What is the government doing to make it easier to set up a business?
With the recent economic downturn it has been difficult for small to medium enterprises (SMEs) to get the funding or investment they need to start up or continue trading. The government have therefore been looking at more innovative initiatives to encourage private sector investment and have launched the following:
- Business Finance Partnership (BFP). The BFP has a total of £1.2 billion government allocated funds, matched with an equal investment from the private sector, with which to lend monies to SMEs, so they are no longer dependent on bank loans. The BFP gives these funds either to fund managers or non-traditional lenders with a view encourage lending in this sector.
- Start-up Loans Scheme. This scheme will provide approx. £2,500 directly to each young entrepreneur, aged between 18 and 30, who wants to start their own company.
- Business Angel Co-Investment Fund. This is a £50million fund aimed at encouraging entrepreneurial individuals to invest in small start-up businesses in return for a share of their profits.
- Enterprise Capital Funds programme. This scheme ensures that venture capital is available for innovation SMEs with high growth potential that would struggle to find funding elsewhere.
- Tax incentives for investment in SMEs. Including the new Seed Enterprise Investment Scheme (SEIS) which help raise investment for small to medium sized businesses by offering a range of tax reliefs to investors who purchase new shares in those companies.
For more information on any of the schemes and funds available as a private investor or as a SME please go to the latest policy page from the Department for Business, Innovation & Skills.
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