Unlocking the Potential of Entrepreneurship Through Acquisition

In the latest episode of Founders Unplugged, I had the pleasure of sitting down with Gareth Hawkins, co-founder of BizCrunch, to delve into a topic that is both timely and critical: Entrepreneurship Through Acquisition (ETA). As someone deeply embedded in the entrepreneurial ecosystem, I find this subject not only fascinating but essential for the future of business in the UK.

Watch Part One here:

The Untapped Potential of ETA

Entrepreneurship through acquisition is a model that has been thriving in the United States for decades, yet it remains relatively underexplored in the UK. This approach involves acquiring established businesses rather than starting from scratch, offering a viable path for aspiring entrepreneurs who may not have the resources or appetite for the traditional startup route.

Gareth's insights into this model were illuminating. He explained how ETA can serve as a solution to the looming "silver tsunami"—the wave of baby boomer business owners looking to retire without a clear succession plan. With approximately 300,000 UK businesses needing to change hands and only about 2,000 SMBs doing so annually, the opportunity for acquisition is vast and largely untapped.

Overcoming Barriers

One of the major hurdles in promoting ETA in the UK has been the lack of awareness and institutional support. Unlike the US, where business schools have long offered courses on ETA, the UK is just beginning to incorporate this into academic curricula. However, as Gareth pointed out, schools like Cambridge Judge Business School and London Business School are starting to introduce electives focused on acquisition entrepreneurship, which is a promising development.

Moreover, the recent introduction of the Growth Guarantee Scheme by the British Business Bank is a significant step forward. This scheme mirrors the US Small Business Administration's loan programs, providing government-backed loans that make it easier for entrepreneurs to acquire businesses with minimal personal capital.

The Role of BizCrunch

Gareth's company, BizCrunch, plays a crucial role in facilitating ETA by providing tools and resources that streamline the acquisition process. Their platform helps identify potential acquisition targets, assess their financial viability, and connect buyers with sellers. This kind of innovation is essential for reducing the time and cost associated with acquisitions, making the process more accessible to a broader range of entrepreneurs.

A Call to Action

As we discussed in the episode, there is a pressing need to raise awareness about ETA and its benefits. Business schools, policymakers, and industry leaders must collaborate to create a supportive ecosystem that encourages acquisition entrepreneurship. This includes providing education, financial support, and platforms like BizCrunch that simplify the acquisition process.

For those interested in exploring ETA, I highly recommend tuning into this episode of Founders Unplugged. Gareth's journey and insights offer a compelling case for why more entrepreneurs should consider this path. As we navigate the challenges of succession planning and economic growth, entrepreneurship through acquisition presents a promising avenue for innovation and sustainability.

Watch Part Two here: