Minister for Business and Enterprise Mark Prisk posted the following question on LinkedIn:
“The Government has announced plans to help small and medium sized businesses access finance, secure new contracts and help drive growth. What are the barriers holding back your business that Government could help remove?”
At the time of writing there has been over 100 replies. I believe that a problem arises where small businesses are perceived as too risky for bank finance and where growth prospects are not “sexy” enough to attract Angel investment. These businesses have potential but find it difficult to attract funding. I raised this in my response to Mr Prisk (see link below). I was pleased to receive the following response:
Much more on SME finance is needed, over and above what we have been able to announce so far. The Government is looking at debt finance, equity options especially around micros; seeing how we can broaden the angel market; and also looking at how we can help exporters. We hope to say more shortly on several of these issues.
Mark Prisk MP”
Well as far as I am concerned, the proof of the pudding is in the eating and in my view impending tax rises and Government spending cuts mean that nourishment is needed soon.
One part of solving a problem is recognition of its existence so in that respect Mr Prisk’s response is welcome. We’ll have to wait and see what the pudding will be like, hopefully it will be something wholesome like bread pudding as a opposed to something insignificant like petit four!