A lack of funding is holding back West firms as they struggle to overcome tough market conditions, according to a new study.
Improving access to finance for small and medium-sized enterprises (SMEs) is is high on the Government’s agenda as it tries to stimulate economic recovery.
But according to research carried out for Bibby Financial Services, the UK’s largest independent invoice finance provider, 26% are calling for greater access to funding to help them achieve their aspirations.
Worryingly, 13% do not expect to be able to grow their business over the next three years because of the economic climate and just 10% have expanded so far this year.
The survey also showed that just 11% of SMEs feel there are good business support networks in place in the region.
Bibby Financial Services regional managing director Sharon Wiltshire, pictured, welcomed the recent announcement that the Government is looking at new ways to support regional businesses through the Local Enterprise Networks (LEPs).
“It’s evident that many SMEs across the country have struggled to access funding through traditional channels, such as banks, so we welcome the news,” she said.
“Giving local government more autonomy in relation to how funding is allocated would be a big step forward, particularly in this region where we have a great number of ambitious and innovative businesses.”
There was a real need for a much stronger focus on regions as they will drive the national recovery, she said.
Bibby Financial Services provides more than £36m of funding to West businesses and is looking to increase the level of funding it can make available to the region’s SMEs.
