Enterprise scheme encourages SME's

Initial findings from a government-backed enterprise scheme have indicated that the benefits of the scheme to the wider economy could be potentially significant.

The Enterprise Finance Guarantee (EFG) scheme is primarily designed to assist small UK businesses in accessing finance through loans. A total of £1.04 billion has been accessed since May 2010 by as many as ten thousand businesses.

Business Minister Michael Fallon commented on the success of the scheme to date:

“Enterprise Finance Guarantee loans are delivered through banks, and I want to see them making more use of the scheme. This latest research shows that the EFG is helping precisely those businesses who can’t get finance elsewhere. It is getting money to where it is needed, saving jobs, and delivering a huge benefit for the wider economy.”

Employment boost

It is also worth noting that the scheme has led to the creation of 6,500 new jobs. In addition, it has been estimated that as many as 12,375 existing jobs have been saved as a result of the scheme’s implementation.

These figures will also be extremely encouraging for the government at a time when employment levels in the UK remain relatively stagnant.

It is interesting to note that smaller businesses appear to be contributing so positively to the economy at a time when numerous major companies such as Jessops, HMV and Republic have been forced to turn to the administrators.

It may be the case that, as 2013 continues, the economy begins to increasingly rely on smaller businesses to drive the stuttering economy forward. 

Insolvency services

Businesses which are struggling in the current financial climate can benefit from seeking advice sooner rather than later.

A restructuring specialist can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business during the year ahead. Taking the decision to get in contact with such a specialist company could be crucially important to your company’s financial future.