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Financial Support for the UK’s SMEs (Barclays)
Development Economics undertook research for Barclays which examined the potential economic output benefits and employment gains that could accrue to the UK economy if current perceived constraints on lending to – and borrowing by – small and medium-sized businesses (SMEs) were to be addressed.
The research found that:
– 30% of small and medium sized businesses have decided not to apply for a loan despite realising that it would boost their business. The figure rises to 39% for small businesses specifically.
– Removing the myth that banks don’t want to lend by making loans and overdrafts available instantly on smartphones could deliver an economic boost of 106 new jobs per day (+194,000 jobs by 2021) and £34.25bn of economic growth by 2021.
– In terms of the impact of new loans, manufacturing and professional services sectors should expect to benefit from the biggest economic boost by 2021, achieving an additional £1.18 billion and £1.11 billion each year, respectively.