ISSUES holding back the growth of small firms are being tackled in a Parliamentary probe.
The Entrepreneurship Inquiry, organised by the All Party Parliamentary Small Business Group, opened its proceedings by looking at why women and older people are less likely to apply for bank finance. The continued difficulties faced by small firms seeking access to credit was also on the first evidence session’s agenda.
Maxine Benson, co-founder of business network everywoman, said: “It is an economic imperative that we see an increase in the number of women- owned businesses in the UK.
“Our research has shown that for many women a lack of confidence, access to finance and role models can prevent them from realising their full potential as entrepreneurs.
“We believe that cost-effective skills training, confidence-building and access to networks would encourage and enable more women to start and grow businesses.”
Both women and older entrepreneurs tend to see access to finance as a problem and are less willing to take on the debt than young, male business- starters.
The inquiry is looking at ways to tackle this with the aim of making more people confident about approaching the banks for credit.
Nick Bunting, chef executive of Prime (Prince’s Initiative for Mature Enterprise), said: “Mature entrepreneurs are often overlooked and supporting them into enterprise can contribute to helping to resolve unemployment, provide enhanced income, opportunities for engagement as well as the prevention of social exclusion.”
Even approaching the bank is not an option for some people who have a business idea that needs finance to get off the ground.
Federation of Small Businesses (FSB) chairman John Walker said: “While alternative forms of finance need to be promoted, this needs to change and confidence needs to be instilled in all sectors of society so that they know bank finance is a real option.
“The Entrepreneurship Inquiry gives us a chance to discuss the barriers that the UK’s small firms face and come up with good, practical solutions to help ease the burden. We look forward to seeing the results of this later.”
The All Party Parliamentary Small Business Group is chaired by Brian Binley. He said it was essential the Government recognised the pressures which are making life difficult for those starting up and developing small businesses.
He said: “I want new small businesses to be relieved from the disproportionate burden which many regulations place upon them and whose impact is especially harsh during the early period of their development.
“The Government must be prepared to act to enable growth to occur – which requires small and medium- sized enterprises to feel confident and consumers to start spending.”
