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Crunch slowing SME growth

Oct 26 2007

The credit crunch may be causing untold difficulty to entrepreneurs hoping to fund their own small enterprises, it has been claimed.

According to Eastside Consulting, lenders tightening their belts may make it harder for small firms to get their hands on crucial finance.

Commenting on the crunch and its impact on SMEs, managing director of Eastside Consulting Richard Litchfield says: 'More stable businesses with stronger cash flows and asset bases will continue to be able to access finance - as they always have done.'

He added: 'But it will probably be more difficult for start-ups, and especially for those entrepreneurs that don't have personal security or guarantee available.'

Meanwhile, entrepreneurs have received a welcome boost with the news that that cost of a European patent is set to be halved.

It is thought the changes could save firms up to £10 million each year.

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