Stable financial backing for SMES is crucial
Martin McTague, Policy Director at the Federation of Small Businesses discusses access to finance and why it is no longer at the top of the ‘concerns’ list but is still a key area that needs attention post Brexit.
If you’d asked me a question about access to finance a few months ago, maybe a year ago, that would have topped any list of small business concerns.
Over the last year it has probably dropped down below other areas, particularly skills, as a significant area of concern. Access to finance now will determine how well we get through this next few challenging months, especially since the decision to leave the European Union. It is vitally important that stable financial backing is put in place for a lot of our small businesses in the UK.
One of the areas that we’ve been weak on in the past is equity finance. There’s plenty of debt available at the moment, but equity finance for small businesses is still pretty limited and a lot of the finance available, especially in the north of England, is dependent on EU funds. So something will need to be done about that position quite quickly.
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