Business owners admit that fear of failure may be inhibiting the growth of their business, according to new research from Barclays Bank.

Despite 48% of respondents acknowledging that fear of failure could hamper company growth, 57% admitted to putting off making an important decision for a day or more for fear of making the wrong call.

The study, which looked at the habits of over 1,000 business owners uncovered that damaging profits or loss was the most feared potential consequence of making the wrong decision, with 46% of participants citing it as their biggest fear.

The research revealed that turning down a customer or client was deemed the most frightening among decision makers, closely followed by taking on external finance in order to grow.

Barclays Bank is aiming to inspire confidence among business owners with their free UK seminars, taking place across 10 UK locations on November 20 and 22.

Run in partnership with Startups, the seminars are set to provide comprehensive cashflow management and sales tips from Innocent Drinks co-founder Adam Balon and successful local entrepreneurs.

Sue Hayes, managing director of Barclays Business Banking commented: “At the time of making important business decisions it’s only natural to be scared of getting it wrong. 

“It can feel like you are taking a big risk – whether that is decisions about staff, products, finance or even your marketing strategy.

“Despite the tough external environment, there are many opportunities to be seized upon and the ability to make important decisions is vital to the growth of all businesses and the overall UK economy.”

Start-Up Loans Company’s £10m pilot scheme is underway, with applications from 2,000 young business minds already received.

Launched at MADE festival, the pilot scheme pre-empts the £82.5m government-backed initiative, which promises loans over the next three years to support people aged 18-24 to start a business.

Celebrating the first recipients of the funding at Church House, Westminster on October 3, former BBC Dragon and Chairman James Caan announced a further £50m worth of support from corporates including eBay, PayPal and Metro Bank.

In support of the scheme, which offers individual loans of up to £2,500, national enterprise campaign, StartUp Britain is launching a month-long bus tour, designed to inspire young people to sign up.

Carrying a team of business experts, mentors, authors and entrepreneurs, the bus will travel to 40 colleges and universities across the UK, offering students the chance to apply to the scheme from the vehicle.

Caan urges all young entrepreneurs to sign up to the start-up boosting initiative: “Start-Up Loans Company aims to stimulate entrepreneurship across England and highlight starting a business as a viable career option for young people.

“I know from personal experience both how exciting and challenging it is to start a business but with the mentoring advice we provide and the corporate support we have from Regus and PayPal we can make a huge difference to these new businesses. “I encourage everyone aged 18-24 to apply and see where their business idea can take them.”

Many small firms are unprepared for imminent changes to the PAYE system, with only 64% aware of the changes that the introduction of the Real Time Information (RTI) system will bring, according to new research published today. The study of 1,100 small businesses across the UK, conducted by business software firm Sage UK, also reported uneasiness about the changes from many small firms, with nearly half feeling that the changes will increase rather than lessen their administrative burden and only one in ten recognising any potential positive impact RTI might have. RTI, due to be introduced in April 2013, will require employers to start providing information about employee PAYE, National Insurance and student loan information to HMRC at the point of payment each month rather than at the end of the year. The changes represent one of the most fundamental shifts in small business reporting and payroll requirements since 1944. Neilson Watts, Associate Product Manager at Sage, commented: “Although we have seen increased awareness for RTI over the last year, it is still concerning that so many businesses are unaware of the changes and the implementation this will have to their firm.  RTI will impact all businesses, regardless of their size, and with its introduction firms will benefit by streamlining processes, relieving the much dreaded nightmare of Payroll Year End and relieving the increased administrative burden for payroll at this time of year.  We urge that firms act now to not only understand exactly how it will impact their businesses but to adequately prepare for the changes coming into play.” For more information on RTI visit http://www.hmrc.gov.uk/rti/index.htm

US fitness chain Anytime Fitness has announced its intention to capitalise on Olympic fever by offering its business model to potential franchisees across the UK. Founded in 2002, Anytime Fitness now claims to have almost 1.5 million members in 2000 clubs spanning countries including the US, Canada and New Zealand. It was recently named the ‘Fastest Growing Fitness Chain in the World’ by health club trade association IHRSA and was also ranked number 1 in the fitness club category of the Entrepreneurs 500. Anytime Fitness claims that the steady revenue provided by annual membership fees is a more reliable source of income compared to other franchised businesses, and they also claim that the flat rate model of monthly franchise royalties is cheaper compared to a percentage of income model. The company estimates that startup costs for potential franchisees are around £150,000 – £250,000, with a full return on investment expected within 3 years. Karl Dietrich, Sales and Marketing Director at Anytime Fitness UK, said: “At this time of austerity and limited investment opportunities, Anytime Fitness offers a high level return in a recession resilient industry, with great potential for growth and expansion. Additionally, with only 12% of the population currently using a health and fitness facility there is still a huge market to access. Our community based culture means you will not only own a high yielding business, but you will be helping people in the community to get active and lead healthier lives.” To contact Anytime Fitness about becoming a franchisee call 0800 033 7773 or visit www.anytimefitness.co.uk

