Brexit marks make-or-break moment for small business finance
Mike Cherry, national chairman of the Federation of Small Businesses, has responded to the launch of a new British Business Bank report entitled The Benefits of Diverse Finance Markets for Smaller Businesses.
He commented: “This report underscores both the over-reliance of small businesses on traditional bank products and the vital role that the European Investment Fund has played in supporting UK entrepreneurs in partnership with the BBB.
“Traditional bank products will not be right for every small business – that’s why the BBB’s work in promoting access to a variety of finance is so critical. Something has to change when only one in 10 small firms is applying for credit and four in 10 applications are rejected. We urgently need to increase the tiny proportion of firms that are seeking equity finance across the UK while supporting growth finance in all its forms.
“Brexit marks a make-or-break moment for small business access to finance across the UK. The EIF has contributed a staggering €2.3bn to small business finance markets in the five years to 2015 alone. That support must be replaced without any cherry-picking of particular funding streams.”