MADE festival for entrepreneurs talks finance

In this economic crisis, banks are becoming more reluctant to offer credit to consumers and businesses. This can mean that businesses that wish to expand cannot do so because they do not have the funds and they cannot borrow easily. Small businesses are calling on the government and banks to make lending more available.

The Federation of Small Businesses is headed by John Walker, and he has said, “it is essential that banks use any extra money they have to lower the cost of borrowing and increase its availability to businesses.” George Osborne has recently highlighted at the Conservative party conference the problems of lending to small businesses. He said, “Banks are suffering and they are not lending at the current rate.”

As much as the media are making a big deal out of the lack of lending many people think that this is not a time that small businesses want to be borrowing anyway. Sheffield recently hosted the MADE festival which is for entrepreneurs. An owner of a small business at the fair suggested that perhaps small businesses are not looking to borrow, because of the poor state of the economy.

Many people at the conference echoed his sentiments saying that they are not considering increasing the size of their business until the economy improves. Doug Richard, who was on the original Dragon’s Den, has said any business that is serious would not turn to a bank funding in these times. He has called the writing journalists have done about the lack of funding as ‘ridiculous.’ Serious businesses are looking for investors and venture capital not a bank loan.