Small businesses to miss out on credit easing benefits, say entrepreneurs

Two thirds of business owners believe that the new National Loan Guarantee Scheme will not benefit the UK’s smallest companies, research by BusinessZone.co.uk and AccountingWEB.co.uk shows.

In a snap poll of the 150 people who took part in a live blog of George Osborne’s Autumn Statement on the two online communities, 64% predicted that the ‘S’ part of ‘SME’ will not be able to access funding through the government’s new credit easing efforts.

The remaining 36% believed they will benefit.

Commenting on the findings, Dan Martin, editor of BusinessZone.co.uk, says: “As the National Loan Guarantee Scheme applies to companies with a turnover of up to £50m, it’s perhaps not surprising that most entrepreneurs are sceptical about the benefits.

“Given the state of the economy and the fact that small businesses are crucial to its recovery, it’s vital that the measures that the government says are for the benefit of start-ups and small businesses really are for the benefit of start-ups and small businesses.

“Saying that you’re going to open up £40bn of bank loans to companies makes for a good headline but it will mean nothing if the companies that need it most don’t get access.”

Editor’s notes

BusinessZone.co.uk , published by Sift Media, is a leading online publication for entrepreneurs providing free, practical and no-nonsense advice on how to start and grow a successful business. Its sister community is UK Business Forums, the UK’s most active online forums for entrepreneurs.

Also published by Sift Media, AccountingWEB.co.uk is the largest independent online community for accounting and finance professionals in the UK. It provides award-winning content and online engagement between members in a true community environment.

For more information, contact Dan Martin on dan.martin@businesszone.co.uk or 0117 915 8638.