‘Bank of Manchester’ could spearhead SME loans

A ‘Bank of Manchester’ with £100m to spend on start-ups is one of a number of ideas put forward by Pro Manchester to help encourage small businesses and entrepreneurs overcome funding problems.

The body, a membership organisation for the financial and professional services sector, has drawn up a report on innovation and enterprise with 10 recommendations which it believes will help economic growth in the city.

It says around 80% of the city’s 100,000 registered businesses employ less than 10 people and are continuing to struggle with access to finance.

Pro Manchester says a Bank of Manchester could offer around 200 low interest loans a year, but the organisation envisages this would be funded by cash-strapped local authorities. The report warns that a similar idea in Essex loaned just £290,000 to 10 firms in two years.

The report, launched on behalf of The Association of Greater Manchester (AGMA) and the Commission for the New Economy, also suggests improving innovation “ecosystems” by providing more facilities such as Manchester Science Park as well as low-cost shared work space centres such as Manchester Metropolitan university’s Innospace to help fledgling businesses.

Pro Manchester is also proposing the creation of Centre for Business Angel Research (CENBAR) in association with leading business schools.

The body’s chief executive John Ashcroft said: “Over the past six months Pro Manchester has undertaken some great workshops with hundreds of financial, professional and business representatives across all sectors. 

“We have developed 10 key recommendations to ensure the Manchester region creates the right environment for entrepreneurs and SMEs to flourish and grow.”

Mike Emmerich, chief executive of the Commission for the New Economy, said: “This report that New Economy commissioned deals head on with access to start-up and growth capital, a major issue for our – and our competitor cities’ – most innovative entrepreneurs.

“The research is a timely contribution to Greater Manchester’s thinking on what forms of business support we should focus much more constrained resources on to help us grow our economy and create growth and prosperity.”

To read see:  http://www.pro-manchester.co.uk/innovationandenterpriseresults

Pro.Manchester is hosting a major conference on business and enterprise in March. See www.bpsconference.co.uk. For tickets call 0161 833 0964 or email bpsconference@pro-manchester.co.uk