Could the Government help your Small Business grow?
David Cameron recently announced a new “Help to Grow” scheme will come into practice, which will pledge to help 500 of the UKs fastest growing firms to expand further. This pilot scheme will be launched in March, with £100m set aside to help Britain’s businesses grow.
David Cameron went on to say the money will “help guarantee loans by private lenders or by co-investing public money alongside private money”. He went on to suggest that this could enable Britain to have a backbone of medium-sized firms which export, innovate and generate new jobs.
Joining in with discussion about the scheme, Stephen Ibbotson, director of business at ICAEW, said it could “boost business growth across the country”, but steps must be made to give firms the “right kind of advice to ensure that those businesses are finance-ready”.
He went on to say “the fear for any fast-growing company is losing control. The right kind of advice will dispel the notion that giving up equity means giving up control, and it is imperative that the Help to Grow pilot recognises this”.
Also commenting on the Help to Grow scheme, John Longworth, director general of the BCC, said “businesses need to be confident that finance is available in order to grow – and crucially, to export. They need to be confident that working capital is available if they are to take on new orders, fulfil them and grow – and not fear going bust at the very moment of expansion.
“Long-term, patient, loan capital is what makes fast-growing small companies into the home-grown, mid-sized champions of the future. Without it, too many are forced to sell out and lose control eventually and all too often to disappear into the clutches of multinationals.”
What are your thoughts on this scheme? Join in the conversation!