Research has shown that one of the main barriers to business start-up and growth is the availability of business finance. This issue has been exacerbated over the last eighteen months by the worldwide credit crisis. The problem of accessing finance, particularly for SMEs is not limited to the UK. Many European countries have recognised the importance of fostering entrepreneurial SME growth via the creation of a range of innovative business funding solutions.
North East Access to Finance is a company set up by One North East as part of a comprehensive regional access to finance strategy (the Finance for Business North East programme).
The purpose of the company is two-fold: firstly, to utilise the investment returns made from previous and current regional investment fund activity in order to ensure an evergreen continuum of finance for the region’s businesses and secondly, to ensure that the support infrastructure essential to maximise the regional benefits arising from investment fund activity is developed. On this basis, the investment returns generated by regional funds like the North East Co-Investment Fund, the North East Investment Funds and the new £125m Finance for Business ‘JEREMIE’ portfolio will be utilised to ensure the continued delivery of innovative funding programmes for business in the future.
In addition, NEA2F will be working on a wide range of initiatives, such as improving Business Angel capacity, increased training for entrepreneurs in ensuring their businesses are investor ready, and mentoring initiatives to enable skills and experience to be passed on to the next generation of regional entrepreneurs. We have already embarked on two key projects. The first is to provide a comprehensive Access to Finance guide for the North East region. This will ensure that regional businesses are fully aware of the comprehensive range of funding solutions that are available to them.
The second is to start work on the creation of a financial community through our website nea2f.co.uk. Throughout the course of 2010 this work will continue to be developed utilising our many friends and partners in the region. At the same time we are working on the possibility of creating additional ‘pilot’ investment fund initiatives in the future (where continued funding gaps exist), and news on these will be released in due course.
The chairman of the company is Hugh Morgan Williams who has been involved in Access to Finance initiatives in the North East for 15 years. He is ably assisted by Graham Thrower, formerly with Citigroup, a One North East board member as well as chairman of the national music development agency Generator; Geoff Hodgson a well known businessman with wide interests in the tourism and hospitality sectors; and Mark Chidley senior banking partner with law firm DLA Piper.
NEA2F is committed to ensuring that SMEs in the region get the help they need to secure the funding they require, and overcome one of the main obstacles to growth in the region. Small and Medium Enterprises are essential in ensuring that the region has a growing and internationally competitive economy. These businesses create employment opportunities for the region’s population and wealth for their owners, managers and investors. This wealth, when recycled in the region creates a ‘virtuous circle’ of entrepreneurial business growth.
For more information on North East Access to Finance, please visit our website www.nea2f.co.uk
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