The Regional Aid Programme is run by the government and gives money to the businesses as a grant. This grant will get the business to locate in poorer economic areas of the UK. These areas are known as assisted areas. The Government gives grants to set a business up in a poorer area to help reduce unemployment in areas, which have a relatively high unemployment rate. The advantage of this source of help would be that Donald will not have to pay interest rates to the Government – he will not have to pay the Government back.
However, Donald wants to set up in Crawley, which is not a poor area in the UK since it has a relatively high employment rate. Since Donald will be setting up in Crawley, he may not be able to get the grant from the government. Also, Donald will not want to set up in a poorer area, which has a relatively low employment rate, because Donald will not get potential customers that are able to afford his products. The DTI is responsible for the success of a business in the UK. The Department of Trade ad Industry provide advice and leaflets and also display a lot of advice on their official website: http://www.
gov. im/dti/. Donald would benefit from the DTI because it will give him plenty of helpful advice to get him started. Donald will benefit from the DTI because he will get advice for free however, the information may not be helpful for Donald. The Central Statistical Office provides a wide range of issues, which will be of use to many businesses. The CSO are able to provide information such as population statistics, spending patterns, inflation, unemployment rates and much more.
The population statistics are important for Donald because it will give Donald an idea of how many customers will visit his shop. Although the CSO will be able to provide a lot of information to Donald, Donald may find it difficult to interpret this information into his business because he has not been professionally trained as yet. Training and Enterprise Councils can be found in most large towns and cities and they offer services to small businesses. TECs also operate the enterprise allowance, which is a grant available for the unemployed (e.
g. this might be due to becoming redundant) that start up a business. If Donald uses the help of the TEC his employees and he will be able to get day seminars of training on how to run the business. Donald may also receive a grant, which he will not need to repay. However, the TEC takes a long time to offer services to businesses because Donald will need to register for it – lots of paperwork is involved. Also, Donald may not have enough time to attend the training sessions. The EU provides grants to the public and private sector businesses.
These grants can be provided for research and development, job creation and training schemes, improving infrastructure and developing energy supplies. Donald will be able to get grants from the EU so will not have to pay money back to the EU. However, it will take a long time for Donald to register for the EU. There are also sources of help provided by the private sector. Unlike the public sector, the private sector will be expensive for Donald. Help sources from the private sector include banks, accountants, trade association and chamber of commerce.