CMM contributes to Local Economy policy review
CMM managing director, Graham Allen, has recently contributed to Local Economy’s online journal with an article about Vince Cable’s Business Bank.
Local Economy is a peer-reviewed journal operating as an interdisciplinary forum for the critical review of policy developments in local economic development and urban regeneration.
It seeks not only to publish analysis and critique but also to disseminate innovative practice.
Below is a summary of Graham’s contribution, which is based on a broker’s viewpoint:
To address the difficulties businesses face with obtaining funds for investment, the Business Secretary, Vince Cable, announced the setting up of a Business Bank and the Angel CoFund.
The analysis in this article reveals that all is not as it would seem. Far from being a public sector intervention, the role of the bank is to encourage the development of private sector solutions.
The Angel CoFund has had some successes but a company needs to ‘secure the interest’ of a first time investor.
The article argues that German-style Sparkassen are needed: that is, regional banks that provide the seed money for SMEs to get off the ground and grow.
Without something like this business growth in the UK will be wanting.