Lord Sugar has said that the majority of struggling bosses are “moaners” whose businesses don’t deserve support and that some companies should be allowed to go bust.
The 62-year old Apprentice star said that of the companies he has spoken to in his role as the government’s Enterprise Champion, there were good reasons why banks had not lent them money in 85% of cases.
He said: “The moaners are bust. They are bust and they don’t need the bank - they need an insolvency practitioner.”
Speaking to an audience of small business owners at an event in Manchester, Lord Sugar attacked companies that blame their cashflow problems on banks.
“I hate the use of this word cashflow in the sense in that it is a business problem. Banks are there to do business. Anyone who says they are not is wrong,” he said.
“I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn’t lend a penny to.”
He added that “younger people” who were used to the way the banks lent during the last 10 years “lived in the unrealistic Disneyworld in the way banks dished out money”.
Phil Orford, chief executive of the Forum of Private Business (FPB), said Lord Sugar’s remarks were “misguided” and showed a “worryingly dismissive” attitude to small firms.
He said: “Sir Alan’s comments were quite insensitive and completely erroneous on several points.
“Perhaps his £700m fortune has dulled his memories of running a small firm and lessened his understanding of the very people the government hired him to represent.”
© Crimson Business Ltd. 2009