book recently by a gentleman who was a vet in Devon. His practice was initially just him. Then he took on first one assistant, then 2 more.

He ended up doing all the administration of the practice and none of the actual treating of the animals which was what he had wanted his career to be.

So he sold his practice and set up again on his own.

He chose to be small so he could concentrate on being a vet instead of running a business.

Sensible guy.

By: Jason Holden

Jason Holden — Fri, 29 Jun 2007 10:26:50 +0000

Thank god these people stay in the confines of a research institute/university.

Those who can will always try and run a business in the UK, and yes many will fail, and yes many will get up and try again, and then there are ‘life style’ businesses and small business that likes being just that, and then we have those who, well those who teach, or carry out research!