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Liberal Democrats Entrepreneurs Network 2017 TIME for CHANGE HOW LIB DEMS and ENTREPRENEURS WILL WORK TOGETHER for BRITAIN’S FUTURE

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Liberal DemoCrats Entrepreneurs Network 2017 TIME FOR CHANGE HOW LIB DEMS AND ENTREPRENEURS WILL WORK TOGETHER FOR BRITAIN’S FUTURE TIM FARRON ENTREPRENEURS STAYING IN THE WHY WE ARE THE WHY WE SINGLE MARKET ONLY PARTY FOR SUPPORT THE TO PROTECT THE BUSINESS LIB DEMS ECONOMY We are at a pivotal moment in history. Entrepreneurs are Britain has a choice to make, between becoming an inward-looking, nationalist and exclusive agents of change country or being outward looking, internationalist They are forward looking. They innovate, take risks, committed to the latter and we believe most disrupt entrenched interests. They take responsibility entrepreneurs are too. for creating their own future. Britain desperately needs change. Our economic This means: We are proud of our record in coalition, but that is Respond to increasing automation by actively system and liberalism are under attack. The rise in the past. Now, to deliver our vision of the future, working to identify and invest in those skills of populism is challenging both government Creating an economy in which individual we need the help of entrepreneurs to: and areas of the labour market which will and business. There has been talk about the endeavour is rewarded. require a high level of human input into the end of capitalism. Develop the policies that will protect and foreseeable future. Creating a tax system that encourages enhance a free, liberal and green economy for Furthermore, over the next two generations we enterprise and in which everyone pays the future. Invest in skills training and lifelong learning, face massive challenges to which, at the moment, a fair share. including ensuring that any money from the there are no adequate political responses: Brexit, Boost our skills and resources so we can win Apprenticeship Levy is actually spent on automation, climate change, and a digital revolution Challenging corporate power and monopolies. more elections. education and training, rather than becoming which is, and will continue, transforming all our lives. just a payroll tax. Providing the physical and digital Raise funding to enhance our campaigning and infrastructure necessary for success. communications capacity so we can shape the Expect all 16 to 18-year-olds to study maths opportunity for Britain to change direction. political agenda, out of government or in it. as is normal in many other countries, while Ensuring the open market for the skills, goods, encouraging arts education as the digital We seem set on a path to the hardest of hard labour and services that are needed to compete This is a Brexit election but it will also shape our economy also relies on creativity. Brexits, outside the single market, with severe with the very best. country in many ways for generations to come. limits on free movement, businesses leaving, and We will: Overhaul business rates, taxes and reliefs, extreme harm to our economy. Politics is becoming ever more unstable and through a review led by Vince Cable. less predictable. Down and almost out in 2015, But it doesn’t have to be this way. Every vote for today the Liberal Democrats are the only political say on any Brexit deal, including the option to Create a £100 per week start-up allowance an open, tolerant, inclusive party like the Lib Dems voice in favour of remaining in the EU. And no remain in the EU. for up to 26 weeks and increase access to will give pause for thought. And every seat we win party in Britain is growing faster than the Liberal Democrats, taking back real power in local Fight to remain within the single market and opposition it so desperately needs. government over the past two years and – with customs union in the Brexit negotiations. Treat broadband as a “fourth utility”, and create your help – who knows where this tide of change That’s why we need your help – the help of might take us on June 8. Prioritise in Brexit trade negotiations Britain’s broadband across the UK. entrepreneurs. start-ups and tech sector, and work with Liberal Democrats are committed to a free entrepreneurs to identify what practical steps are Ensure that the curriculum provides for the We share much in common: we too are economy, a stable democracy and an open, needed to open up new markets elsewhere. development of computing, coding and machine disrupters, challengers of the establishment, tolerant and united society. Our ambition is to be architecture skills, while also ensuring that all believers in freedom. the agents of change for Britain. Develop the skilled workforce needed for growth by investing in education and guaranteeing the whatever technology is actually available1. We understand that entrepreneurs are the most But we can’t do this without you. rights of EU workers to live and work in Britain, likely people to develop the strategies and products allowing high-skilled workers into the country to address the challenges Britain faces. But they If you share our vision and our ambition, then through a minimum six-month visa. can only do so if politicians tear down the barriers this is the moment. It’s now or never. Get involved. their ambitions. 