A new report from the OU suggests that there is considerable support amongst small and medium-sized enterprises (SMEs) for the UK Government’s proposed British Business Bank.
When asked 'Would an institution like the proposed British Business Bank be likely to help firms in your industry to increase the amount they invest in their business?', almost half of respondents (48 per cent) agreed, while 30 per cent disagreed and 22 per cent were unsure.
Levels of support for this new institution were also found to be broadly similar across firms of different sizes. The study, which was sponsored by the Finance and Leasing Association, also asked SME owners and managers what they saw as the bank’s key priorities.
The most commonly identified task was ensuring adequate access to finance during economic downturns (64 per cent of respondents), closely followed by improving access to longer-term finance, such as 10 year loans (60 per cent), and providing Government support so that commercial providers can lend more easily or more cheaply (59 per cent).
Dr Richard Blundel, of The Open University Business School, commented: "These early findings indicate suggest that many SMEs are positive about Vince Cable's plan to create a new institution to complement existing finance providers and deliver added impetus in specific areas, such as new business start-ups and long-term financing.
"Current market conditions are extremely tough for many SMEs, while the prospect of sustained economic recovery remains elusive. We may also be seeing some of these wider concerns reflected in the way that people have responded to this novel idea."
The report is available to download here.
