FURTHER FINANCIAL CO-OPERATION REQUIRED

SIR Reg Empey, Minister for Enterprise, Trade and Investment, has called for greater co-operation between Northern Ireland's new economic development agency and financial institutions.

The Minister said: “Creating an entrepreneurial culture in which small to medium sized businesses will flourish would require increased co-operation”.

Welcoming the publication of 'Financing for Growth', a research report into existing funding sources for small to medium sized enterprises by the Ulster Society of Chartered Accountants, Sir Reg said: “This study provides essential information that will influence the work of my Department and the new Agency as we seek to shape initiatives to drive the economy forward at a faster pace.

“Promoting an enterprise culture, a key commitment within the Executive's Programme for Government, requires a business environment which fosters smaller companies and encourages risk taking by entrepreneurs, particularly in knowledge-led areas such as product innovation, branding and export marketing.

The Minister said the report's research and recommendations would be studied closely within the Department and by the economic development agencies.

“The banks and other financial institutions are making an important contribution to overall economic growth. However, the new knowledge economy is changing the way business is done and the requirements of companies for funding.

"While government is correctly moving away from grant-based support towards schemes which encourage product innovation and training, we must ensure that entrepreneurs with viable projects have access to the funding they need for success.

Commissioned jointly by IDB and LEDU, the report revealed that banks were able to provide funding at competitive rates of interest compared to elsewhere.

However, the study identified gaps in the provision of small amounts of venture capital and Sir Reg indicated there were likely to be a number of further initiatives to help address this shortcoming.

The Minister said the report also made a number of important recommendations for further consideration by the Department to promote start-up businesses. (SP)