Partner Article

Small businesses “weakened” by funding changes

Recent changes to the government’s Solutions for Business portfolio have been criticised by small businesses in the North East.

The Department for Business, Innovation and Skills has announced that Innovation Vouchers will now only be used to access support from publicly funded research institutes and not be able to be delivered by small businesses.

The Federation of Small Businesses has hit back at the announcement, saying that small businesses are keen to continue innovating to survive and these changes will reduce their ability to do so.

Gary Thompson, North East Policy Unit member for the FSB, said: “As just one of many of the SME innovation support companies this region has, I cannot understand the logic of changing the rules yet again and allowing the well established academic centres in the region to be the only drivers of innovation.

“It has been proven through FSB research that innovation comes from small business and the ideas of workforce. I have been contacted by numerous service providers on the Innovation Register concerned at what they see is an attempt to stifle innovation in the region and slow the economic growth which is so much desired by us all here in the North East.

“How can this be a fair and just decision when it alters the level playing field in the favour of already publicly funded bodies? No wonder Santa still has a sleigh pulled by reindeer, we cannot be innovative enough to help him develop as our hands are yet again tied by the red tape which is not giving us a Happy Christmas at all.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .