Finance Monthly September 2019 Edition

18 www.finance-monthly.com FINANCE & BUSINESS - TRADITIONAL BANKING IS FAILING UK SMES TRADITIONAL BANKING IS FAILING UK SMES Reece Mennie, CEO of Hunter Jones ReeceMennie, the CEOof the UK’s fastest-growing investment introducing firm – Hunter Jones, is looking at how and why traditional banking is failing British SMEs. It’s no secret that small and medium- sized enterprises (SMEs) are the lifeblood of the UK’s economy. Representing 99.9% of all businesses, they employ 16.3 million people and have a combined annual turnover of £2 trillion, which accounts for 52% of all private sector turnover. Whether driving growth, opening new markets or challenging the status quo through a new product or service, SMEs are essential to UK plc’s growth story. Yet the future for some of the UK’s boldest entrepreneurs is not a rosy one. The Department for Business, Energy and Industrial Strategy (BEIS) estimates that the number of SMEs fell by 27,000 between 2017-18, and there is no evidence to suggest an upturn going forward. Growth forecasts are dismal, and sterling is in decline. As with a lot of things, it is Brexit that is causing the most concern, with many businesses unprepared for the impact of a ‘no-deal’ on their balance sheets. The Government is trying to mitigate the dangers. Sajid Javid, who was recently appointed as the Chancellor of the Exchequer, has set aside £2.1 billion to prepare for a no-deal, of which £108 million will be made available to “promote and support businesses to ensure they are ready for Brexit”. Given the contribution UK SMEs make to the economy, this appears a paltry sum. We also have yet to understand how the money will be used, the means by which it will be distributed, or when it will be made accessible. So if the Government’s efforts to empower our SMEs are lacking, who can they turn to? Reece Mennie CEO of Hunter Jones www.hjinvest.com