When asked by the Government how to increase the capital funding of SME’s, Chris Rowlands stated that any measures will need to be taken on a large and significant scale.
According to Rowlands, who is the former chairman of the Asian operation of 3i, in order to fix the market failure of SMEs the industry will need to complete a massive overhaul.
Rowlands was appointed in the summer of 2009 to look into how government intervention could help provide more funding options for SMEs, which are currently having problems receiving finance options for growth.
The finished review is expected to be released by Chancellor Alistair Darling during November, or at the latest in December during the Pre-Budget Report. In particular the report is focused on companies that are seeking finance to grow their businesses in the bracket of £2m to £10m.
In order to back the report Rowlands has worked with large bodies such as the British Venture Capital Association and the CBI, as well as funding agents like Finance Wales and SMEs.
Rowlands reported that during the recession it is easy to see that SMEs have a much harder time finding financing, and added that there is a general consensus that when the recession ends SMEs will still have trouble initially receiving finance.