HC Deb 22 January 2004 vol 416 cc1386-7W
Mr. Djanogly

To ask the Secretary of State for Trade and Industry what recent assessment she has made of small business failures in the East of England; and if she will make a statement. [149690]

Nigel Griffiths

VAT registrations and de-registrations and insolvency statistics are the best official guide to the number of business success or failures.

There were 17,190 VAT de-registrations during 2002 in the East of England, which was 470 less than those registering for VAT during the same year. There have been more registrations than de-registrations in the East of England each year from 1995 to 2002.

The number of company insolvencies in the East of England area also fell between 1999–2000 and 2002–03. A stable economy with low interest rates has assisted the net growth of business in the East of England.

Mr. Robert Jackson

To ask the Secretary of State for Trade and Industry what percentage of Smart Feasibility award winners have failed to launch product or service due to failure to attract investment. [146315]

Nigel Griffiths

The report of the most recent, independent evaluation of the Smart scheme was published in September 2001. It found that 29 per cent. of those businesses which received only a Feasibility Study award and 19 per cent. of those which received both a Feasibility Study and a Development Project award did not or expected not to introduce a new or improved product or process as a result of the project. Of those businesses, regardless of the outcome of their projects, which found barriers to the introduction of new products or processes to market, 37 per cent. which received only a Feasibility Study award and 31 per cent. which received both a Feasibility Study and a Development Project award cited "lack of finance" as a barrier.