23. Mr. PorterTo ask the Secretary of State for Employment if he has recently met the chairman of the National Training Task Force to discuss the establishment of new small businesses; and if he will make a statement.
§ Mr. CopeMy right hon. Friend the Secretary of State met Brian Wolfson, chairman of the National Training Task Force, on Wednesday 12 July when development funding for the first training and enterprise councils was announced. These new, local, employer-led organisations will help establish a coherent network of support for new and small businesses by, among other things, building upon help provided by local enterprise agencies and others.
§ 83. Dr. TwinnTo ask the Secretary of State for Employment if he plans to meet the chairman of British Venture Capital Association to discuss the development of small businesses; and if he will make a statement.
§ Mr. CopeI have no immediate plans to meet the chairman of the BVCA in the near future, but I do have regular contact with the association.
§ 91. Mr. CarttissTo ask the Secretary of State for Employment if he will report what the Government are doing to help small businesses; and if he will make a statement.
§ Mr. CopeThe Government's overall policy towards small businesses is to create a climate in which they can flourish and to tackle their unmet needs for professional advice and access to finance. The principal Government measures of particular help for small businesses include:
- The small firms service, which provides information and business counselling to new and established small firms and to those wishing to start a business. The SFS gives support to local enterprise agencies which also receive grants from the Government;
- The Rural Development Commission, which provides similar advice and technical services to small firms in rural areas;
- The enterprise initiative, launched by the DTI in January 1988, which offers access to specialised consultancy in a number of key business areas. particular emphasis is being given to single European market issues;
- The recently extended loan guarantee scheme, under which small firms can secure bank loans with the backing of substantial underwriting from the Department;
- The business expansion scheme which encourages equity investment in small firms by allowing tax relief on eligible investment;
- The enterprise allowance scheme which provides an allowance of £40 per week to previously unemployed people to make up for loss of benefit in their first year of self-employment; and
- A range of training programmes operated by the Training Agency which take account of new and established small firms' business training needs.
The success of these measures is reflected in continued steady healthy growth of the small firms sector.