Dragon’s Den star Theo Paphitis urges more start-ups

Jan 25 2010 by Henryk Zientek, Huddersfield Daily Examiner

DRAGON’S Den star Theo Paphitis has delivered an upbeat message for Huddersfield’s would-be entrepreneurs.

The tycoon, who is backing a new-style business degree at Huddersfield University, claimed 2010 could be the best time in a long time to start a new business.

Theo said small and medium-sized enterprises held the key to overcoming the recession.

“Tough times build tough businesses,” he said. “There are almost five million SMEs in the UK and they represent a whacking 58% of the private-sector workforce.

“They are pulling this country out of recession by providing jobs. By giving people work, they put money into households. SMEs are the engine room of the British economy.”

Theo has spoken to thousands of Yorkshire students to enthuse them about business and to promote the university’s BA Honours degree in Enterprise Development.

The new degree allows students to set up and grow a real business while studying for a qualification.

As well as appearing on Dragon’s Den, the self-made millionaire chairs high street stationary business Ryman and also has business interests in Movie Media Sports and the Contessa and La Senza lingerie chains.

He said: “I did have a dark, very depressing, but enlightening and educational period in my life when I was out of work for a few months.

“The business I was involved in got rid of me. That experience gave me the strength to go out there and do it for myself.”

Speaking in an interview for Government export support arm UK Trade & Investment, Theo admitted: “There’s no getting away from it – times are tough right now. But I don’t believe that’s a reason to be downhearted.

“If you can make it now, you will thrive when things get better.

“Despite what some say, Britain is a great place to be. We’re a nation of entrepreneurs and it makes me proud to be among their ranks.”

Theo said Ryman had coped with the recession – thanks in part to the willingness of staff to make sacrifices.

He said the company had seen the recession coming and was able to avoid making redundancies.

However, head office and senior staff were asked to volunteer for a pay cut – with the promise that if budgets were met, they would get that money back as well as a retrospective pay rise.

“It looks like we are going to give people that money quite easily,” said Theo. “I am so proud of the work everyone has down because they have put their heads down and dealt with the difficulties of the economic climate.”