Is the government doing enough for small businesses?
One area of concern for UK businesses is the lack of funding for small to medium-sized enterprises in the UK which is forcing many previously strong operations to cease trading. Despite the previous government placing significant pressure upon the banking industry to increase liquidity and funding for small to medium-sized businesses there is very little sign of this occurring as yet. So what can the government do?
In many ways the UK government has its hands tied because ultimately there have been warnings to the UK banking industry to reduce their risks while at the same time asking them to increase liquidity for small businesses, which are at the highest end of the risk spectrum. The very fact that the government has very limited funding available to inject direct liquidity into this area is a concern which many people have noticed and are becoming increasingly worried about.
The truth is that in reality we need an improvement in the UK economy before any significant increase in liquidity will occur in the overall money markets, let alone the small business arena. Whether George Osborne's recent budget will scupper any economic recovery in the short to medium term is debatable but businesses are crying out for new liquidity.
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