The business bank is one of the new government developments aiming to improve life for the country’s small businesses. Results from an independent study by the Open University show there is strong support for the Business Bank, with almost half of respondents expecting it to help them invest further in their business. This is great news – so what exactly so SMEs think about this latest government measure?
Over 1,000 SMEs were asked, ‘Do SME owners and managers think that the proposed British Business Bank is likely to help firms in their industry sector to increase levels of investment in their business?’
In response to this, SMEs said:
- 48% expressed positive sentiments about the proposed Bank.
- 30% said they didn’t feel the bank would be likely to help their industry in the near future.
- 22% were unsure of the benefits they were expecting.
SMEs were also asked, ‘What do SME owners and managers see as the key priorities for the Business Bank if it is to benefit small and medium sized firms?’
The top priorities from the survey were:
- 64% felt that adequate access to finance during tough economic times was all important for improving the economy and small business sector
- 60% believed that longer term access to finance was a priority, for example banks offering 10 year loans
- 59% highlighted government support so that commercial providers can lend easily or more cheaply
This survey has brought up some interesting points. However, it’s good news that so many of the SMEs interviewed were positive about the effects the initiative could have on their business. With the business bank hopefully getting off the ground in the near future and the increasing availability of alternative finance, such as invoice factoring, hopefully 2013 will see many SMEs with the opportunity to invest in their businesses in order to secure growth in the coming year.