Central to the debate was whether financing was available to those with a good idea – or to a small company that needed to be catapulted to the next stage. Ariadne Capital CEO and Entrepreneur Country founder Julie Meyer said she was convinced capital will still follow a good idea, even in an economic downturn.
And in an energetic performance, the Chief Marketing and Knowledge Officer of Booz & Company – and former editor of Harvard Business Review – Tom Stewart outlined the main challenges facing entrepreneurs.
He said that firstly they must survive the meltdown by remaining confident in the plans they have for their business. They must also adapt to the carbon-constrained world by being aware of the impact it will have on their organisation. Thirdly entrepreneurs must act with speed. This means being first in research and development and meeting consumers’ expectations by reacting to their needs immediately.
For many entrepreneurs the reality of sourcing finance is harsh. During a discussion on the topic of financing, Balderton Capital’s Dharmash Mistry said equity finance was certainly obtainable, but admitted that debt financing was proving more difficult. However, he agreed investors were still looking for great marketable ideas.
Meanwhile, Frog Capital’s Mike Reid said it was tough for entrepreneurs to raise money and that many deals he had been involved in since 2007 had been “challenging”.
Certain sectors are finding it easier to get money than others. Allyson Reed from the Technology Strategy Board, the government body set up to support innovation in technology, said funding was more readily available for entrepreneurs in the energy, environment, healthcare and digital media industries.
For some entrepreneurs, the mere fact that there are odds stacked against them is the spur to being successful.
Stewart was joined on stage by Mark Blandford, founder of Sportingbet, who proved that building a business in adversity is not only possible, but sets the foundations for a strong future business.
Blandford had to persevere to find money to buy his first betting shop and later bring the company back from potential disaster when online gambling was banned in the United States. The struggles he faced are typical of those that entrepreneurs suffer when they are pioneers.
Blandford is poacher turned gamekeeper and has become a successful venture capitalist investor. He urged entrepreneurs not to be put off by the recession or difficulty finding money, saying he is still prepared to buy into a fantastic idea.
David Alberto, founder and CEO of serviced offices company Avanta, is proof that determination is the mark of a true entrepreneur. He entertained the audience with tales of broken noses, a last minute name change to his company and difficult chats with his wife. But at its heart, Alberto’s tale is one which proves that keeping a sense of humour is an important part of entrepreneurial success.
Alberto delivered a recipe for building a successful business for other entrepreneurs. It includes the need to:
- remain focused
- recruit good people and empower them
- always do due diligence however good your relationship is with a business
- take time out of the business to enjoy other things in life
- embrace change
Entrepreneur Country might for the most part concentrate on those entrepreneurs who have succeeded in new technologies, but every good business shares similar characteristics.
Sir Peter Vardy is proof that even the old style businesses can be reinvented with the right vision and leadership.
Vardy left school at 16 to join his father’s car business and eventually built a car dealership with sales of £2bn and profits of £50m.
Sir Peter’s advice for other entrepreneurs who want to follow his success is a simple mix of commonsense. He told them to be prepared to take risks, have a vision linked to a strategy, not to underestimate the importance of marketing and to get employees playing to their strengths rather than spending too much time trying to iron out their weaknesses.
Sir Peter sold the business for £506m in 2006 and today is more of a social entrepreneur as he brings his business skills to improve schools and prisons.
If this is truly a golden age of the entrepreneur it is people like Sir Peter who will lead the next generation.
Tom Stewart's presentation Five Challenges for the Next Five Years
Mark Blandford's presentation The Struggles of a Pioneer
Check out photos from the event here
