Governmental EFG business loan funding drops

Governmental business loan funding through the Enterprise Finance Guarantee scheme has dropped precipitously to its lowest levels since the launch of the initiative.

2010’s fourth quarter saw funding drop by a rate of 31 per cent down to £99 million. The figures for the previous quarter indicate funding of £144 million for small business bank accounts.

Venture capital lending facilitated by the scheme hit a peak in 2009’s second quarter with £255 million.  Since then funding has been declining rapidly; current lending levels indicate only 39 per cent of the 2009 figure.

Financial service provider Aldermore’s chief executive Phillip Monks recently commented that EFG lending has shown to be quite aenemic. The government is quite keen to help small enterprise, added Mr Monks; he doubted they would like to see business loan levels shrink any further.  The chief executive added that heightening the attractiveness of the scheme to either businesses or lending institutions may be one relatively inexpensive way to generate renewed interest.

In a related news story, the Federation of Small Businesses recently stated that the government needs to do more in order to encourage the growth of female entrepreneurs in the UK.

A newly published report by the FSB stated that the government should follow the lead of other countries’ efforts to support female entrepreneurship.  Highlighting that 29 per cent of the UK’s self-employed were female, the report found that the number of women in the working economy was 46 per cent, indicating a 17 per cent disparity.

John Walker, national chairman of the FSB, stated that it was striking how low the number of female entrepreneurs was.  The UK needs to learn from countries that have nurtured the growth of female-owned businesses such as the US, remarked Mr Walker.  He added that doing so the UK government can help cultivate an economic landscape that would be conducive to growth in addition to talking high unemployment rates.

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