Member Article

AIM Chief visits North East

One of the most senior figures in the London Stock Exchange has visited the region to encourage the regions business advisers and investors to consider alternative sources of finance.

Speaking at an event organised by North East Access to Finance, Marcus Stuttard, head of Alternative Investment Market (AIM) encouraged management teams to find out about the range of finance options which are available to them, and how they can benefit from them.

AIM is the London Stock Exchange’s international market for smaller growing companies and a wide range of businesses, including early stage venture capital backed and more established companies, join it to seek access to venture capital.

Speaking at the event, Marcus said: “Our key objective is to get businesses to think more widely about the different types of fiance which are available, and to take a long term view of that.

“Whether they are going from seed capital at the start up phase or are scaling upwards. the next source of finance is always on their mind, and businesses must learn to structure themselves from the outset in a way which enables them to make the most of this.

“It’s really about the long term education on finance available, and then the pros and cons of each option.”

In the course of his speech, he stressed the positive attitude common to many small and medium businesses, but also noted the lack of growth aspirations. Increasing numbers of businesses are being cautious due to the financial landscape but Marcus believes that this could present them with new and beneficial opportunities for growth.

“If we are looking for the positives of the current economic climate, intermediaries as well as management teams are being forced to think more widely, and that certainly is a benefit.

“We’re already seeing changes, and I think they will continue over the long term to have a significant impact, and businesses have already begun to see the capital benefits of flotation on the public market, but also of all the other spin off benefits including credibility and profile.”

He went on to praise the Government, who have produced a White Paper to reconsider legislation for small and medium businesses, in a move which will drastically simplify the funding landscape.

“The Government is acutely aware of the need to remove red tape across a number of areas, but by doing this they will provide an environment of certainty so businesses can get on and plan for the long term.

“As well as targeted tax breaks, this will make sure that entrepreneurs and high net worth individuals will continue to reinvest and by looking to each of the different areas, they Government is signalling that it is taking a much more joined up approach.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .