"Huge differences" in small business support explained

Date: 13th February 2008

Significant variations exist in the level of support offered to business start-ups in the UK, an industry group has stated.

According to StartupCo, there are currently "huge differences" in the amount of financial assistance available to the country's new businesses, even at a "sub-regional" level.

Director John de Groot used the example of West Sussex, where one local authority has an economic development department that actively encourages people to start new enterprises with grant schemes, while a neighbouring authority makes no provisions for business start-ups at all.

He added: "There are a number of factors at play which will create regional, sub-regional and very local variances in the degree of business support."

Mr de Groot stated that "there are always political issues" involved in funding small businesses which tend to complicate matters, particularly as regional development agencies are often reluctant to release money unless they are confident of a significant return.

He said: "There just isn't enough public money to help everybody."

The Federation of Small Businesses recently called on the government to give small firms more guidance on important legislative changes.