Paul Druckman finds himself agreeing with the CBI on its new focus on medium enterprises.
'Britain's forgotten army' - this couldn’t be a more accurate description by the new Director General of the CBI, John Cridland, who makes a strong case for medium-sized business. And quite rightly so. David Cameron’s speech has been much publicised in the media, with its focus on enterprise as the catalyst for UK growth moving forward. But as Cridland points out, investment is usually focused on small and large organisation, with little mention of those in between.
It’s the mid-sized organisations where focus is required for they are the bedrock of this country and it is here, as the Director General rightly says, that the majority of growth and jobs are likely to be found. However, these organisations need support including access to capital. If the Prime Minister wants to see the return to prosperity that he desires, he should take heed of the CBI’s advice.
These are themes that M Institute has focused on many times previously. For a quick summary of our views on policy issues relating to medium enterprises, please read here. This particular blog item was written before the global financial crisis but points to many of the issues that make it so hard for medium enterprises to raise capital, particularly when the banks could not see the kind fo return they could get from real estate (pre-2008) and now can't see the point of lending.
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