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Lack of start-up funding hits UK SMEs
Reported on Mon, 31 Jul 2006
New small businesses in the US receive ten times as much financial help from the government than their UK counterparts, new research reveals.
Small firms in the UK are being failed by the government when it comes to finances, according to a report by Cambridge University's Centre for Business Research.
David Connell, author of the study, said that schemes in the US, such as the Small Business Innovation Research programme, that draws on government budgets to provide generous start-up grants worth over $2 billion (£1.1 billion) a year.
"Through such mechanisms, early stage US businesses get access to government funding for research and development, which is at a level significantly larger per company than UK firms receive," he said.
Small firms in the UK are increasingly turning to internet banking to make ends meet, as they search for the best deals for business loans and tailored business banking accounts.
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