Sir Alan blasts small business owners
‘Majority of struggling firms don’t deserve help’, says former Amstrad boss
The new government Enterprise Champion Sir Alan Sugar has launched an attack on what he calls small business ‘moaners’.
The Apprentice star said the majority of struggling bosses do not deserve support and that some companies should be allowed to go bust.
Lord Sugar said that of the companies he has spoken to in his new government role, there were good reasons why banks had not lent them money in 85% of cases.
He said: “The moaners are bust. They are bust and they don’t need the bank – they need an insolvency practitioner.”
Speaking to an audience of small business owners at an event in Manchester, Lord Sugar attacked companies that blame their cashflow problems on banks.
“I hate the use of this word cashflow in the sense in that it is a business problem. Banks are there to do business. Anyone who says they are not is wrong,” he said.
“I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn’t lend a penny to.”
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He added that ‘younger people’ who were used to the way the banks lent during the last 10 years ‘lived in the unrealistic Disneyworld in the way banks dished out money’.
Phil Orford, chief executive of the Forum of Private Business (FPB), responded to the remarks insisting Lord Sugar’s comments were ‘misguided’ and showed a ‘worryingly dismissive’ attitude to small firms.
He said: “Sir Alan’s comments were quite insensitive and completely erroneous on several points.
“Perhaps his £700m fortune has dulled his memories of running a small firm and lessened his understanding of the very people the government hired him to represent.”
© Crimson Business Ltd. 2009
*picture courtesy of damo1077