Need For Business Capital In All Of UK
Written by JDPGlobal | Monday, 16 January 2006
Business experts from the West Midlands area believe that it should be the new business capital in Britain. They wish to lure the entrepreneurial talent towards the area. Experts feel that West Midlands has the infrastructure and the necessary conditions to invite private investors. However, more funds would be required to support the new businesses that would come to the region. In spite of the five hundred million pounds raised by some of the companies, many still require more funds. Moreover, statistically the chance of a business to get the capital needed for the company is one in two thousand.
In addition to this, the distribution of funds is mostly in favour of London and experts feel that London is the source of capital. Many feel that West Midlands has the capacity to be called the financial capatal of UK. A report on the venture capital provision in UK says that 64 per cent of funds that are meant for small start up business are in London. While in West Midlands it is only three per cent and East Midlands it is one per cent while Southwest has two per cent. The report also mentioned that fund managers cannot travel long distances for small deals.
This suggests that the prospects of small businesses are greater in London and the Southeast. However, some still feel that the West Midlands can still attract the investors. The West Midlands has a growing professional service sector who are skilled in working with new businesses. It also has a good networking infrastructure. The West Midlands is a hotbed for investments as it has the right kind of professional people and is known as the thousand trades city. Entrepreneurs in the West Midlands are ready for new investments.
The report mentioned earlier, said that public sector has important contribution in the venture capital sector. About 26 per cent of the small investments are made by the public sector. The investments from the public sector are welcomed but it is important to divert the private investments out of London towards West Midlands.