DATE: 1 November 2010
UK Music has welcomed today’s (November 1st) announcement by the Department for Business, Innovation & Skills to review the challenges faced by creative industries when attempting to access finance.
Today’s announcement also recognises concerns voiced by UK Music around the Enterprise Finance Guarantee (EFG), and that a scheme designed to support lending to viable small businesses with insufficient collateral or the financial track record to access commercial loans, has proved all but inaccessible to our members.
Accordingly, along with guaranteeing £2bn of EFG funding over the next four years, the Government has announced it will work with lenders to ensure criteria for the EFG is clearly understood as well as implementing measures that encourage smaller companies to apply for the scheme.
Welcoming the announcement, Feargal Sharkey, CEO of UK Music said:
“At last week’s CBI annual conference, the Prime Minister and Business Secretary both specifically identified the creative industries as one of the UK’s dynamic sectors for growth.
“While we were pleased with this acknowledgement of our potential, we are delighted that DBIS have recognised the perennial challenges facing creative entrepreneurs when attempting to gain access to finance – and particularly so when applying for Government-backed finance such as the Enterprise Finance Guarantee.
“For the sake of future innovators, we vitally need action to overcome this issue. The UK’s music industry consists predominantly of small and medium sized businesses. Clearly, if such entrepreneurs are to reach their potential, it is crucial that those administering schemes like the EFG can understand how their businesses operate.
“With the help of our members, we look forward to participating actively in this review in the weeks and months ahead.”
Carried out jointly with the Department for Culture, Media & Sport, the review will be carried out to a Budget 2011 timetable.