Reported on Thu, 16 Feb 2006

Business managers nationwide are being urged to consider the benefits of a business loan, as a new report by MPs predicts trouble ahead for small and medium sized enterprises (SMEs).

The All Party Small Shops Group report, "High Street Britain 2015", forecasts that many high street shops will be close to going out of business unless they receive significant investment.

Nick Goulding, chief executive of the Forum of Private Businesses, which represents over 25,000 SMEs nationwide, has called on the government to sit up and listen to the report.

"The report is stark and compelling evidence that Britain is facing a defining moment in its retail history," he said.

"Its findings must not and cannot be ignored. Action is needed right here and right now to ensure small businesses can compete against the remorseless growth of the retail giants. The report rightly says that the loss of small shops will damage the UK socially, economically and environmentally."

Mr Goulding added that irrevocable damage could be done to high street shops if the larger retailers' rise continues unabated.

"Moreover it says that consumers and communities will suffer unless something is done to help independent shops compete. Restricted choice of products and shopping locations and higher prices are rightly identified as strong possibilities by 2015."

A low-rate business loan is a good way to invest in new areas and ensure the survivability of high street enterprises.

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