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G20: the danger for SMEs

Gary Reid is just about to launch a business, Nude, that aims to create more flexible working environments for employees in the creative industry.

He says: “If the UK and US governments are successful in lobbying the G20 for approval of a massive global stimulus package, it is essential that they also ensure the proper regulations are put in place to enable access to emergency funds for small businesses.

"Current regulations set out by the Brown government mean that small business owners can only access funds as a very last resort. If we are serious about preventing unemployment and the collapse of more businesses, it is essential that lending channels are opened up to allow businesses to not have to make redundancies before they receive a lifeline.”

Stephen Bentley, the CEO of £5m-turnover Granby Marketing Services, is concerned a global stimulus package may harm the nation’s entrepreneurial businesses. He says: “Fiscal spending will keep the unemployment numbers down – but it is only buying time for an upturn. Countries with a stronger performance or who consider themselves in pole position to bounce back may use veto as an option to put pressure on the UK and US.

“For the UK’s SMEs, the difficulty is likely to come from the resistance of banks to lend in the areas of growth and development. New startup ventures or expansions may be restricted to the sure bets only, which will stifle entrepreneurs and restrict the economy. G20 may mean more successful SMEs could end up picking up the tax burdens and increased resource costs for stimulating the new growth.”

The Entrepreneurs’ Summit – the "E20" – takes place on May 13. Theme: "Don’t just Survive, Reinvent!". Supported by the CBI and in association with Investec Private Bank, Real Business readers get a recession-busting discount of £195 for a place. Venue: Marriott Grosvenor Square. Email Elicia Nairn on [email protected]; Tel: 020 7368 7123;

Related articlesG20 must help banks lend againEntrepreneur in the wings at G20Picture source


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