This week saw HSBC’s announcement of a £3.4bn fund to help small and medium businesses. The Mail on Sunday reports that the announcement comes after a week during which all the High Street banks made pledges to support small businesses through the difficult economic climate. The Sunday Telegraph also follows this story, noting that HSBC has said that the money will be made available to ensure SMEs continue to have access to credit through the financial and economic crisis. The Mail on Sunday reports this week that entrepreneurs are shelving plans to sell their businesses, as they feel they are the most qualified to bring their firms through the economic crisis. A survey by Barclays Wealth Management showed that most business owners believe their tenacity and risk-taking will guide them out of a downturn.

  Small businesses were enraged to find out this week that companies that take advantage of the flat rate VAT scheme will keep a lower proportion of the VAT they collect from customers, Growing Business reports this week.  An Inland Revenue spokesperson has said that ‘some will keep less of the VAT they collect from their customers, but on top of paying less VAT they will also benefit from paying the lower rate on their expenses.’   Is your business feeling the effects of these issues? Leave a comment and let us know.    

Other News:

The Mail on Sunday (07.12.08) – Top prize goes for risking everything  

The Mail on Sunday (07.12.08) – Pain grows for small builders  

Real Business (04.12.08) – All female angel network launches  

The Sunday Times (07.12.08) - Etailer is judges’ choice as Britain’s best entrepreneur