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        SMEs will have to be savvy to get funding

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          The economic downturn has put the kibosh on many small and medium-sized enterprises’ expansion plans.

          Many considering moving into offices in London and other major cities have put their plans on ice until the worst of the economic downturn is over – an understandable choice.

          The short-term prospects for the British economy do look fairly uncertain and, according to John de Groot, chairman of Success Strategy, many firms will struggle to get the funding they desire in the coming year.

          He said that an “ongoing reduction in the quality” of business support from Whitehall is the cause of the problems.

          “In particular, [the lack of support] will make it increasingly difficult for new start-ups to understand the requirements of putting together an effective proposal, including a business plan,” Mr de Groot said.

          But the news isn’t all bad for young entrepreneurs, as the downturn will also result in “an increasing number of potential new start-ups”. At the end of last year, prime minister David Cameron urged entrepreneurs to “make a job rather than take a job”.

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