Business Secretary Vince Cable has launched a funding campaign in a bid to help the UK’s some 4.9 million small firms to develop.
Earlier this month, Mr Cable unveiled the first ‘funding allocation’ from the British Business Bank’s investment programme, which is designed to supply debt finance to small businesses.
The first £45 million of subsidy is to be divided between two private investment firms: £30 million to Praesidian Capital Europe and the further £15 million to BMS Finance, which will generate around £125 million of debt finance through their respective new funds. Upon legal agreement, both funds are expected to start lending to small businesses in early 2014.
The multi-faceted campaign also comprises other measures designed to support small businesses. These include:
- A £10 million synthetic biology start up fund from the Biotechnology and Biological Science Research Council (BBSRC) to help entrepreneurial scientists working in synthetic biology get their business off the ground
- A new £1 million Sector Mentoring Challenge Fund, intended to offer small firm’s the benefit of advice and support from experienced people within their sector
- The Growth Accelerator scheme – a successful, specialised coaching service, designed to help small businesses with a high-growth potential, which, to date, has helped 10,000 firms.
Mr Cable commented: “We have set out a comprehensive package of measures that will address the concerns of small firms. The first investments from the British Business Bank’s investment programme will provide choice to smaller businesses looking to secure vital finance to help invest. Alongside cutting red tape and increasing the take up of business rate relief, government has already made significant progress in improving the business outlook for small firms and entrepreneurs.”
Providing the tools for small firms to build their business upon is a vital scheme the government needs to be backing in order to ensure the swift recovery of the economy. In December a cross-government strategy on small business support will be published, intended to help encourage the access of finance, exportation and innovation.
Skills and Enterprise Minister, Matthew Hancock said: “Small firms are a vital driver of our economy’s success, so it is imperative we do all we can to ensure businesses don’t just survive, but thrive in a global race.”