FSB suggest improved financial support needed for the licensed sector
Better financial support is required for SMEs and start-ups in the food and drink sector, according to the Federation of Small Business (FSB).
They claim the Bank of England needs to do more to promote growth with a report suggesting four in ten of these businesses are struggling to access finance.
Of those, one in five listed it as a barrier to growth while there have been concerns that SMEs might not be fully aware of their lending options.
In an industry filled with uncertainty over what the future might hold, it is therefore imperative that this assistance is forthcoming.
Those in the licensed trade are currently exploring their options with questions being raised over what the future may hold for the sector.
John Allen, national chairman of the FSB, said: “The FSB has called for the government to promote alternative forms of finance, such as peer-to-peer lending models, and to learn the lessons from other countries where routes of finance are varied, local, longer-term and reliable.”
The general consensus is that firms need to be more aware of their options while those that fear the worst are encouraged to act early.
Those with financial difficulties and requiring expert help should not wait longer than is necessary, as this can have far-reaching consequences if issues are allowed to get out of control.
Should corporate recovery be required, that does not need to signal the end of the road either, as options remain at that stage for the business to be rescued.
The FSB has highlighted the importance of creating an environment which encourages investment, as this is less likely with uncertainty looming over the sector like a storm cloud.
One such way of doing this might be to have more targeted tax incentives for SMEs and start-ups in the sector, including the removal of capital gains tax.
This would make selling assets more beneficial and could lead to a more competitive market place.
By Phil Smith