The Forum of Private Business (FPB) is concerned at reports that high street banks are beginning to reduce credit facilities and increase overdraft charges at a time when small businesses are most in need of funding.
Following the merger of HBOS and Lloyds TSB, the FPB is warning that less choice between banks could mean that, as the credit crunch continues, the services offered to small firms are diminished.
Recent research carried out by Cambridge University
shows that although the number of small firms seeking finance in 2007 increased only slightly from 2004, when the previous survey took place, the level of funding required soared from an average of £82,000 to £470,000.
That figure is likely to have increased markedly over the past year.
“It appears that, just as the funding requirements of small businesses are increasing because of the economic downturn, banks are cutting back on both the level of facilities they provide and the services they offer,” said FPB chairman Noel Guilford.
“Accessing finance in order to maintain a healthy cash flow is always a key issue for small firms – now it has become a matter necessary for survival as much as growth.”
Agency scoops design award
social innovation design agency thinkpublic – founded by Peterborough woman Deborah Szebeko (28) – has won the British Council’s UK Young Design Entrepreneur (UKYDE08) Award.
Ms Szebeko collected the award from Sebastian Conran at the 100% Design exhibition in London’s Earls Court.
UKYDE highlights the contribution that entrepreneurs in the sector make to the development of the UK’s design industry through their work and understanding of the market.
The award, a blue glass bowl, is accompanied by a visit to India in January 2009 to meet with leading industry figures to enable thinkpublic to understand the market and infrastructure in India.
thinkpublic, formed in 2004, has gone from strength to strength in providing a unique service to the public and third sector including the NHS Institute for Innovation and Improvement, the Department Of Health, Timebank, The Alzheimer’s Society and Barnet Council.
The company uses design, film and workshops to bring clients, their staff and service users together to help improve the services offered.
n For more information, visit http://thinkpublic.com/news/
The full article contains 379 words and appears in Peterborough ET newspaper.
