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Despite being one of the UK's success stories, and their worldwide reputation for innovation and excellence, creative businesses have often found it difficult to access capital to fund start-ups or second stage growth. This is particularly true for small and medium sized enterprises.
Types of Finance Available
Most businesses borrow from the high street banks to finance their set-up or expansion costs. But debt finance is not necessarily the only method of raising capital. Some businesses might consider opting for a Business Angel, typically private investors seeking investment opportunities. Venture Capital is an option generally for larger, more established, companies. Exceptionally, businesses might raise capital on the stock market.
But most creative businesses will be looking to the standard funding institutions and there are also a range of financial instruments, typically grants or loans, offered by the Small Business Service and the European Union that might be worth exploring further. The eight English Regional Development Agencies have responsibility for the new Regional Venture Capital Funds.
The Small Business Service in England has a range of finance schemes available in England and the EU. Different arrangements may apply in Scotland, Wales and Northern Ireland. Please check with your business support organisation.
Euro
The Euro has now been introduced in twelve countries within the euro area. The Treasury has produced a fact sheet on the implications of the euro for exporters, importers and businesses with European connections and businesses that supply multinationals. The fact sheet contains a number of case studies to help highlight how the euro might affect the creative business sector and how other businesses have responded to it. Fact sheets can be obtained at http://www.euro.gov.uk/
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