A large proportion of small business owners are struggling to afford to run their businesses at the moment, with the cumulative effects of the pandemic, Brexit and world events pushing costs up. However, disabled entrepreneurs have always found things harder.
One issue has traditionally involved the difficulty in accessing finance. This is why it’s significant that the Government has just announced a new initiative, along with several major banks, to make this easier.
The Struggle for Finance by Disabled Entrepreneurs
The recent Lilac Review revealed both the potential of disabled entrepreneurs and the problems facing them. It found that improving chances for them to set up businesses could potentially add £230 billion to the UK economy.
Some lenders already have schemes in place that are tailored to disabled business owners. However, negative images of disability has led this group to be traditionally regarded as higher risk, and many lenders have shown reluctance to provide the finance needed to get their businesses off the ground.
The New Code
The Disability Finance Code for Entrepreneurship is a partnership between the Government and a number of major banks, including Barclays, HSBC UK, Lloyds Banking Group and NatWest. The aim is to tackle inequality and provide services specifically targeted at disabled people wanting to start their own businesses.
The primary aim is for the partner organisations to improve access to financial products, but the code covers a wider remit. They are also committing to improve mentorship, highlight a more balanced and positive image of disabled entrepreneurs and increase disabled representation among their own staff groups.
According to Joseph Williams, CEO and co-founder of small business Clu, “When disabled entrepreneurs are given equal access to finance, society gains in ways that go far beyond individual success…The Disability Finance Code paves the way for a fairer financial system that doesn’t leave talent untapped.”
Making the Most of Your Business
Whether or not you’re disabled, running a business can be challenging, especially in a difficult economic environment. Accessing finance can make the difference between success and failure, especially if you’re staring up a business. It’s encouraging that this option may now be available to entrepreneurs who have in the past suffered discrimination.
However, finance doesn’t keep your business afloat in the long term. For that, you need healthy cashflow, which means you must have an efficient credit control system in place — including strategies for following up problem payers.
Give me a call if you need help getting outstanding invoices paid, whether that means working with customers who are struggling to pay or being firm with those who are trying to get away with keeping your money.
