E-commerce minister urges software firms to tap DTI support funds
Douglas Alexander, the e-commerce Minister, has called on the UK's £22 billion software industry to take advantage of Government support for innovative, high-tech businesses and to make greater use of DTI funds. Mr Alexander made the announcement after his department conducted research which showed that companies have a much greater chance of success when they are helped in their early years.
The research found that three in four businesses that start in business incubation projects are still trading after five years, compared with only a third who start without support.
Mr Alexander said: "The UK's software and computer services industry is the second largest in Europe. Worth £22 billion a year, it already makes a valuable contribution to the national economy.
"Nurturing young and emerging businesses in the sector will enable us not only to maintain our pole position, but to ensure that software start-ups survive and thrive" - Douglas Alexander voices commitment to IT entrepreneurs
"The DTI assists a huge number of small and medium sized businesses through both financial and strategic support. But the software industry has had a greater tendency to go it alone.
"In many ways, this is of course, a mark of success. But by encouraging these businesses - both existing and emerging - to make use of the support on offer, we can help the software and services sector to do even better.
"As recent research demonstrates, nurturing young and emerging businesses in the sector will enable us not only to maintain our pole position, but to ensure that software start-ups survive and thrive. By embracing the support on offer, both new and established businesses will be able to spread prosperity and foster innovation."
The DTI said it hopes its business support schemes, including the SMART fund - which 'provides direct support to innovative companies seeking to exploit technology' - will allow the software and services sector to boost its contribution to the UK economy.