Members of the Lords asked the government what steps it is taking to improve access to finance for small and medium-sized businesses, on Thursday 30 January.
Lords outlined the pressures faced by small and medium-sized enterprises (SMEs), and also the benefits they bring to the economy, citing research from the National Audit Office that says ‘three-quarters of all new jobs in the UK are created by SMEs’.
Peers looked at the range of support the government are giving to SMEs, including the establishment of the British Business Bank and the Enterprise Finance Guarantee. Others raised concerns that banks are currently too concerned about taking risks with lending, and that many businesses are not aware of the options that are available to them. They also highlighted the importance of mentoring for young people thinking of establishing a business.