Small businesses can herald large-scale recovery
Tom Papworth suggests equity capital for small businesses with a high-growth potential, as a means to reshape the economy.
In early March, we had another round of the get-the-banks-lending saga, following the publication of disappointing figures for the Funding for Lending scheme. Policymakers are understandably concerned that entrepreneurs should be able to access capital to invest in staff and equipment, and so grow their businesses. The industry taskforce set up under Tim Breedon estimated that industry faced a funding gap of up to £191bn over five years.
But relying on bank lending to close this gap is neither necessary nor wise. As a report published by CentreForum argues, ‘The path to IPO [initial public offering]: funding SME jobs and growth’, the priority should be to encourage a greater use of equity capital, especially by small and medium enterprises (SMEs)...
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Ethosis aimed at public sector leaders, politicians, academics and policy specialists debating the future of public services today.
