A number of initiatives to help the UK’s five million small firms have been unveiled by the Government. It is hoped that the cross party range of measures will help small firms to access finance, make it easier for them to carry out business with the public sector, and allow social tenants to start up businesses from their homes.
“These measures will ensure stable financial conditions for business, a more competitive and transparent banking system and access to a more diverse range of sources of finance that suits their needs,” said George Osborne, Chancellor of the Exchequer.
As well as announcing the continuation of the Enterprise Finance Guarantee (EFG) scheme and a further £200 million to Enterprise Capital Funds, the Government has also said that in order to encourage business angel investments it will welcome the joint bid of business angels and the Government’s SME investment arm, Capital for Enterprise.
Business Secretary Vince Cable said: “Small businesses are critical for growth in this country. The Government is doing its part by supporting a further £2 billion of bank lending through the popular Enterprise Finance Guarantee which will provide real help to viable small companies looking to grow. Now we need the banks to play their part and increase normal commercial lending to get the economy growing.”