Entrepreneurs need freedom says private equity boss

With entrepreneurs increasingly turning to private equity in their quest for business finance, business funders are being warned that dealing with new businesses are a entirely different game in comparison with funding the corporate sector. Entrepreneurs need freedom to implement their strategies and ideas in the entrepreneurial way. The countries economy and ongoing recovery of this depends on a more entrepreneurial way of conducting business. So from a private equity investor point of view its important that the business plan and strategies of the entrepreneurs is respected. Yes of course you can comment, make amendments and add your expertise but don't try to dominate entirely as this will end up driving entrepreneurs away.

In his recent role as boss of the private equity industry's trade body, BVCA, Kolade suffered a roasting by the Treasury Select Committee when he tried to defend the sector against accusations of entrepreneurial ventures and the greed that often may go allong with this, asset stripping and loading some of the finest names in corporate Britain with insupportable levels of debt.

Though seen as one of the 'good guys' of private equity, Kolade was turned over by the Press and public outings became tests of endurance.

Now safely back as managing partner of ISIS Equity Partners, specialising in small to mid-sized investments, Kolade is reserving his skills as an eloquent and polished speaker strictly for rather more cerebral university audiences (he is a governor of the London School of Economics).

But with the looming General Election and a sense that an incoming government will launch an emergency Budget, Kolade is venturing back into the spotlight.

'None of them seems to realise how important entrepreneurs are to this country,' he says.
'Big business isn't going to be the backbone of recovery - they employ comparatively few people and can always shift their assets overseas. It is the smaller entrepreneurial businesses that will create the jobs and the growth that we need.'

But Kolade, 43, thinks he is already seeing a queue of entrepreneurs wanting to sell up rather than expand because they fear a huge rise in capital gains tax from 18%.

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