According to research by fintech firm iwoca high street banks are proving reluctant to help SMEs with funding for innovation and development.
As a result the FSB (federation of small businesses) has called on the Government to support small enterprises in adopting new technologies.
The FSB says that one in three small businesses are being offered interest rates of over 11%.
This, it says, is contributing to a rise in insolvencies with an estimated 70% of medium-sized firms expected to experience debt-servicing distress.
The organisation’s report “The Tech Tonic,” argues that “affordability remains a major barrier to innovation, with the average cost of introducing new technology for small firms being £27,000 over three years”.
Both the FSB and the CBI (Confederation of British Industries) argue that SMEs should be helped by the Government addressing high interest rates, inflationary pressures.
The FSB wants to see over half of direct R&D funding allocated to SMEs and establish a tax-relief scheme for businesses actively trying to enhance their products and processes.
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