1 The recommendations in this paper are the views of the members of the Lib Dem Entrepreneurs Network. Tim Farron They do not necessarily represent Lib Dem party policy, Leader, Liberal Democrats which is set out in the party’s election manifesto | 3 Entrepreneurs Matter Entrepreneurs are the economy’s wealth creators. They are people They are prepared not just to work hard, but to back their judgment who are able to see an opportunity that others do not recognise. with their own money and resources, at a level that will cause them They have an unquenchable self-belief that this opportunity can be realised through hard work, commitment and creativity. back the same traits in others. Results Furthermore, entrepreneurs are not discouraged by scepticism. If this describes you, then this paper is for you. 11,575 2015 A growth sector Starting up 10,754 2014 9,979 2013 657,790 2016 12.6% 57% The lack of growing businesses hampers £ 225 5.5 608,110 2015 UK 8% UK productivity. OECD data shows that 3.5 million Britain is near the bottom of the table for BILLION GDP million the percentage of businesses that grow to of Britain’s serial entrepreneurs 581,173 2014 Germany more than 10 employees after three years. 4.68% businesses to scale up started their business by age 25 2000 Today could add up to £225 But the number of high-growth companies billion in GDP and There are increasing numbers of ‘serial (or scale-ups) is increasing. These are Private sector businesses are the The number of new start-ups is growing 150,000 jobs to the entrepreneurs’, people who have started backbone of the economy and give the year on year: 657,790 businesses were population is actively trying to start a UK economy by 2034 more than one business, and business employees that grow their revenues or UK a competitive edge. In 2000 there started in the UK in 2016, up from according to Deloitte. careers are starting at a younger age. were 3.5 million private businesses in 608,110 in 2015 and 581,173 in 2014. the UK. Today there are 5.5m. a three-year period. SMEs and their role in job creation New faces, new businesses The challenges 15.4% 10.5% 5.3% Only 60 £1.8 employed working Immigrants Returning migrants Lifelong residents 1.8 trillion Immigrants and returning migrants are The percentage of the UK adult population reach £1 million While 15.7 million (six out of 10) of us engaged in starting a business: are already employed in the private sector more likely to start and grow new While the UK now has a larger number of impact on job creation. They represent private-sector turnover in the UK. businesses in the future, creating wealth start-ups than ever before, few survive to yet their long-term average contribution three-quarters of all small businesses and jobs for Britain. generate at least £1 million in revenues after are sole traders. these ‘scale-ups’ that underpin long-term others are driven to sell. competitive advantage, economic growth, 1 in 7 UK companies are founded by migrants, and jobs and productivity. companies 1 are founded 7 by migrants entrepreneurs (Building our businesses, creating our jobs) 4 | | 5 The Party of Entrepreneurship Every political party claims it is the party of business judged not by what we say but what we do. We believe in a free market underpinned by a We radically reformed the banking system to vibrant democracy. separate retail and investment arms and help The Political Market rebuild the economy. We argue that a successful economy is essential to support the investment in education, health We put in place the legislative framework for took sole control. Despite long claiming to be ‘the care and infrastructure that we all want to enable rapid growth in new industries, such as the party of business’, increasingly entrepreneurs tell us to live better lives. us they don’t trust this government. We recognise that individual entrepreneurs and We enabled the creation of two million They held and lost a referendum on Britain’s businesses – free from unnecessary central apprenticeships for young people to give them a membership of the EU and now seem determined control and unhelpful bureaucracy – are vital to upon delivering the hardest of hard Brexits. boosting the economy. We directed billions in EU and government Brexit has the potential to be the single We think that the role of government is not to funding towards growing British business most self-destructive political intervention run or replace businesses but to create the best through the industrial strategy and regional in Britain’s history.
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