We have heard so much about the importance of high growth companies to the economy going forward – 6% of SMEs will deliver in excess of 50% of new jobs over the coming years. Well my question is, are the banks on board to support ambitious individuals with big dreams and good ideas…..yes but…really on board? We hear that the banks are pushing out money to entrepreneurs but at what cost. Well my anecdotal evidence is…the money is available but at great personal exposure to the entrepreneur. The PG requests and unrealistic demands on individuals with dependants still astounds me.
High growth often equates to high risk. If we are going to encourage the next generation of significant employers we must ensure that there is balanced risk on both sides. At the moment what I see is this – the bank will provide the money as long as your house and all other personal assets are put on the line. How many people are willing to do this? My experience is very few.