EEDA - East of England Development Agency

EEDA welcomes new support to help businesses large and small beat the economic downturn

23 October 2008

The chair of the East of England Development Agency (EEDA) has welcomed government’s new measures to help businesses large and small to beat the economic downturn.

‘Solutions for Business’, launched today, simplifies business support for all businesses helping them find the right products to assist growth. On Tuesday the government announced a package of measures that will provide extra help for small and medium-sized enterprises during the economic downturn.

Richard Ellis said:

“The region’s 450,000 small businesses are critical to the regional and national economy and communities here in the East of England.  We are only one of three regions that is a net contributor to the Exchequer.

“So we welcome the government’s announcement of extra support and also the launch of ‘Solutions for Business’ which will make it easier for businesses to access the support they need to get through the economic downturn and compete in a global marketplace.  

“It’s what businesses have been calling for nationally and in the region. In September, EEDA launched the Business Map to try and simplify the business support landscape. The tool was developed and will continue to develop with these national changes in mind.

“We particularly welcome the government’s commitment to support higher level skills. One in five businesses in the region says that not being able recruit the right people is holding their business back."

Commenting on the government announcement today of measures to assist small businesses, Richard Tunnicliffe, CBI regional director, East of England, said:

“Small businesses in the region will be glad that the government is now taking action to help them through these exceptional economic times, through a range of short, medium and long-term measures.

“Steps to improve the flow of finance to small firms, especially money needed for investment, will be very important for those feeling the squeeze on credit. And speeding up payment times beyond central government will improve the cash flow lifelines on which businesses depend, particularly as many work with local authorities, EEDA and NHS trusts.

“Given the economic circumstances, small firms will be evaluating their training decisions much more carefully. So we welcome this greater flexibility in the publicly-funded skills system. In particular, firms will value funding for shorter units of training that are more focused on the skills they need, and will be easier to fit around the day-to-day running of their business.

“We look forward to further action being taken in the pre budget report which supports small and growing firms.”

Richard Ellis added:

“EEDA is working with Business Link to ensure that our current support packages will evolve as necessary to respond to the economic downturn and in line with ‘Solutions for Business’. EEDA continues to offer a comprehensive business support package, including the long-running Access to Finance programme which has seen unprecedented application levels during the downturn.

“Businesses are cautiously optimistic about the times ahead and investors are still looking to fund companies but they are looking for better deals and the process is taking longer. That is why we are also developing an all-new investment readiness programme to support those entrepreneurs that are facing increasing difficulty in accessing more traditional forms of finance from banks and private investors. The investment readiness programme will provide business coaching and mentoring in order to help businesses manage risks and seek further investment.

“As a business-led organisation we understand how important it can be for a business to be paid as quickly as possible, and during an economic downturn their survival can depend on critical cash-flow.  EEDA is already committed to paying all invoices within 30 days under the Better Payment Practice Code which applies across public sector bodies. However we have taken the decision to reduce our payment timescale even further, to 10 days, because we want to do all we can to help businesses remain profitable during these challenging times."

Barbara Follett, regional minister for the East of England said:

"Supporting business is a key priority for all levels of Government and, in the current economic climate it is especially important.

"Research suggests that the current business support landscape is confusing and that a simplified approach would encourage entrepreneurship and growth.

"That is why the new Business Support Simplification Programme, which aims to make it easier for people and organisations to access government funded grants and advice on how best to start and grow a business, is welcome.

"The East of England Development Agency is working closely with local authorities, GO-East and other stakeholders to deliver the Programme in the region. I look forward to the positive impact I believe this will have on business throughout the East of England."

One of the new products announced today is Grant for Business Investment (GBI) which replaces the Selective Finance for Investment England programme (SFIE). SFIE has been very successful and in 2007/08 it awarded 19 of the region’s companies a share of £1.9 million, levering in £15 million of investment and creating or safeguarding over 200 jobs.  GBI is just one of a suite of business finance programmes available through EEDA. Over the forthcoming months EEDA will be integrating all its business support offerings in line with the new ‘Solutions for Business’ package and the resulting support will be even more flexible and responsive to the needs of the region’s businesses.

The government announced on Tuesday a package to help SMEs through the economic downturn. It includes a commitment by all public bodies including regional development agencies to pay firms within 10 days; extra support  to build skills in SMEs through Train to Gain; a free Business Link ‘health check’ for businesses to identify problems early; and financial advice from the Institute of Credit Management. Business Link will be the portal through which the new support and advice is accessed.

Today the business secretary, Peter Mandelson, launched ‘Solutions for Business – funded by government’, which is a national package of publicly funded business support products. The 30 advice, loan and grant products and services that make up the portfolio have been reduced from over 3,000 products but offer the same level of service. 

The aim is to make it easier for start-ups or existing business companies, large or small to find the right products to help them with common business issues such as finance, export, skills, environment, innovation and growth.