Britain is one of the most creative and innovative Countries in the World, yet with all the extensive Government support available, why are so many innovative projects still failing to obtain funding?
On first glance the list below appears to the casual observer to provide a nice clean flow of grants for each stage in taking a new product from initial concept to shop shelf. However, hiding within this flow between 3 & 4 is a crippling ‘Catch 22’ capable of sending even the most promising of projects into the Abyss by preventing access to the EFGS, which in turn, when an application is turned down, creates a false impression that there is something intrinsically wrong with the Project, People or Proposition rather than the Support System itself.
1. Smart - Proof of Market Grant Up to £25,000 Available
2. Smart - Proof of Concept Grant Up to £100,000 Available
3. Smart - Development of Prototype Up to £250,000 Available
(Catch 22 - Buyers 'Cannot' purchase off 'Prototypes')
(Catch 22 - Banks and Investors will not lend without 'Orders')
(Catch 22 - Production Quality Samples are now required to obtain 'Orders')
(Catch 22 - Without 'Orders' you CANNOT qualify for No 4,. EFGS Funding?)
4. Enterprise Finance Guarantee Scheme (EFGS) - Up to £1,000,000 Available
Leaving this issue unresolved poses the question; Why make collective Grants of up to £375,000 of tax payers money available for a Project to reach Prototype stage only to leave it exposed to an issue that prevents access to the EFGS funding needed to take it any further?
The ‘Catch22’ explained; Due to the global economic condition even Private Equity Investors now follow the Banks in refusing to lend until a Project can show actual Orders placed for its products (Proof of Income). Buyers however CANNOT Order off Prototypes and so demand sight of Actual Production Samples before they can place those Orders (Proof of Quality).
This creates the proverbial ‘Catch 22’ scenario because the Projects need the Funds to make the Tooling - to get the Samples the Buyer demands - before they can place the Orders the Bank demands - before providing the Funds. As you can see, once a Project falls into this trap there is rarely a way out!
We the undersigned call upon the UK Government to introduce a new ‘TOOLING/SAMPLE’ Grant to bridge this crippling 'Catch 22' funding issue once and for all.
The Grant will be used solely to pay for Production Tooling and the First Production Run, the criteria for eligibility being that the recipient can provide genuine evidence of Customer/Buyer interest in stocking/purchasing the products for which the Grant is being applied to. Funding will be paid back to the Grant Lender from the sales of that stock or from ongoing sales from the resulting business behind the new product.
Once 100,000 Signatures have been obtained, this Petition will be sent to the UK Prime Minister on behalf of all Inventors and Entrepreneurs across the United Kingdom.
The INTRODUCTION OF A NEW TOOLING/SAMPLE FUNDING GRANT petition to UK Prime Minister was written by 4octopus.com and is in the category Business at GoPetition.