StartUp Britain has launched a new scheme to help fledgling UK start-ups get their products in front of one of Britain’s largest retailers. PitchUp! was unveiled last month as a sister scheme to StartUp High Street – an initiative offering empty retail space to UK start-ups at low cost – and has now opened for applications. Shortlisted applicants will be given individual feedback on their online application, including advice on their product, as well as their pitching technique. Those successfully selected by John Lewis will be offered unique access to a panel of their key buyers at a private event on 23 October. Unveiling the scheme last month, StartUp Britain co-founder Emma Jones said: “We’re seeing record numbers of people setting up businesses, and this new wave of entrepreneurs are starting out small and online. “This initiative offers them a chance to test out new markets, as well as get their products in front of big names like John Lewis.” To apply for the scheme, visit the PitchUp! page on StartUp Britain’s website

The first ‘PopUp Britain’ store opened for business this week, as part of a new scheme enabling promising start-ups to inhabit empty high street shops.

The store, part of StartUp Britain’s

This pilot store will stay open for three months, during which time six start-ups will inhabit the premises for two weeks at a time.

Emma Jones, co-founder of StartUp Britain, said the initiative is “win-win-win”, giving start-ups an unprecedented, cost-effective platform for their business, helping landlords make some money from empty properties, and helping to attract more people to Britain’s high streets. Prior to this week’s launch, the Richmond property had been empty for over a year.

Jones told Startups: “The plan is to spend these three months really getting the model right here in Richmond. We want to get it right for the tenants now, making sure they generate sales and pick up retail skills, and create a successful template that we can potentially roll out nationwide.”

The rent is being “crowdfunded” between the six different businesses, with each paying £135 for two weeks’ occupancy. “For one business, that would not be affordable,” said Jones.

The scheme has already received “invaluable” support from local retailers and StartUp Britain sponsors. This has included: a tailor-made, two-week shop insurance policy from AXA; six laptops from Dell; accounting software from Intuit; furniture and fittings from Dwell; online payments support from PayPal; and two weeks’ free billboard space from JC Decaux.

Retail experience

The initial six start-ups trading in the pilot store are: Bertie & Jack, which sells original artwork; Vulpine, a cycling apparel retailer; jewellery company Maria Allen Jewellery; Elephant Branded, a social enterprise selling bags and accessories; sock retailer Morrow’s Outfitters; and clothing company Tier One.

While the start-ups believe the unusually hot weather this week has had a negative effect on footfall, (after a bumper day’s trading on Monday, following the press launch) all six have already covered their initial outlay on rent for the two-week period.

Speaking today, on the fifth day of trading, Maria Allen, founder of Maria Allen Jewellery, said: “It’s been quite quiet but I’ve had sales each day so I’m happy with how it’s going. It’s really good to be able to meet all the customers and I’ve got lots of useful feedback that I may not have gotten if they were just browsing my website. Normally I just sell online so it’s really good to be able to talk to customers. I can also see which items are the most popular.”

Gemma Saggers, of Elephant Branded, agreed that it has been a positive experience so far. “We’d recommend it to other start-ups to gauge a feel of whether your product is right for the high street, because a product might be great online but that doesn’t mean it needs its own shop.”

Philip Morrow, MD of Morrow’s outfitters, who started his business from home 10 months ago, added: “Usually I’d be processing emails, working from home or planning for the future, which I can do here. At the same time we’ve got the opportunities of people walking in and browsing. I broke even within the first two hours, so everything I sell from now until the end is clear profit.”

To apply to be part of StartUp High Street, visit: http://www.startupbritain.org/highstreet/

HSBC Merchant Services has launched a new product to allow sole traders, freelancers and mobile merchants to take card payments anywhere.

The firm, which is one of the largest independent payment processors in the UK, has teamed up with eMerit Solutions Limited to produce the device, which allows entrepreneurs to complete card transactions using the internet connection on their smartphone.

The chip and pin device is expected to particularly appeal to merchants and retailers with a flexible working location, such as mobile hairdressers, taxi drivers, market stall traders and small businesses, such as cafes.

SagePay Mobile launched a similar product earlier this year and the latest offering from HSBC – which is fully secure and compliant with all major card schemes – will become universally available by the end of 2012.

Chris Davies, managing director of HSBC Merchant Services said: “The current economic climate has resulted in increased pressure on sole traders to retain loyal customers.

