The second stage of the independent review into the availability of funding for Welsh SMEs has now been launched and the call for evidence is now open.
The review, commissioned by Economy Minister Edwina Hart and led by Professor Dylan Jones-Evans, is examining how effectively Welsh businesses can access existing sources of funding. The aim is to identify areas of particular challenge and provide recommendations for action.
The first part of the review has now been completed and focused on the efficacy of the high street banks in providing the finance needed by Welsh businesses and SMEs in particular.
The second part will look at the alternative sources of finance for Welsh businesses with a draft report scheduled to be presented to the Minister later this year.
Professor Jones-Evans wants to hear the views of businesses in Wales on their experiences – both positive and negative – with alternative finance providers and organisations other than high street banks.
He said: “I would like to thank all the businesses and interested parties that responded to the first call for evidence – their views and experiences were invaluable in enabling us to draft an extremely comprehensive report.
“The first report suggested that there may not be a “one size fits all approach” to funding Welsh businesses, especially given the potential use of various forms of alternative sources of finance. Nevertheless, these models will be examined in detail during the next stage of the review, which will focus on examining the options as to how the Welsh Government could, or should, help develop a new financial ecosystem in Wales that will support the development of a strong, sustainable and vibrant SME sector.
“This second stage is equally important if we are to get a clear picture of the issues and challenges facing SMEs in Wales. Access to finance is essential for business growth and the information we receive and the subsequent analysis of the data will help inform the response given to the Minister.”
Businesses and other stakeholders are asked to respond to a number of questions in this second phase including their knowledge on funding available through the Welsh Government, the UK government and the European Union and how access can be improved. They will also be asked about their views on trade credit and how it affects their company, clients and suppliers, their experiences of using invoice and asset finance, and their use of equity investment. There will also be a more detailed analysis of the use of new forms of finance for SMEs including peer-to-peer lending and crowd-funding.
The deadline for responses to this second phase is Friday August 30th and views may be submitted by post or online. Further information including the questionnaire is available on:
http://wales.gov.uk/topics/businessandeconomy/policy/financereview/