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Banks are failing to lend to firms which will drive the recovery, new report shows
A new report published today (7 June) by the Big Innovation Centre warns that innovative small firms – those most crucial to jobs and growth – are finding it significantly more difficult than their peers to secure the funding they need to grow*.
Over one in three innovative small firms that sought finance between 2010/12 did not obtain any of the funding they needed – nearly triple the rate of 2007/8 (see table). With innovative SMEs playing a crucial role in creating jobs and raising productivity, this highlights a systemic failure in the financial system that is holding back the UK economy.