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FSB highlights benefits of loans
22/03/2007
The Federation of Small Businesses (FSB) has suggested that the Welsh assembly should move away from a business grant scheme to a repayable business loan model.
Spokesman for FSB Wales Russell Lawson thinks that the two financial options instigate different attitudes towards money, according to the Western Mail.
"Generally when companies receive grants they don't consider it their own money," said Mr Lawson.
"If they had to pay back a loan they would be more frugal in the way that they spend it."
The spokesman went on to say that financial mismanagement is the main reason businesses fail and the assembly needs to support firms in this area, as well as helping them develop.
Mr Lawson's comments follow the Welsh assembly's recent announcement that it is to reduce the number of business support programmes from 200 to no more than ten.
The FSB's 2007 National Conference and annual general meeting begins today in Belfast, running until Saturday March 24th.
Spokesman for FSB Wales Russell Lawson thinks that the two financial options instigate different attitudes towards money, according to the Western Mail.
"Generally when companies receive grants they don't consider it their own money," said Mr Lawson.
"If they had to pay back a loan they would be more frugal in the way that they spend it."
The spokesman went on to say that financial mismanagement is the main reason businesses fail and the assembly needs to support firms in this area, as well as helping them develop.
Mr Lawson's comments follow the Welsh assembly's recent announcement that it is to reduce the number of business support programmes from 200 to no more than ten.
The FSB's 2007 National Conference and annual general meeting begins today in Belfast, running until Saturday March 24th.