What is entrepreneurial spirit? Well, it really is about having the guts to go and follow a dream. We all know people who come up with a good idea or product for the market……but do nothing about it. Entrepreneurs have a ‘belief’ in themselves and are prepared to put their house on the line in the pursuit of building a business.

Very often small growing businesses don’t look at the big picture. The most common mistake I come across is entrepreneurs not getting any real financial support until they are forced to. This is a huge mistake – I’ve seen some businesses reach a turnover in excess of £5 million before getting serious about financial planning and control.

The current economic conditions may be particularly tough, but with such circumstances do come opportunities and some entrepreneurs are likely to make a fortune because of, rather than in spite of, the current downturn.

In recessionary times more people start businesses than at other times, because of losing their jobs. The better entrepreneurs will still thrive in this environment, and in many ways these times provide a great opportunity of wealth generation.

SME’s may have additional obstacles to overcome because of the global problems that now exist, but the entrepreneurial spirit that exists in the Midlands will hopefully see the vast majority of businesses through these difficult times.

There has been much talk about the possibility of a ‘double-dip’ and this is clearly a worry, but by no means a certainty. However, despite all the current problems, we are continuing to invest in well-managed businesses with good products or services.  However, it is true to say that we are inevitably a little more cautious.

We are starting to receive more approaches for funding and it is crucial for any management team looking to attract investment that they present their case clearly and with sound strategic objectives. This means demonstrating a number of key elements via their business plan including: what the additional investment would be used for, what opportunities exist within their marketplace, as well as a clear understanding of who their competitors are and any future market, together with realistic financial projections.

Catapult is currently looking to support investment opportunities via our Advantage Enterprise and Innovation Fund which is specifically targeted at businesses looking for up to £2m of equity funding to grow. The active investment period for this fund comes to a close at the end of this year so businesses need to approach us not later than October.

We also have the CGF Fund which can provide up to £2m of equity investment to help fund needs as diverse as Management Buy-outs/Ins, acquisition finance, expansion/working capital and refinancing; and this fund fills a major equity gap in the marketplace at sub £2m equity investment level.

Even well run businesses can struggle during a major downturn in the economy, but tight financial controls can help limit any damage and enable an enterprise to be well placed to take advantage of any upturn in the economy.

For further information please go to: www.catapult-vm.co.uk or ring Catapult Venture Managers on 0121 616 0180.

For further information contact Graham Mold at Catapult Venture Managers on 0121 616 0180 or 07768 148187 or Paul Shrimpton at PSPR Ltd on 0121 354 7311 or 07979 505322.