The government has said that its White Paper on enterprise is designed to help make the UK the most enterprising economy in the world.
Published as part of the Budget, the White Paper, entitled Enterprise: Unlocking the UK's Talent, offers a ten-year strategy for developing business growth.
As well as making it easier for smaller businesses to access funding, the Paper promises to ease the burden of regulation.
Among the package of measures, the strategy will see a 20 per cent increase in the Small Firms Loan Guarantee Scheme, with eligibility extending to businesses that are more than five years old. The Scheme enables small firms, without assets to offer as security, to take out loans and find funding.
The government will commit £12.5 million to a £25 million capital fund for investing in women-led businesses.
There is also to be £30 million of support for mezzanine finance provision through Enterprise Capital Funds.
Two reviews are planned. One will examine ways in which small businesses can be helped to comply with regulations, concentrating initially on employment law. The other will look at the barriers SMEs encounter when pitching for government contracts, the aim being to study the practicality of hitting a target whereby smaller firms win 30 per cent of government projects.
Also planned is a consultation on the introduction of a new system of regulatory budgets for government departments that would set out the cost of new regulation in a given period. This would provide small businesses with a greater degree of certainty over costs.
John Hutton, the Business and Enterprise Secretary, said: “We want more new and growing businesses in the UK and more companies and people acting on their enterprising ideas. The UK’s long term prosperity lies in unlocking the talent of enterprise for people from all sections of society and in our small businesses, helping them to grow.”
Business groups welcomed the proposals.
Sally Low, director of policy and external affairs at the British Chambers of Commerce, said: “The government has made some strong commitments: to introduce regulatory budgets; to hasten regulatory culture change by firmly embedding the ‘think small first’ principle into government policy; and to increase investment to boost access to finance, which could help growing, ambitious firms to become bigger and better.
Steve Radley, the EEF’s chief economist, said: “The innovative package of measures to improve access to finance will give small and growing businesses greater flexibility in attracting the funds they need to invest in innovation and growth. This comes an especially opportune time given the current credit crunch.”
Date:13 March 2008
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