Are we killing the small business arena?
Over the last few months it has become more and more obvious that the number of small business start-ups in the UK is set to fall dramatically in the short to medium term. Amid signs that UK banks have effectively cut adrift the small business arena there are concerns about the future because many of these small businesses will become medium-sized and large businesses in the future. The UK has a proud history of small business investment although this has taken a dramatic turn for the worse since the credit crunch and recession hit home.
The problem which the UK banking arena, and the UK government, has at the moment is the fact that if small businesses are unable to obtain finance in the UK they may well look overseas. As a consequence, we could well see a number of potentially highly lucrative companies switching allegiance to overseas markets and effectively escaping the clutches of the UK taxman. Aside from the fact that the UK government needs as much tax income as possible, the loss of one business to an overseas market could very well quickly mushroom and become something of a trend.
Unfortunately, at this moment in time UK government is short on finance to offer direct assistance to UK businesses but this will need to change in due course.
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