Over one hundred documents are in the research database as the desk top research phase is completed. There is no shortage of information on innovation, enterprise, SME’s, venture capital, angel investment, venture capital and private equity plus the internet provides easy access to most of the data. 

Over 100 extracts, papers, articles and book references are included. The earliest document is the Macmillan report “Macmillan, 1931: Committee on Finance and Industry”. 

As Britain plunged into economic crisis in 1929, the Macmillan Committee, including John Maynard Keynes, was established to report on the deteriorating financial and industrial situation. The committee pointed out (amongst other things) the problem was not so much a lack of banking finance but a lack of demand amongst SME’s. Sounds familiar? 

The committee called for the creation of an intermediate bank to meet an equity funding gap providing mezzanine finance. In 1945, the Industrial and Commercial Finance Corporation (ICFC) was established by the Bank of England with funding from major commercial lenders to provide capital to small and medium-sized companies. In 1983 ICFC became Investors In Industry or 3i.

The ICFC was established to serve small and medium sized businesses through the provision of long term and permanent capital (typical investments of £5,000-£200,000) but by 2000, the 3i had outgrown the role.

So much so that in November 2009, the Rowlands report talked of an equity gap and the need for an intermediate institution providing mezzanine finance. The difference in the Rowland Report – there was no mention of the Gold Standard. 

So what goes around comes around. Anyway back to the research, the desk top research is finalised the questionnaires are returning and the workshop season is just about to begin. It is going to be an interesting report on Innovation and Enterprise in Greater Manchester. 

The views expressed are my own and in no way reflect pro.manchester policy. In no way should the comments be considered as investment advice or guidelines or reflect political bias. UK Economics news and analysis : no politics, no dogma, no polemics, just facts. JKA is a visiting professor at MMU Business School, with a PhD from Manchester Metropolitan University, educated at the London School of Economics and London Business School An economist and specialist in Corporate Strategy, JKA is a part time lecturer with the International Manchester Business School MBA programme.