Despite the EU dedicating £3.6bn to develop the competitiveness of UK small firms for the funding round ending in 2020, there is currently no regional development spend budgeted at the national level beyond 2021.
According to the report – ‘Reformed Business Funding: What Small Firms Want from Brexit’ – almost four-fifths (78%) of small firms have sought business support services over the last 12 months.
Mike Cherry, national chairman of the FSB, said: “Small businesses across the country are staring into a business support black hole from 2021.
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“This is a particularly pressing issue for the many small firms with growth ambitions and those in less economically developed regions.”
Businesses in the North of England were found to be most likely to apply for EU-funded schemes, with Yorkshire leading the way at 25%, followed by the North East (22%) and the North West (18%).
“If the next government is serious about developing an industrial strategy that delivers prosperity across all areas of England, it must replace EU funding dedicated to small business support and access to finance after we leave the EU,” Mike added.
The majority of small firms that have applied for EU schemes reported that funding has had a positive impact on their business (68%) and local area (64%).
The FSB has proposed a single growth fund for England that would simplify the funding streams to Local Enterprise Partnerships.
It also suggested that a ‘What Works Hub’ should be established to evaluate the effectiveness of different schemes and facilitate their improvement.
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