The employees of a company should feel why their work is valued and considered by the entrepreneur.
A study by World At Work has shown the five considerations from the perspective of the employees are the most important to feel properly motivated within a business … your business has an incentive policy that takes into account these results?
Look at the results of this study regarding the five major factors that employers believe are necessary to be motivated within a company:
To develop their career
2. Salary increases based on merit.
3. A salary or basic pay.
4. Non financial character recognition.
5. Training programs and training.
Which of these 5 aspects have included in the policy of incentives your company?
Those days have come through the press some information on the measures that the Government could take to encourage entrepreneurship in Spain. Last week we talked about the possibility for self-employed in multiple jobs to pay only half the price of self- s, and yesterday was the focus on the protection of entrepreneurs in the event of failure .
I think it’s a good time to review what happens in Spain and give some recommendations on what should be done to be really efficient with the law of the entrepreneur.
1 – Stop giving aid, but mostly to stop obstructing
Helps entrepreneurs are focused almost exclusively people entitled to unemployment benefit. The others have no right to practically nothing. But this injustice is not the root of the problem. The reality is that it is very expensive and very slow start a business in Spain.
No point having to pay € 254 a month Social Security contributions when possible for months (even years) the business is losing money. Neither makes sense to put hundreds of standards at all levels (licenses of all kinds), when in reality many are not met.
The solution: to create a company providing practically free (remove expenditure records, notaries, reduce the minimum capital to 1 €), and not charge the contribution to the self during the first two years it so long as no major benefits to a certain threshold. At the same time simplifying municipal regulations on licensing of premises and apply the same rules for all (can not be that a new business rather than having to meet an old one).
It is best left to enter for a few months some taxes and allow the creation of wealth, to pay refundable grants that end up serving largely to pay these same taxes.
2 – Providing credit to businesses and limit credit to households
If any lesson we must draw from this crisis is that an economy based on household consumption financed credit is doomed to failure. The credit is only meaningful if it serves to generate productivity and wealth. And that is giving to those who will invest money in improving their production capacity, especially businesses.
In this country, sometimes things work in reverse. There are tax deductions in income tax for people buying their house on credit, but there is no deduction if you pay the house with the savings. That is, the philosophy is to promote public money unproductive indebtedness. The property does not generate wealth. When price rises more than the CPI frequently is just speculation and falling.
What is needed is to encourage credit for business projects, and set strict rules for consumer credit and even mortgages, and of course remove any tax deduction that encourages family debt.
3 – Having the right to fail
The positive aspect of the latest announcement by the Government on the inability to fully seize the assets of the self that they are bankrupt is beginning to guide the debate towards the right to fail.
That is very important. Entrepreneurship is risk, and therefore often not things turn out. But the failure, although not desirable, is a source of great learning. People who have suffered a setback in general have also learned a lesson and would therefore be best entrepreneurs in a new project.
If our society condemns those who do not succeed on the first try, we can expect little. Then it is normal that people prefer to be employees or officials. You have to change the minds and show that failure is not bad. It is part of life, and how important it is to overcome.
4 – Strengthen the Treasury
Finally, you can not forget one fundamental aspect: control. In Spain usually have strict laws because many people have little law abiding, and both phenomena are fed. In large part, what I propose is to simplify the rules, but this also involves enhancing the control.
Today, the stakes are so high that few would be met, but those who do not comply they risk not much because they often lack control. I think you have to reverse the process. Giving many more means to finance to pursue all types of fraud (corporate and individuals), in exchange for simplifying processes.
Let’s make things easy for entrepreneurs, but we will also severely punish those who want to take advantage of these facilities for personal gain and against public interest.