Iain Moffatt, head of KPMG Enterprise, comments on the Chancellor George Osborne’s plans to deliver a £1bn boost to Britain’s small and medium-sized businesses.
Commenting on the Chancellor George Osborne’s plans to deliver a £1bn boost to Britain’s small and medium-sized businesses through additional funding for the British Business Bank and the Enterprise Finance Guarantee scheme, Iain Moffatt, head of KPMG Enterprise, said:
“While any boost to initiatives which help small companies access the funding they need to grow should be applauded, a general loosening of bank purse strings over the last 12 to 18 months, coupled with the support available from the likes of the British Business Bank and the Funding for Lending Scheme, means that access to finance is no longer the brick wall that it was at the height of the recession.
“Indeed, one could almost argue that at a high level, the credit markets have actually become a bit too congested and over-supplied with the myriad of financing alternatives available. The challenge for many borrowers now lies in navigating the market in an efficient manner to find the financing solution that best suits their requirements.
“What we do see amongst SMEs, however, is too much time wasted on seemingly endless form-filling and compliance with onerous red tape. This is particularly true for those established small businesses who have ambitions to scale up to become the large listed companies of the future.
“Their message is loud and clear: business owners need support to free up their time, and obstacles to trade removed. Anything that eases this burden will ultimately drive economic growth, spur job creation and increase the competitiveness of the UK.”
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Katy Broomhead, KPMG Corporate Communications
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.