Small Business Credit

In the views of the politicians, the economy was not one of a ‘Golden Age’. As the British Cabinet Paper wrote, ‘It is clear that ever since the end of the war we have tried to do too much…we have only rarely been free from danger of economic crisis’. This illustrates the fact that although the economy was not falling apart, it was not stable and not prosperous. There was also a lack of a plan to deal with the economy; the government merely adjusted the system as it went along, which sometimes resulted in high rises of inflation or sudden consumer booms that did not correlate with its ability to pay for them – causing a deficit.

Andrew Bailey (2013) “The future of UK banking - challenges ahead for promoting a stable sector”. Bank of England [online]. Available from:

Just seven short years ago, our country was on the brink of financial collapse from the Great Recession under the Labour Party’s irresponsibility in the handling of government debt (Pettinger). Through practicality and responsibility, we have repaired the damaged and once again have placed the

SMEs have to slowly build up their companies, get a proper accounting and financing department to ensure that they have proper records on their accounts. This will allow them to make better financing decisions and hopefully get enough profit to further expand their businesses. By building credibility, banks in future will be more willing to extend their loans to these companies. Finally, it is important to have the right cash conversion cycle length in order to avoid having to borrow money constantly. There has to be a balance though because paying their suppliers too late would decrease their credibility and they have to bear in mind that not all accounts receivable will be received on

Economically, UK has not been that stable as far as economic activity is concerned. The global economic meltdown and its aftermath are still being felt today. The years following the 2007/2008 were economic roller-coaster in UK. By 2009, the economic growth declined by -4 leading to low GDP

Many business need to raise capital in order for their business to function. Different sources of finance have different implications for a business, so the most appropriate method of finance needs to be chosen for the purpose that the business has in mind. The UK market is growing rapidly, and has more than doubled2 in size year on year from £267 million in 2012 to £666 million in 2013 to £1.74 billion in 2014. In the process, it has given individuals more control over their money as well as new outlets to invest or donate it. According to Manos Schizas, Senior Economic Analyst and Acting Head of SME

In this essay I will discuss the policy objectives, which governments have used from the credit crunch of 2008 and up to the present. I will explain how effective they have been and how far the global economy has affected those polices. UK Governments have used many policies to help stimulate the credit crunch of 2008-2009, bringing many advantages and disadvantages to the UK.

Discuss how far recent UK economic policy has been successful in achieving the macroeconomic objectives.

In this essay I will be examining how the financial crisis in 2008 caused the UK government to change their aims and policies to aid recovery. I will be looking to both monetary and fiscal policies and weighing up how effective the Coalition have been in improving the British economy. I will be comparing the aims and policies to those of other countries and evaluating what has restricted the UK economy from growing.

Small ticket size and high transaction cost is one factor which challenges the SMEs in working capital because it leads to low revenue per customer but high distribution, manpower and marketing costs. This then deter financial institutions from investing on the ticket size of loans

Since 2009 the British economy has been failing. Although economic recovery recently looked possible, it has continued to falter. At present with the prospect of high energy prices, there is the possibility of inflation, although some commentators still hold that this is unlikely. Nevertheless, there has been a considerable fall in productivity.

Macro-economic policy is designed to achieve the aims of full employment, stable prices and sustainable development. In order to achieve them, policies and targets are set by governments. These policies are mainly monetary and fiscal. In this essay, I will examine the aims and policy objectives which UK governments have pursued from the credit crunch of 2008 up to the present time.

In 2014 SMEs account for 99.3% of firms (4.8 million companies), 47.8% of employment (15.2 million people) and 33.2% of annual turnover (£1.6 Billion)6. The European Commission SME Performance Review provides estimates for the EU private sector. In 2014 SMEs account for 99.8% of firms (21.6 million companies), 67.5% of employment (88.8 million people) and 58.4% of annual turnover (€3.6 Trillion)9.

This paper focus the study on the SME sector in UAE, highlight the various clusters in SME in UAE. There is also subsequent discussion about the limitation and challenges of SME and various government funding schemes which helps to overcome these challenges and limitations. Private sector has also taken this step to help SME’s by providing the funding to them. Last section

Majority of the rural population have been marginalized and major financial institutions have either pooled out their financial services from these regions due to low business volumes. Rural entrepreneurs for a long time were not empowered and lacked the financial infrastructure to support their skills and to promote the entrepreneurial culture and drive them out of poverty bracket. Rural entrepreneurs have different needs which cannot be catered for by the major financial institutions hence, the microfinance institutions have come up with various strategies which include the use of the non-traditional methods such as the group lending and other practices which are not being used by the banking sector for enterprise development in the rural areas (The Mix,2010).