Small firms such as those putting the West of England in the vanguard of UK innovation still lack adequate access to finance, Business Secretary Vince Cable admitted today on a visit to the region.
He said he was determined to get the high street banks to lend more to businesses while also encouraging less established and new entrants to the business finance market.
He also praised the West of England Local Enterprise Partnership (LEP) which covers Bath and North East Somerset, for its partnership approach to economic regeneration.
Speaking after meeting the LEP board and touring the Engine Shed innovation hub in Bristol, Dr Cable said he was impressed with the region’s creative businesses. 
But he added: “They still face challenges such as raising money.
“The biggest problem is raising funding because the banks have become very conservative and we don’t have an effective venture capital industry in this country.
“That is why I am launching a business bank which will encourage angel investors and other forms of lending. I am also pushing our banks to lend more.”
Speaking about the LEP, he said it was a true partnership between local authorities in the West of England, business organisations such as the CBI, chambers of commerce and FSB (Federation of Small Business) and the higher and further education sector.
The Government had got to allow LEPs to make decisions at a local level to encourage growth and private sector investment.
“We can’t run everything from Whitehall,” he said.
Pictured: Vince Cable at Bristol's Engine Shed with director Nick Sturge
