Small Businesses

HC Deb 15 July 1992 vol 211 cc785-6W

Mr. David Shaw

To ask the President of the Board of Trade if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months relative to the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.

Mr. Leigh

The Government continue to help small businesses, through improvements to the business climate, through deregulation and through specific programmes of support and assistance.

Measures operated by my Department to assist small businesses include: The enterprise initiative consultancy help scheme. In the year ended March 1992, 23,342 applications were received and 17,996 were approved. The small firms merit award for research and technology (SMART) scheme. Last year 180 grants, the maximum number on offer, were made. Support for products under research (SPUR) which helps small firms develop new products and processes. In the first 12 months of the scheme, to February 1992. 100 grants were offered worth over £9 million.

For the future, I intend to establish a network of first stop shops to act as a central signposting and referral service for small firms to all the business support measures available in an area from all sources. As a first step, 10 to 15 pilot projects will be established as quickly as possible.

The loan guarantee scheme enhances smaller firms access to finance. In the 12 months to 30 May 1992, 2,916 loans were guaranteed to a value of £69 million.

A guide to sources of venture capital under £250,000 was published. This comprises a booklet which aims to take some of the mystery out of venture capital and a directory which lists more than 200 organisations throughout the country which offer smaller amounts of venture capital.

Informal investment demonstration projects have been established by five training and enterprise councils in partnership with other local organisations. They help bring together potential investors and small businesses seeking investment. The projects, which were established with pump-priming money from the Employment Department, were established in January 1992 and will run for two years.

New measures were announced at the time of the 1992 Budget to help small firms. These include new Government contracting terms requiring those companies awarded Government contracts to pay their subcontractors promptly; consideration of changes to company reporting requirements to oblige large companies to state their payment terms and performance in annual reports and accounts; improvements to court procedures for debt recovery and financial assistance for trade associations to develop new prompt payment initiatives.

The Department monitors all its programmes and also commissions external evaluations which are published. In May 1992 the Employment Department published "Small Firms in Britain" which was sent to all Members of Parliament. This report surveys developments in the sector, including key statistical indicators and outlines overall Government policy towards small firms.