Summit for Small Business

The government seems surprisingly willing to chat up the importance of small business and small business growth since the appearance of the Business Minister at a Summit for Small Business.  The purpose of the summit was to discuss how the government would help the 5 million small sized businesses of the UK grow beyond the recession.

It was brought out at the summit that the government has been ignoring or overlooking the essential role of small business in the recovery from the recession and that far too little has been done to help small business in this country grow.

It was further defined that Small and Medium-sized Enterprises (SMEs) 60 per cent of the jobs and half of the UK’s GDP. The government was prodded for the role it might play in helping the 60 per cent of SMEs that have expressed a wish to grow.

Taking that cue, the Business Minister announced that BIS (Department for Business Innovation and Skills) had developed three policies that are designed to help SMEs access to public sector business, improve the availability of finance, and let social tenants start up home businesses.

A specific advancement in the area of finance for SMEs was that the government intends to continue the Enterprise Finance Guarantee four more years, which should free up around £2 billion for about 6000 workable small businesses without collateral or credit history.

It was further reported that the government wishes to commit another £200 million for Enterprise Capital Funds that support investment in high potential businesses.