financing smaller businesses
it avoids my being bamboozled by March that 1300 eligible loans worth
scientists.” £145 million were being processed but
Skills fit for purpose
The companies that Richard Steph- the operative phrase at the time there is An economy in recession demands a
enson manages or chairs are in the fortu- ‘being processed’. particular set of skills. Entrepreneurial
nate position of not requiring the constant “Small businesses need that assist- flair has to be tempered with caution and
support of the banks: cautious growth of ance right now, and steps need to be a superior analysis of market conditions.
cash-generating businesses has probably taken to speed up the process through When Yudu was created in its present
avoided that scenario. closer collaboration between the banks form back in 2007, the economy was
But as a broadly-based observer of the and the Government.” growing, and ‘green’ issues were of inter-
UK smaller business sector, he can take a Surely the counter to that argument is est but not sitting quite so centrally in the
true expert witness’s view of the market- that the Scheme is distorting normal business consciousness.
place today. market forces: if a business is so depend- The fact that the company is respond-
ent on bank support, its business case ing to that changing marketplace both
Programmes need momentum
must be highly questionable. in terms of the economics of its offering
Richard Stephenson rejected that view and the pressures on carbon manage-
While welcoming many of the initiatives of the situation, drawing on his own ex- ment, highlights an inevitable truth
to assist smaller businesses, Mr perience: “In my work advising compa- about Yudu. It no doubt has an outstand-
Stephenson maintains that programmes nies and helping them develop business ing leader whose finance has funded the
such as the Enterprise Finance Guaran- plans, I find many instances of where a development of the company.
tee Scheme (EFGS) – discussed at perfectly good business model is com- But management is about people, and
greater length on page 70 of this edition ing unstuck in the present climate. Yudu could not be where it is today with-
– have not gained sufficient momentum “In more normal times, a bank would out the innate technical and commer-
to deliver what was intended of them. have increased its customer’s overdraft cial expertise of all those involved.
“The time being taken to process ap- to cover working capital requirements. That does not diminish Stephenson’s
plications is far too long. Companies who The banking sector is not inclined or able contribution to the company. Quite the
really need that assistance cannot wait to assist without onerous personal guar- opposite: it has been the lever system from
the three to four months that we hear is antees from directors and a long lead which Yudu has been able to secure its
being taken for a decision. time before they can gain admission to economic advantage. That collective ex-
Lord Mandelson was keen to show in the EFGS.” pertise is what you see on the screen. §
The fact that the company is responding to a changing market highlights a truth about Yudu.
It no doubt has an outstanding leader who has funded the development of the company.
86
86
The Informed Executive
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