Government Office North East, Mid Term Evaluation of the North East of England Objective 2 Programme
The Brief: We were commissioned by Business Link South Yorkshire (BLSY) and partner organisations to undertake a review of access to finance for SMEs within South Yorkshire. The study involved extensive consultation with national, regional, sub-regional and local organisations and individuals in the sphere of finance provision to SMEs. It also brought together desk-based and business case study research into the motivations and processes of SME take up of finance. The review assessed where the gaps in market provision of finance existed and made recommendations as to the future direction of access to finance public policy in stimulating the sub-regional economy.
The review found that there was a lack of a risk taking culture and the presence of inertia within South Yorkshire, especially in the traditional industries and made recommendations on ways in which investment readiness could be improved. In relation to the supply of finance, the review found that overall the balance of both the grant and loan funds between traditional and growth sectors sensibly reflected the sub-regional make-up of South Yorkshire. However, it was noted that some gaps did exist, primarily around pre-start (individuals), new product development (established businesses), support for start-ups, and risk capital in technology businesses. It also pointed to the need to boost R&D activity in particular. The report made more than 30 recommendations, grouped under 5 themes, including those around improving mutual understanding between the public and private sector supply of finance for the benefit of local businesses.
Sheffield