Finance for Enterprise

Deja Vu for the Access to Finance Scene

2012-02-12T05:08:00.001-08:00

Why do I get the feeling that we have been here before in the arena of access to finance for small businesses?
The number of evaluations, consultations, reports, seminars and task forces in progress must be creating some much-sought-after growth in itself, but is all the activity and investigation really getting us any closer to boosting the wider UK economy and creating jobs?

I have lately sat back and wondered just exactly how, in these changing and challenging economic times, the words and reports are going to be used. Will they just sit on a shelf gathering dust, as has often been the case in the past, or only be available for the Google addicts, academics and consultants who in years to come will use them to write yet another report based upon the their findings, which were not acted on in the first place?
The latest twist in this saga is that the new Local Enterprise Partnerships are all taking stock of what is around already and gathering information from national sources, local knowledge and the internet.

It will be interesting to see how the new national portals, such as Business Link, manage to pick up on all this local information and keep their sites up to date.
The one report I am looking forward to reading is the national taskforce recommendations, expected prior to the budget next month, on sources of what is now being described as ‘non-bank lending’. The challenge will be seen in the months ahead in the action taken. I am hoping that the taskforce does not undertake a review that concentrates on larger businesses and will mean little to the vast majority of small and medium size businesses in the UK.

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Are Businesses Too Busy To Look For The Help They Need?

2012-01-23T10:00:00.003-08:00

As a judge in three recent local competitions seeking to support potential growth enterprises in the West Midlands, I was delighted to see the enthusiasm and pride of the entrants in their businesses. We were presented with some interesting ideas and plans.

What did surprise me was the number of entrants overall. Why didn’t more businesses apply? I suspect that many enterprises who would have welcomed the support on offer did not even get to know about the opportunity.
As in business life in general, those who had found the time to stand back from day to day activities, look around and take the initiative were almost certainly rewarded by at least having the opportunity to compete.

It was clear that while many of the entrants fully recognised the need for marketing, business and mentoring support to achieve their growth plans, many were also unaware of where they could turn for help. This certainly led to healthy discussions as to what is currently available.

The challenge, even more so than in the past, facing all business support partners - public and private sector, new and long established - is to reach the businesses that need their services.

In the case of finance for small businesses we might be reaching the position where supply can meet demand; the issue is becoming one of communication and of introducing businesses in need of finance to the appropriate providers – which could be a combination of sources. Banks must improve their own knowledge in signposting to others, especially where they are unable to fully meet the needs of a business.

Whilst the providers have their part to play in planning communications campaigns that utilise a wide range of communications channels, entrepreneurs themselves need to keep their eyes and ears open to take full advantage of the help and assistance that is available to them.

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British Bankers Association Roadshow Is Like The Curate's Egg.......

2011-10-27T08:11:00.004-07:00

What a strange event the British Bankers Roadshow was. I took the chance to visit when it came to Birmingham recently.

Firstly, on the predictable side: ‘the banks are all open for business’ was the united cry - from the trade body (the British Bankers Association) and the senior bankers from ALL the major banks. Some members of the audience, though, had their doubts. There were several small businesses present (a smaller proportion of the audience than might have been expected) who were keen to establish that they had not been helped and were happy to let fly with their stories.

Less predictable - and I imagine a little irritating for the bankers and Angela Knight (Chief Executive of the British Bankers Association) - was a 20 minute keynote speech/story from a successful local business, which we were told had succeeded without at any time using bank support. What a strange own-goal for the bankers and local organisers!

What really struck a chord with me though was the fact that all the banks did attend - a very rare event. And they all stated that they would welcome the opportunity to work together. This is certainly in line with the proposals of the recent taskforce - especially on areas such as signposting, transparency and educating small businesses about what they can expect from a bank and what the banks will expect from them if they seek to borrow.

But I wonder whether expecting the banks to work together is just too ambitious a target. Certainly in the week after the Roadshow two banks decided not to attend an ‘access to finance’ event organised by the West Midlands ICEAW (Institute of Chartered Accountants in England and Wales), the accountants trade body. Surely not a good move if you want to demonstrate that you are open for business? Could it be that the banks are worried that they run the risk of being accused of not being competitive if they co-operate too closely? Now there’s a kind thought to end on.

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