§ Mr. McNultyTo ask the Secretary of State for Trade and Industry what plans he has for stimulating the availability of finance for SMEs through the regional venture capital funds element of the Enterprise Fund. [89955]
§ Mr. ByersI have today published a consultation paper, "Addressing the SME Equity Gap—Support for Regional Venture Capital Funds" which sets out our proposals and seeks views on the design and form of the support for the Regional Venture Capital element of the Enterprise Fund. Depending on the results of the consultation, I will be making up to £50 million available over the next three years to support the creation of Regional Venture Capital Funds. I expect this to lever in significant amounts of matching private sector finance.
The intention of our support is to provide a model which regional partnerships, working with Regional Development Agencies, can use to stimulate venture capital funds to address the equity gap. The purpose of this intervention is to increase the amount of equity finance available to growing SMEs to enable them to compete in a global economy and ensure that each region in England has access to a viable, regionally based venture capital fund. Scotland, Wales and Northern Ireland already have in place mechanisms for venture capital support.
455WThe Government are seeking views from entrepreneurs, representatives of Small Firms, the venture capital and finance industries, Regional Development Agencies and business support organisations.
Copies of the consultation document have been placed in the Library. I look forward to receiving comments from those interested by 30 September.