UK small business is being encouraged to invest in growth and venture into exportation in a bid to boost the UK economy. A range of initiatives have been announced by the government, to help small businesses grow and create jobs. The Regional Growth Fund of £1.4 billion was previously only available to businesses applying for loans worth £1 million or over. David Cameron announced that £95 million will be available to small businesses who want any amount up to £500,000.
The criteria for businesses applying for funding include not being able to get finance from a bank, investing in capital assets with the intention of creating jobs. HSBC, NatWest and RBS banks are to control the fund. However, small business groups have demanded clarification regarding the conditions for applying for finance.
Other initiatives have also been announced, including a number of banking initiatives which are expected to encourage exporting of goods, a website hosted by British Chamber of Commerce and Yell to provide information on exporting. The Companies House website will also have “one-click registration”, which will let users register their business, register for PAYE, self-assessment and corporation tax in one place. David Cameron said:
“British small and medium-sized enterprises are already doing incredible things, but we urgently need more of them to follow that boldness. We need this to be a country where more people think ‘I can start my own business and I can sell to the world’.”
Small business groups have welcomed the initiatives, although they acknowledge that clarification is required in some areas.
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