Trade and Industry Secretary Alan Johnson today launched a multi-million pound government scheme to boost innovation, jobs and growth for small and medium sized businesses in the UK.
Up to £200m will be made available via the Enterprise Capital Funds (ECFs), which are commercial funds using a combination of private and public money for small high-growth businesses seeking equity finance.
It will provide match funding of up to £1m for business angels and venture capitalists to help SMEs bridge the equity gap and reach their full productive potential, the government said.
"Entrepreneurship and innovation are cornerstones of competitiveness in today's global economy, but many businesses with genuine potential fall at the equity gap hurdle," said Johnson.
"Enterprise Capital funds will help to tackle this so that sound British businesses are able to progress boosting economic growth and job creation across the UK," he added.
Prospective ECF fund managers have eight weeks to prepare detailed bids, showing how they will target their activities towards SMEs in the equity gap. They must demonstrate skill and experience in identifying and helping such companies recognise their potential.
Bids will be assessed by the Capital for Enterprise Board, an independent body of industry experts appointed by the Small Business Service, who will make recommendations to the government.
Successful bidders will be able to use the Government scheme to attract private capital. The Government will provide up to twice the amount of private money committed to each fund, taking a modest share of the profit.
This story has been provided by Venturedome.com.
