Government review to examine small business recovery

A new review has been launched by the Government to assess how small and medium-sized enterprises (SMEs) will recover from the recession.

Led by venture capital expert Christopher Rowlands, the Growth Capital Review aims to determine whether SMEs will require Government intervention to make the most of the businesses opportunities that may emerge as the economy picks up.

This may include a modern-day version of Industrial and Commercial Finance Corporation/3i, which was set up in 1945 to offer capital to small firms.

Business Secretary Lord Mandelson said: ‘We have taken action to help businesses access short term finance to survive the global downturn, and to build our economic future.

‘This review will identify if there is a role for Government in facilitating public and private investment to address gaps in the market. Our priority will be to ensure that high-growth businesses, which will be very important for the economy, are able to secure the capital they need.’

The review will seek the opinions of those in industry and Government, before reporting its findings to the Business Secretary ahead of the Pre-Budget Report.