“By accepting credit, debit and gift card payments through smartphones and mobile devices, the eMerit device gives merchants the ability to process payments that will ultimately drive forward repeat business – quickly and easily.”

The government has launched a new scheme offering loans to young entrepreneurs, to help them start-up successful businesses.

The £82.5m StartUp Loans scheme, which was proposed by Sir Richard Branson last year and confirmed in this year’s Budget, will offer finance and support to entrepreneurs aged 18-24, in a bid to kickstart more businesses and tackle youth unemployment in the UK.

Applicants will receive advice and guidance, with the most promising going on to receive formal mentoring and training, including help with developing a business plan. Those with “robust and approved” plans will be eligible for loans of around £2,500.

Unlike student loans, the maximum repayment terms on offer will be five years, while the interest rate will be set at the Retail Price Index (RPI) plus 3%, with all repayments and interest channelled back into a central pot to support other young entrepreneurs.

Commenting on the scheme, which forms part of the government’s ongoing ‘Business in You’ campaign, Prime Minister David Cameron said: “I want this to be the year where people can think yes, I can do it, that we can get as many viable businesses as possible off the ground, that people can have a go, and that we see a whole new wave of entrepreneurs who start small but think big.”

StartUp Loans will kick off with a £10m pilot this financial year; if successful, the scheme will be bolstered by a further £32.5m in 2013/14, and £40m in 2014/15.

Partners

The loans will be administered by a handful of ‘delivery partners’ – organisations with experience in helping young people start businesses – such as the Prince’s Trust. These partners will provide support and mentoring, assess the viability of young people’s business plans, and manage repayments.

James Caan, entrepreneur and former ‘Dragon’, will chair a new body set up by the government to oversee the scheme, with other board members including Duncan Cheatle, founder of The Supper Club, and Julie Meyer, founder of Ariadne Capital.

Caan said: “The StartUp Loans initiative provides guidance, access to expertise, and finance. These are the three vital ingredients for starting your own business.”

Young entrepreneurs

One young entrepreneur hoping to benefit from the scheme is Kaylie Hill, a 23-year-old graduate from Swindon, who has struggled to access the funding she needs to get her business – a women’s footwear fashion brand – off the ground.

She said: “I approached the bank for funding but they said I needed to improve my credit rating. As I had been a student up until that point, I hadn’t had the opportunity.

“I approached the Princes Trust, but they said I had to be unemployed to qualify – I couldn’t afford to lose my job or I wouldn’t be able to live.

“I even looked into angel investment, but I found [this was more suitable] for bigger investments and they would want a portion of my business – which is not for me.”

If successful, Kaylie plans to use the loan to buy material to make her first collection, to take to potential stockists.

Lord Young report

Today’s launch also coincides with a new report by Lord Young, the government’s enterprise adviser and the ‘Godfather of StartUp Loans’, which found that if the UK were to match the rate of entrepreneurship in the US, we would have 900,000 more businesses.

The report also argues that the internet, along with the amount of support available for those looking to start a business today, has significantly lowered the barriers to entry for entrepreneurship, meaning that now is “a great time to start a business”.

Media and technology company Blis Media has received a fresh tranche of funding worth $1.4m, led by two new investors.

Meridian Growth Capital, the investment vehicle of touch screen pioneer Hal Philipp, has invested in Blis for the first time, as has Ballpark Ventures. Meanwhile, existing investor Beringea LLP has increased its stake.

Philipp, inventor of the touch screen technology which is currently used in over 60 models of mobile phone around the world, has taken a seat on Blis’ board as part of the deal. The investee’s existing CEO, Gregor Isbister, will keep his current role.

Founded in 2004, Blis now boasts bases in London and Sydney, and provides targeted advertising solutions for the likes of Epson, Google, adidas and Unilever.

Discussing the investment, Philipp said: “The technology Blis is building is incredibly interesting. It has the potential to add a lot of value to advertisers, scale very quickly and as such can be a very disruptive force in the ecosystem.”

Gregor Isbister, CEO at Blis, commented: “Having Hal on board is an amazing asset to the team. The technology he developed has changed the face of our industry and reaches hundreds of millions of people every day – it’s mind-blowing!

“The experience Hal brings in building and expanding businesses, and the expertise in technology and IP protection, is immense.”

Eco-entrepreneurs have just over one day left to apply for an accelerator programme backed by former Dragon James Caan.

The Berti Green Accelerator is offering three green entrepreneurs “the full toolkit needed to succeed in growing a successful and meaningful business” – including funding of up to £1m each and business support and expertise from James Caan’s Hamilton Bradshaw Impact Partners (HBIP).

