The government has welcomed a new report into the availability of funding for the growth of small business insurance holders.
Corporate finance expert Christopher Rowlands said his independent review shows there is a gap in the growth capital targeted at small business insurance holders and recommended that the government acts to stimulate activity in this sector.
Prime minister Gordon Brown revealed that a new fund could be established on the back of the report to ensure that small companies can access the capital they need to grow.
"Where there has been market failure in the past, our new innovation fund will provide support to high-tech start-up businesses growing to £1 billion as a fund over the coming years," he explained.
Mr Gordon added that a new growth capital fund could be launched to create a channel for private investors looking to finance small business insurance holders.
Earlier this month, the government announced a £1 million investment in a scheme from The Prince's Trust which helps young people turn their ideas into commercial opportunities.
