This week, Axis for Business discovered that UK Chancellor George Osborne used the yearly Autumn Statement to announce the initiation of a package of measures designed to aid SMEs.
With One Stroke
Because Axis for Business listens to what our customers say to ensure we supply cost effective energy and telecoms services to SMEs in the UK, we understand the role of government in facilitating growth.
With the responsibility of safeguarding economic prosperity, with one stroke of the pen the government can initiate policies which provide SMEs the climate they need to boost profit margins. The latest stroke of Osborne’s pen could prove extremely beneficial to small businesses throughout the UK.
A Cash Injection for SMEs
This week, the BBC reported that Osborne announced in the government’s Autumn Statement that it’s decided to invest £400 million into Enterprise Capital Funds. These are government-backed venture capital funds that invest in small businesses.
Meanwhile, Whitehall also announced in the yearly budget that it’s decided to guarantee up to £500 million in new lending funds to small businesses. Furthermore, the Funding for Lending (FLS) scheme – which is designed to increase the rate at which banks lend to SMEs – has been extended into 2015.
Time to Focus on Small Businesses
According to the publication, the new schemes are to be managed by the British Business bank, which was established by Vince Cable in 2013.
Whilst announcing the new measures, Osborne said: "Now that credit conditions for households and large businesses have improved, it is right that we focus the scheme's firepower on small businesses, which are the lifeblood of our economy."
The Lifeblood of the British Economy
Osborne makes a valid point. SMEs are the lifeblood of the British economy – this country needs them to stay in the red. Therefore, the government needs to use its power over economic affairs to ensure small business economic growth at every turn.