Business and Enterprise Minister thinks outside of the box
Mark Prisk, the UK government's business and enterprise Minister, has today introduced a very interesting topic into the small business arena. As the liquidity crisis continues in the UK financial arena he believes that some small businesses should be looking to swap equity for additional funding in the short to medium term. While this is commonplace in the property sector it is not something that many small business owners would automatically consider.
However, when you consider that the former boom years in the UK saw the creation and expansion of a number of small businesses then perhaps now is the time to "cash in these chips". While many would argue that selling a share in your business in the current economic climate is commercial suicide, can it be any worse than running out of money before the UK banking arena increases liquidity?
It is the old conflict of interest, would you want to own 100% of a failed business or a majority stake in a successful and well-funded business?
While some would argue that the Minister for business and enterprise is a little naïve in his fundraising suggestion, surely now is the time to think outside of the box and attempt to secure a future in the business arena?
Share this..
Related stories
Barclays Bank could put all directors up for renewal
It has been revealed that Barclays Bank may be forced to put all directors up for renewal in the aftermath of the middle east fundraising. It is rumoured that institutional investors are furious that the bank has effectively raised cash for a cost of 13% which is significantly higher than that offered by the UK government. This is a situation which has been ongoing for a couple of weeks now and on...
Read MoreIs this the bottom of the UK banking sector?
Today's figures from Barclays bank have been well received by the city and many analysts and investors are starting to call the bottom of the banking sector. However, it is worth remembering that Barclays was one of the few banks which declined the government's offer of taxpayer funding and instead decided to go for a commercial deal with investors in the Middle East. Even though this strategy att...
Read MoreWhat comes first finance or employment?
Gordon Brown's £500 million scheme to get the long-term unemployed back into employment has prompted a very simple question, what comes first, finance or employment?
The very laudable scheme could well be weakened by the fact that business finance is very thin on the ground and more and more businesses in the UK are struggling to keep their operations ongoing. It therefore seems ne...
Ethel Austin slips into administration
Discount clothes retailer Ethel Austin has today been placed into administration with 3,700 jobs at risk as the company struggles to survive. Administrators took control of the company early today with the snowy weather over the festive period one of a number of factors which appeared to have pushed the company over the edge. While it is hoped that buyers will step forward to acquire the business...
Read MoreLondon shares fall for third consecutive day
Despite the UK stock market beginning 2010 in a very positive vein we have today seen the market fall for the third day in a row. There are concerns about the UK banking arena, after moves by the US government, as well as worries about the Chinese economy which has begun to wobble after a relatively upbeat short-term performance. If nothing else, concerns about the UK banking sector and the Chi...
Read More