Deborah Meaden: Small businesses will get us out of the economic doldrums

The Dragons' Den star discusses why small companies are key to Britain's economic future, her reaction to the launch of a new bank for SMEs and why she’s backing a scheme offering entrepreneurs free local newspaper advertising.

The latest series of Dragons' Den may have finished screening, but long-standing panellist Deborah Meaden hasn't laid aside her judge's hat just yet. Taking her expertise outside the Den, the entrepreneur is now ambassador for a new mentoring scheme, Local Business Accelerators (LBA), which aims to provide 1,500 small businesses with advice and advertising opportunities with one winning a year's mentoring from the Dragoness herself. 

Local Business Accelerators

Speaking to BusinessZone.co.uk about the initiative, she explains: "This scheme is for businesses which are going to create jobs, plug into local communities and help us get out of the economic crisis.

"We're going to choose 1,500 businesses with good people and good ideas and offer them mentorship from local leaders who are well networked, well connected and will focus them on the right things. On top of that we're going to offer them £10,000 of free advertising in a tailored ad-campaign in their local newspapers."

Led by The Newspaper Society, Meaden believes the scheme will be provide invaluable marketing opportunities for small businesses: "It's easy when times get tough to cut the ad campaigns and I think that's the wrong thing to do. You need to tell more people about your business and not less.

"Research tells us that of the people who read the regional and local newspapers, 60% are then driven to an action. Those papers have a very strong place in the community. Most local businesses have a huge number of local customers and they’re going to advertise directly to those people."

Explaining the mentoring element of the scheme, Meaden says: "This might scare more people rather than encourage them, but of the 1,500 businesses, we're going to choose one entrepreneur who I will mentor for the year."

Having seen almost every kind of entrepreneur over the six series of Dragons' Den, she explains that from the shortlisted companies, she will be looking for someone who "shines". They must have a clear vision and understanding for their company, and must profit the local community with employment opportunities, she adds. 

Critical of funding schemes, Meaden is keen to highlight the combined elements of advice and advertising within the scheme:“Funding clearly is important and worries most businesses but it's not the only thing. If you can ensure businesses are on the right path and shouting out to the right customers then they don't get themselves into a funding crisis later on down the line.

"If there's one thing that I’m very passionate about it's not just the survival but the thriving of our small businesses. If there's anything that's going to get us out of the current economic climate, that's where it's going to come from," she says. 

Government initiatives

When asked for her views on the government's small business initiatives she divulges her scepticism, attributing it to schemes which fail to produce the funds they promise: "Businesses need cash support from banks but are yet to receive any," she says. 

Responding to this week's news of the creation of Shawbrook, a new RBS-backed bank for small firms, Meaden is hopeful funding will genuinely become more accessible: "The single biggest problem I hear from small businesses at the moment is not that they're unable to get funding, but instead that they're having their funding reduced or withdrawn, and that’s really bad news.”

Meaden is proud to announce the government’s support of LBA, which prime minister David Cameron endorsed as "an excellent initiative".

Meaden says: "The government should create an environment for businesses to thrive and to encourage them; it shouldn't try to run businesses. The government should be working through schemes like this because it places the responsibility with the company owners."