New proposals to help Britain’s five million small businesses grow have been announced today by the government.
Small business minister Mark Prisk hosted a Summit for Small Business, which set out policies to improve access to finance for small firms, to make it easier for them to do business with the public sector and allow social tenants to start up their own enterprise from home.
Speaking at the summit, business secretary Vince Cable revealed plans to continue with the Enterprise Finance Guarantee scheme for the next four years, making around £2bn available to viable small companies, which he said would provide support to 6,000 small and medium enterprises a year.
Cable also announced that the government would commit a further £200m to Enterprise Capital Funds supporting equity investments in high growth potential businesses. Furthermore, he said the government wanted to encourage business angel investment by welcoming co-investment between business angels and the government’s small and medium business investment arm, Capital for Enterprise.
Cable said: “Small businesses are critical for growth in this country. But to expand they need access to a range of finance options. The government is doing its part by supporting a further £2bn of bank lending through the popular Enterprise Finance Guarantee which will provide real help to viable small companies looking to grow.”
Minister for the Cabinet Office, Francis Maude, unveiled plans to make it easier for small businesses to procure contracts with the public sector; by working with departments to ensure they are increasing their rate of small and medium enterprise procurement each year, and by removing barriers that prevent small businesses accessing government contracts. He said: “We are committed to making it easier for these organisations to compete for government business.
“Today’s package of measures announced by the Cabinet Office will help to remove the barriers many small businesses face and eliminate complexities and waste in the procurement process. They will also ensure we are on our way to hitting our aspiration that 25% of government contracts go to small and medium enterprises.”
During the summit the government also announced plans to help social tenants to start up businesses at home, by removing any barriers and working with social landlords to encourage their tenants to develop entrepreneurial skills.
Housing minister Grant Shapps said: “Tenants should have the same opportunities as anyone else, and landlords have the key to unlocking this untapped entrepreneurial talent.
“I want them to get the message out loud and clear to their residents that wherever possible, and in the majority of cases, they will be able to set up and run their new businesses from home.”
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