There’s a financial black hole in the UK’s economy that’s now soooo big that it’ll take us 30 years to pay it off. No longer will I listen to this Government’s talk of financial prudence… she left a long while ago.
In fact I heard last night that our decline in GDP, now expected to fall by more than 5%, is the highest since and including the depression of the 1930s…. incredible, disastrous in fact.
But interestingly while the rest of the economy is struggling, jobless figures are still rising and are sure to continue for a while yet, the tech start-up community is faring pretty well.
Sure there is less money to go around from seed investors and angels, but perhaps fewer start-ups need their cash to get their ventures off the ground.
Talking to folks at this week’s Geek n Rolla event by TechCrunch Europe, start-ups are enjoying lower costs of entry.
For example, there’s now an available and willing pool of labour thats looking for work, and at rates that are lower than pre-recession. That means tech start-ups may be able to finance labour costs without the help of a backer.
Office rents and other overheads have also come down in value. The financial barriers to entry are far less, this means that start-ups may be able to go it alone, particularly if they have capital to invest, or seek more traditional routes of finance, if and its a big if, the banks are lending.
We discussed these issues with TechCrunch Euope’s editor Mike Butcher in a video interview…see below for more