So the latest idea floating around is to introduce negative interest rates to get banks to lend to businesses! Sorry for saying this, but it sounds like an idea thought up after a day spent at the pub. Whoever dreamt this idea has no real understanding of what affects SMEs and Entrepreneurs. The funny thing is that there is business finance available and it can be organised – just not at the same terms as 2007. But sensible deals can be found for business and property finance – I see it first hand, because we arrange it all the time.
What we find is that the classic shop owner and self-employed entrepreneur is not motivated to expand or start up a business because of the finance options available. Just think it through – wherever you turn there are negative stories – the Euro, High street closures, higher Tax, more red tape, H & S, more employment law, more competition and so on. By the time you have finished your breakfast and read the paper you are so demotivated that the last thing you want to do is to think positively about expanding your business!
So my humble advice would be to create opportunities for business people to do business; to feel confident about their business ideas and to feel confident about making investments because they see a future.
And if you are optimistic you will see a number of businesses who are expanding and growing who are doing very well in 2013.