Government to restore marketing funding to stimulate start-ups

Michael Fallon, business and enterprise minister
Michael Fallon, business and enterprise minister

Michael Fallon, the business and enterprise minister, claims the Government will reverse its clampdown on marketing investment to stimulate start up businesses.

The Department for Business, Innovation and Skills (BIS) will significantly increase marketing spend on initiatives including Start-Up Loans and the Seed Enterprise Investment Scheme as it changes its approach following significant spending cuts.

Speaking at the launch of the StartUp Britain bus tour and the Marketing Agencies Association-backed Marketing 4 StartUp Britain week, Fallon insisted the Government’s new approach is not an admission of a "mistake".

Fallon said: "Marketing is key to small business – when the Government started there was quite understandably a clampdown on some of the excessive advertising and marketing that we saw under Labour because we had to control costs.

"But now we understand there’s no point having really good government schemes unless you tell people about them – business wouldn’t develop products and then keep them a secret, so we are putting a lot more marketing spend behind our best schemes."

The Government will also continue to exert pressure on banks to take more risks on new businesses in order to emulate the entrepreneurialism of the United States, which has easier access to early years funding.

Fallon believes Britain could have had its own Facebook or Google "if the banks had been more entrepreneurial five or ten years ago" and blamed the banks for blacklisting entire sectors.

He explained: "The banks found it easier to make money out of financial services rather than more traditional lending. That’s changing but it needs to change faster."

Some start up businesses based around the Old Street roundabout have questioned the Government’s support for Tech City and believe there is a lack of action and too much PR spin, an accusation Fallon denies.

Fallon said: "It isn’t PR - there’s a lot of hard government cash going into sorting that roundabout out. Tech City has grown in the best entrepreneurial tradition [and] it wasn’t planned by government.

"Government should be wary of planning enterprise. The great strength of enterprise is that it is self-driven, but we are spending a lot of money on the infrastructure."

In order to drive awareness of the support for start ups, the Government will integrate the materials it used from its Great tourism campaign into British-based projects.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers