Thames Valley: Henley Business School hosts talk by CBI chief on funding options for SMEs

CBI director-general John Cridland talked to Henley Business School yesterday afternoon about the importance of financing for small and medium-sized firms (SMEs), the new political landscape and EU reform.

Speaking on funding, he said: “Small and medium-sized businesses are the backbone of the UK economy – that’s why we need to make sure they get the support they need to help them continue to grow and reach their ambitions.

“The economic picture is brighter and we expect a strong pick-up in business investment over the coming months.

“Access to finance is improving – new alternative forms of finance from both banks and non-banks have grown hugely and businesses are increasingly taking up these opportunities.

“But challenges remain, which is why the CBI has developed an online interactive ‘FindmyFinance’ tool – navigating firms through a decision tree to decide what’s right for them.

“We have also been working with our small business community to develop a guide to good business lending – both by banks and non-banks.

 “We will be continuing to work hard to ensure businesses receive the support they need and will champion this agenda with policy makers.”

The CBI recently published its Financing our Future Economy report setting out action points for the incoming UK government to spell out how they can bridge these finance gaps.

Commenting on the new political landscape, Cridland said: “The CBI will be ramping up our engagement with new MPs, not least here in the South East, to ensure the voice of business is heard during debates, votes and legislation.”

He warned that while the election result was decisive, the Conservatives’ narrow majority could mean uncertainty is likely to permeate this parliament.

“We anticipate that close parliamentary votes and political trade-offs could be a feature of the years ahead.

“We also stand ready to engage with the new leaders of Labour and the Liberal Democrats to ensure the new shadow teams understand and support business priorities for the next five years.”

On EU reform, he said: “The CBI has called on business leaders to speak out early in favour of remaining within a reformed European Union.

“With a referendum on our membership almost certain before 2017, the country will soon face a stark choice between openness and isolation.

“Access to the single market – a market of 500m customers – has been crucial for the fortunes of thousands of small and medium-sized firms who form part of larger supply chains.

“We’re not saying the UK couldn’t survive outside the EU, but the question is whether it would thrive. For those advocating exit, they need to offer a credible and prosperous alternative. As far as we are concerned, this is not on the table.”