Reshaping the UK Economy proposes a timely, efficient and smart way for government to support and stimulate investment in high-growth companies.
- The challenge for the UK is supporting the continued growth of innovative, high-growth businesses: doing so could prove invaluable for the economy.
- Venture-backed businesses are disproportionately important for growth.
- The credit crunch has hit the venture-capital business hard; early-stage finance has been particularly neglected.
- However the Government should be cautious in intervening: there is still no consensus as to what constitutes an effective model of government intervention.
- We recommend establishing a public-private fund of funds.
High-growth, entrepreneurial businesses are essential to the UK's emergence from recession.
But their success is dependent on several factors, one of which is the availability of appropriate finance. The availability of growth finance has declined drastically in the credit crunch, and too little has been done to revive it.
This paper sets out a proposal for the Government to support and stimulate investment in high-growth companies.
Yannis Pierrakis and Stian Westlake