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'Investment Readiness': A Critique of Government Proposals to Increase the Demand for Venture Capital

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  • Colin Mason
  • Richard Harrison

Abstract

Intervention to address the equity gap has traditionally concentrated on supply-side initiatives. However, it is now recognized that demand side deficiencies are a significant reason why small and medium enterprises (SMEs) are unsuccessful in raising venture capital. This reinterpretation is reflected in recent documents from the UK government - most recently a Consultative Paper from HM Treasury and the Small Business Service - which have highlighted the need for SMEs to become 'investment ready' in order to take advantage of the increased supply of venture capital that is now available. This article provides a critique of the Consultative Document's definition of investment readiness and outlines a programme to enhance investment readiness amongst SMEs.

Suggested Citation

  • Colin Mason & Richard Harrison, 2001. "'Investment Readiness': A Critique of Government Proposals to Increase the Demand for Venture Capital," Regional Studies, Taylor & Francis Journals, vol. 35(7), pages 663-668.
    • Handle: RePEc:taf:regstd:v:35:y:2001:i:7:p:663-668
    DOI: 10.1080/00343400120075939
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    References listed on IDEAS

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    1. Lisa Feeney & George H. Haines & Allan L. Riding, 1999. "Private investors' investment criteria: Insights from qualitative data," Venture Capital, Taylor & Francis Journals, vol. 1(2), pages 121-145, April.
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