Struggling entrepreneurs need real help and a second chance, says SFA

A new early-warning and assistance programme for struggling small firms needs to be established to help reduce the stigma of failure in business.

The Small Firms Association (SFA) yesterday issued the call to develop a second chance entrepreneurial support programme to help small business owners reverse the fortunes of a failing business, in line with similar programmes in other EU countries.

SFA assistant director Avine McNally said the programme should also be available to entrepreneurs whose business has failed but who want to establish a new start-up.

“While Ireland recognises the critical role of entrepreneurs and indigenous small businesses, there is a stigma surrounding business failure.

“To develop our indigenous business structure, we need to ensure that Ireland offers entrepreneurs support to turnaround a business from the brink of crisis, assist with restructuring if the business foundation is untenable and even after failure help in the establishment of a new business venture,” said Ms McNally.

According to the SFA, business owners need more help to identify situations that could lead to the insolvency or closure of their business.

The second chance programme would provide greater clarity for struggling businesses and help them design a plan that would ensure a return to positive cash flow.

The programme is also needed to combat the fear of failure which recent figures indicate is on the rise in Ireland, said the SFA.

The 2013 Global Entrepreneurship Monitor showed that 45% of Irish entrepreneurs fear failing with their business venture, compared with 35% in 2006.

“To develop our indigenous business structure we need to ensure that Ireland offers entrepreneurs support to turnaround a business from the brink of crisis, assist with restructuring if the business is untenable and a better chance to make a fresh start,” Ms McNally said.