"Financing projects from £50,000 to £100 million"

Federation of Small Businesses wants greater competition

Federation of Small Businesses wants greater competition

The Federation of Small Businesses (FSB) wants to see greater competition in the banking industry to support UK enterprise.

The FSB said it was hopeful that the Government’s Business Bank would improve the investment prospects for small- and medium-sized businesses, but added that current conditions were heaping pressure on the new bank to “get it right” from the beginning.

Its recent submission to the Chancellor’s Spending Review, which will take place later this month, suggested that the Business Bank remain separate from government, “with its own source of funding.”

It added that it hoped to see a more sweeping reform of the UK’s enterprise support network, which currently has more than 800 grant schemes available for eligible small firms.

A recent study from the Big Innovation Centre found that innovative enterprises had struggled to gain access to finance since the financial crisis, while tried and tested firms were considered lower risk and therefore had greater chances of success in an application (read more).

John Allan, the national chairman of the FSB, said that the new Business Bank could solve many of the leftover problems for British small businesses, but that confidence in it would only be garnered if it set out its aims and its funding sources clearly.

“What the FSB would like to see is a long-term plan for how the Business Bank will be funded to ensure it remains independent, and for the current ‘alphabet soup' of government initiatives tidied up to create a much more focused offering,” he said.

"With firms struggling to access finance, reforming the business support landscape and putting all funding in one place would make support clearer for small firms, help delivery and improve the environment in which they operate."

Wednesday, 12 June 2013 13:17
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