Seth Tabatznik, director of Berti Investments, said that while socially or environmentally conscious entrepreneurs frequently have the vision and passion to make a difference, they often lack the business know-how to make their idea really appealing to investors.

He told Startups: “With global concerns around climate change and social inequality increasingly emerging on the mainstream agenda, great innovative start-ups are appearing all round the world…creating enterprises that aim to make a difference.

“But two significant barriers stop social entrepreneurs in their tracks: funding and support. Here in the UK, while investor confidence in the green industry remains low, businesses need to prove their skills to be a head above the rest in order to attract funding in this increasingly competitive landscape.”

The accelerator offers what Caan refers to as “intelligent capital”. As well as funding, the three winners will receive six months’ worth of business support from HBIP, covering every aspect of running a business, helping them to create the right management processes and structure, forge strong business relationships and build a strong brand.

The judges will be looking for green businesses that can demonstrate both a sustainable approach to carbon reduction, and a scalable and profitable business model.

Applications for the Berti Green Accelerator close at 8pm on Tuesday 17 April 2012. For more information and to apply, visit the Berti Investments website

Would you accept angel investment from the government?

That is the question being asked by the Young Entrepreneur Society (YES) today, as it launches a campaign for the government to “put its money where its mouth is”.

The Entrepreneurial Government campaign, which is currently open for public discussion, proposes that the coalition could encourage youth entrepreneurship by becoming an angel investor itself.

Under the proposals, the government would help 10 of Britain’s brightest young entrepreneurs (each year) raise investments of up to £50,000, in return for equity in their businesses.

The final 10 would be screened by a yet-to-be-announced panel of high profile entrepreneurs and experts, and the investments would be accompanied by mentoring from YES and the panellists.

If successful, the scheme would reinforce existing government initiatives, such as the recent Business in You campaign, by providing start-up capital for Britons to springboard their business ideas into reality.

The idea is that, as an angel investor, the government would receive a return on its investments, which can then be reinvested into other promising businesses.

YES’s 22-year-old co-founder Carly Ward, a young entrepreneur herself, explained:

“Young people have fantastic ideas for great businesses that can provide wealth and jobs for our country and the government wants to encourage this.

“YES is calling for the government to stop talking about it and become more entrepreneurial themselves by investing in Britain’s young entrepreneurial talent.  They can make a good return on their investment and reinvest in more businesses in the future.”

YES already has the attention of the government, having yesterday announced that the coalition will introduce the organisation’s ’12 steps to success’ programme as a recognised enterprise qualification. It will be used to teach young people aged 16-18 how to start their own businesses.

You can share your thoughts on the Entrepreneurial Government campaign in the comment box below, or by voting YES or NO to the initiative on the YES website

Small businesses can now create their own ‘off-the-shelf’ app for just £250, thanks to a new service from South Manchester developer Apps4.

The service offers clients a choice of two distinct app models: 4Vouchers, which enables retailers to offer discounts and promotions to smartphone users, and 4Downloads, which is designed for the playing of tracks, soundbites and videos, and is intended for clients in the music business.

Each model is available as a starter package, with upgrades such as GPS and digital ticketing functionality available for an additional cost.

Henry Hochland, co-founder of Apps4, said:  “We truly believe that apps are the way forward for start-ups and smaller firms and, as our new service shows, they don’t have to cost the earth.

“Apps allow companies to learn about their customers’ preferences and shopping habits while enabling them to use that information to refine their business strategies. They also provide companies with the opportunity to build brand loyalty by offering exclusive, app-only promotions and offers.”

For more information, visit www.apps4.co.uk

Funding Circle, an online lending marketplace for small businesses, has closed a £10m Series B funding round led by Index Ventures and US-based Union Square.

A number of angel investors, including Better Capital founder Jon Moulton and Betfair co-founder Edward Wray, also made significant investments in the funding round, which takes the total amount invested in Funding Circle thus far to £13.2m.

Since launching in August 2010, Funding Circle has helped more than 670 small firms secure finance via its peer-to-peer exchange, which enables investors to lend to early-stage companies without the need for banks or intermediaries.

The site has grown at a yearly rate of more than 400% over the last two years, and the total value of loans it facilitates now exceeds £1m per week.

Plans are in place to double the company’s staff base over the next 12 months, and co-founder Samir Desai hopes the Series B money will fuel continued innovation.

Desai said: “At present 90% of the small business lending market is made up by five major high street banks. This lack of competition has continually stifled the attempts of small businesses to gain access to much-needed finance. At the same time investors continue to receive pitiful returns on their savings.

“At Funding Circle, we are delivering an innovative service that removes the outdated and laborious processes of the banks. We deliver a better deal for businesses and a better deal for investors.”