2015 looks like it may well be the year where the “two E’s” collide in a positive manner – where Entrepreneurship meets Economics, so that novel ideas and their owners meet with the capital and other resources to ensure that their enterprise becomes more than a “one hit wonder”. Whilst entrepreneurs are compelled to bring new ideas into existence regardless of the economy, it obviously helps if ideas are launched at a time when people and businesses are in the mood and with the means to buy them.such as Anita Roddick, who started The Body Shop next to a funeral parlour in Brighton in 1976, estimated to be one of the best years in the UK in terms of well being.
What then makes me suggest that 2015 is going to be a good year for entrepreneurs?
Economics, Economics, Economics
I was speaking with my friend Dr Andrew Sentance on his economic forecast for 2015 recently. A former member of the Bank of England’s Monetary Policy Committee Andrew is currently Senior Economic Adviser for PwC and a member of my band Rock In The City, dedicated to humanising the square mile through rock music. He outlined several reasons to be cheerful:
- Economic growth is forecast to be 2.5% in 2015. Andrew suggests that only the US will do better among the G7 economies in the coming year.
- Investment is forecast to grow by over 6% in 2015.
- Inflation is low and set to fall further. Consumers may gain some much-needed economic relief in terms of prices.
- Unemployment is expected to fall to 5.5% by the end of 2015.
- Wages growth is picking up – expected to be 2.4% next year. When combined with low inflation, people can expect the first improvements in living standards since the financial crash.
- Real household disposable income is forecast to rise by 2.3% in 2015, providing the consumer with some purchasing power for the first time in several years.
The one thing we can be sure of is that the future is that it is subject to change. Nonetheless, these predictions do line up to offer hope that we will be gently lifted out of recession for the first time in around 7 years. What then does the improved economic climate offer for the entrepreneur?
Reasons to be cheerful … for Entrepreneurs … 1, 2, 3
- If your enterprise is operating in what I call one of the “Brain Based Industries” you are likely to find a fertile climate for growth in 2015. These include biotechnology, nanotechnology, 3D printing and computing development, which shows no sign of having reached a plateau in our imagination of what’s possible.
- The service sector and creative industries are also predicted to show significant growth. If you are an entrepreneur with a creative idea or service, which makes people’s lives better in some way, now is a good time to be thinking of starting your business. My long experience of working with creative people reminds me to also say that you must couch your service in terms of simple to understand consumer focused benefits and not. Some creative minds are prone to think that people will beat a path to your door to seek out what you offer, however difficult you make it for them. That is the exception and not the rule.
- Finally some traditional industries are also set for growth with good forecasts for the construction industry and consumer goods. We need also to look at ways to innovate in these industries to make sure that our contributions in this area employ sustainable technologies and materials. This is an area where entrepreneurs can play their part.
We must learn to unlearn
It’s been a long haul through the deepest recession for many years and I’m personally hopeful that we will learn from the lessons of economics to create a more sustainable world economy. That’s not simply learning new things, but also unlearning out-dated habits that create boom and bust economies in favour of a more sustainable world. In this context, we finish with a song that Andrew Sentance loves for it’s rather cheeky Ian Dury inspired lyrics about economics and entrepreneurship. I wrote the song as a call to action for a more sustainable world, plus it was a lot of fun to do …
and, of course, one of the inspirations for Andrew’s predictions: