First published in 1997, this volume investigates the important economic issue of small business finance. The inability of small firms to acquire equity finance is believed to be an important factor in the UK’s continued relative economic decline. Throughout the post-war period both Labour and Conservative Governments have recognised this and devised micro-economic policies to address the issue. In this book the author assesses the effectiveness of these policies, particularly focusing upon the past 20 years when policy has been accompanied by the development of the UK venture capital industry.
The author concludes that government policy has been largely unsuccessful in bridging the equity gap, but that the problem could be addressed effectively if only lessons were learned from the past. This book provides those lessons, and is particularly timely given that the new Labour Government is currently reviewing policy in this area.
Table of Contents
Part 1. Government and the UK Equity Gap. 1. The Financial Sector and Relative Economic Decline in the UK. 2. Government and the UK Equity Gap Since 1945. Part 2. The Comparative Performance of Government Policies to Bridge the Equity Gap. 3. Labour’s National Enterprise Board. 4. The Conservatives’ Business Expansion Scheme. 6. Further Evidence on Government Policy to Bridge the Equity Gap. Part 3. Conclusion. 7. Conclusion.