Small businesses require finance to start, develop, and grew.
Research shows that there is a mismatch between increased supply of finance to small firms, and their ability to use it properly. They need to be ready and able to access finance, without it they cannot develop and grow. The finance for investment in small business is there, small businesses cannot or do not know how to access it. This problem must be tackled if Britain is to improve its productivity performance. Government is stimulating this growth through various channels, for example via recent reforms to capital gains tax, the Enterprise Investment Scheme, and Venture Capital Trusts.