A Little Help From Our Friends
This week we've been busy writing a start-up manifesto with our friends at Coadec. It will cover a lot, including access to talent, regulations and tax reform. The aim is for this to influence whoever comes to power on 12 December. It includes some awesome ideas – many of which were sparked by speaking with our 10,000 strong network of entrepreneurs.
We're also busy planning a hustings with our allies at Enterprise Nation and IPSE, which will be hosted in Morgate by the ICAEW. Speakers and timings will be announced next week.
Regarding the election itself, a friendly entrepreneur got in touch to suggest that business owners "allow staff to arrive late or leave early so that they have time to vote." Polling Stations will be open from 7am to 10pm, but I think his point of offering clarity to employees on whether or not they can turn up a bit late makes a lot of sense (unless you suspect your employees will vote the wrong way!)
Micro management
Our pals – yes, we are a friendly bunch here – at the Small Business Charter have just launched a new programme to help micro businesses use tech to grow.
The Leading to Grow programme is part of a broader ￡9m package of measures to support small businesses through the Business Basics Programme (run by BEIS and Innovate UK).
Businesses can apply online or directly via one of the 15 business schools across Yorkshire, the Midlands, Manchester, Newcastle and London. Spread the word!
Nudge, nudge
The Behavioural Insights Team – informally called the Nudge Unit – has a report out on applying behavioural insights to business policy. In behavioural economics, Nudge is a theory that proposes positive reinforcement and indirect suggestions as ways to influence behaviour and decision making.
It's a useful report, but I've got reservations about some of the findings of behavioural economics. For example, even something as seemingly uncontroversial as the sunk cost fallacy – e.g. that we too readily throw good money after bad – may have its uses. (If you want to read more about this, check out this article from Jason Collins).
At the extreme, there are no doubt ways that government can help businesses make better decisions. Behavioural economists sometimes call this "choice architecture", framing information and choices to nudge business owners into making the 'right' decisions. However, the primary focus should be simply making any decision easier for business owners. Until entrepreneurs' interactions with government are at least half as slick as Estonia's (read my thoughts on Estonia here), simplification should be our number one priority.