Government pledges extra support to SMBs

Plans to help small firms flourish as Enterprise Finance Guarantee Scheme is extended

David Cameron: Government must do all it can to support SMBs

The government has appointed Conservative peer Lord Young to spearhead plans to increase support for SMBs.

Lord Young has been given the task of writing a “brutally honest” report into the action that needs to be taken to help small businesses prosper as part of his new role as the government's enterprise adviser.

Prime minister David Cameron said that with SMBs providing 60 per cent of the nation’s jobs, the government must do all it can to support their growth.

“This government has already taken action to back small businesses,” he added. “But there is so much more that we need to do to back up our commitment to make this country one of the best in the world to start, run and grow a small business.”

The government has also vowed to make it easier for SMBs to access finance and do business with the public sector.

Business secretary Vince Cable will outline the plans at a ministerial small business summit later today.

According to the Department for Business, Innovation and Skills web site, Cable will use the event to confirm the continuation of the government’s Enterprise Finance Guarantee scheme.

He is also expected to announce the abolition of qualifying factors that prevent SMBs bidding for government tenders. This forms part of the government's wider aim to ensure that a quarter of public sector contracts are awarded to small firms.

Business and enterprise minister Mark Prisk hailed the impact the reforms will have on driving growth in the UK.

He said: “I entered government with the goal of making this the most entrepreneurial decade in our history and I'm confident today's announcements will make that a reality."