A range of measures is set to give the UK’s small businesses greater ease when dealing with other companies.
The changes will make it simpler for small firms to provide services for the public sector and reduce the difficulties they face in gaining access to finance.
In addition, people looking to start up their own business from home will see changes that aid their efforts and facilitate their decisions, allowing the government to demonstrate their ”entrepreneurial decade.”
The adjustments were announced by Vince Cable (Business Secretary), Mark Prisk (Business Minister), Francis Maude (Cabinet Office Minister) and Lord Young (Enterprise Tsar).
New businesses will be pleased to hear the announcements, as the Enterprise Finance Guarantee (EFG) Scheme will remain in place for a further four years, with 75% of of the business’ bank loan guaranteed by the government, and the remaining 25% guaranteed by the bank.
An additional £2bn will be pumped into the EFG scheme following the success achieved since its implementation by the former labour government.
Chairman for small business at Royal Bank of Scotland, Peter Ibbetson, is pleased by the progress and ”warmly welcomed the decision to extend EFG”.
“This scheme is hugely important to wider efforts to ensure small businesses get the support they need,” Mr Ibbetson added.
Enterprise Capital Funds will also be boosted when the government pump in an extra £200m, which will allow companies to exchange debt for a stake in their business.
Qualification barriers that prevent small businesses from being granted government contracts will also be scrapped under the new plans, helping small, private companies to compete on a fairer playing field.
Those companies that are granted government contracts will be compelled to pay all their suppliers within 30 days.
Social landlords can also expect greater cooperation from the government, and look ”to tackle the misconception that social tenants cannot start up a business.”
Mark Prisk, Business and Enterprise minister revealed: ”As a former small business owner I know how important our SMEs [small and medium-sized enterprises] are to the growth of this country.
“I entered government with the goal of making this the most entrepreneurial decade in our history, and I’m confident today’s announcements will make that a reality.”
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