An autumn statement of the obvious….

I don’t know if George Osborne is on the right track. I am sure that there are things that he could and should be doing that he is not. However I don’t have access to all the information that he has, or have to deal with his pressures and responsibilities, so maybe I am not best placed to criticise.

Taking decisions based on available information and resources. The stark reality of management. The true test of mettle. The real definition of loneliness. A situation that the 4.8 million business owners and managers making up Enterprise Britain find themselves in time after time.

Not so our friends in the fourth estate. As I was following the statement online I was struck by the constant carping, criticising and point scoring that accompanied each announcement. No contemplation, no reflection, just instant negativity.

If ever the phrase “power without authority” had any meaning this would be a prime example of how it works. The media chatterers and twitterers have the power to mock, to criticise, to nit-pick. What we never hear is what would they do if they were in a position to change things. I suspect that put in that position most would run away from such a prospect.

Yes they say but we have a duty to report the news and to question and hold those in power to account. True, but in business it is drilled into us that criticism should be considered and constructive. And the line between reporting news and creating it is growing ever thinner.

Sympathy for George is somewhat tempered by the fact that he himself is guilty of the sin of soundbite criticism. However for those of us at the coal face attempting to create the wealth necessary to get the economy moving, the constant self-aggrandising negativity of financial and business commentators is annoying. We are under no illusions as regards how tough it is out there. We don’t need it shoved down our throat day after day.

Having said that what was there for businesses in last week’s Autumn statement? Probably not a lot, but let’s face it, whoever stood up in parliament this week was going to struggle. Easier finance for SMEs and incentives to start up entrepreneurs are helpful. The challenge for all involved will be to direct it where it is needed most and where it can be productive. The announcements on fuel duty, infrastructure projects and red tape seem to be moves in the right direction.

The stark truth though is that the one thing business needs at present is confidence. The confidence to invest in the future. The confidence to lend. The confidence to spend. And that is clearly something that the Chancellor cannot deliver on his own….

AIM and PLUS – The future beckons…

As 2009 continues to battle its way through snow, ice and the morass of gloomy economic statistics, two key elements of London’s financial infrastructure for smaller entities AIM and PLUS are both looking ahead off of the back of two contrasting 2008s.

For AIM the year ended on a somewhat low note with new admissions down on previous years and questions being raised about the suitability of the market for small cap shares. For PLUS based on 2008 the future looks extremely rosy, with admissions at a record level and their share trading platform going from strength to strength.

PLUS are old friends of ours and last year we ran two successful seminars with them and Orange Corporate Finance in Cambridge and Guildford . There is no doubt that PLUS is now a very serious option for companies seeking their first float and looking to raise funds for expansion.

But we support AIM too, and have viewed with interest a recent survey by top accountancy firm Mazars. The survey canvassed the opinions of both AIM quoted companies and a wide range of professional advisors and concluded that, whilst AIM had been tremendously successful in raising over £34 billion for companies from all around the world since its formation in June 1995, the market could provide more liquidity for companies if the market listed fewer but higher quality companies. With nearly 1,600 companies listed on AIM, over 60% of the AIM companies and advisors who responded to the survey said the sheer numbers of companies made it hard for individual businesses to raise their profiles and attract investors.

London needs both AIM and PLUS to give growing companies the best chance to continue to grow by issuing shares to a wider pool of investors. The challenge for both markets remains the need to create sufficient opportunity and liquidity to ensure that there is actually a market for those shares. Equally there is a responsibility for advisors to work closely with their clients in selecting the market that best suits them clients and give them the best opportunity to be successful. If this can be achieved then both markets can confidently move forward in the future, thus providing a much needed boost to our battered economy.