Abbey hopes to see more British small firms

14/03/2008

The Abbey banking group has responded to the recent Budget by suggesting that some of the reforms could encourage more small firms to start-up around the UK.

According to the group, almost half of all Britons would like to run their own business and the government's pledge to make more contracts available to the sector could make the prospect a reality for an increased number of people.

Many small business owners turn to debtor finance to solve their cashflow concerns, but only one in six consumers in the UK currently consider starting a company to be a viable option.

British women tend to be less confident about their chances of starting a small firm than their male counterparts and with this in mind a £12.5 million fund has been established by the government with the aim of boosting female entrepreneurs.

"As the government has recognised, small businesses need all the help they can get - especially when starting up," said Ian Wilson, managing director of Abbey Business Banking.

A recent report from the Financial Times suggested that small firms in the UK will be increasingly in a position to borrow money based on public sector contracts they have secured.