Sir Alan Sugar was recently appointed by the Government to act as a mediator between small businesses, government ministers and high-street banks to help encourage enterprise and stimulate lending to small firms, writes Kate Horstead.

 

The entrepreneur and star of BBC television programme The Apprentice , has agreed to become the Government's Enterprise Champion.

 

10 Downing Street representatives said Sugar will be advising the Government on how it can help entrepreneurs overcome problems such as access to finance, late payments and surviving the downturn.

 

Since being appointed on 5 June, Sugar has already announced plans to set up a panel to mediate between banks and small businesses in a bid to encourage more lending to viable firms.

 

Federation of Small Businesses (FSB) spokeswoman, Prue Watson, welcomed his appointment. "Having a corporate mediator such as Sir Alan is a way of restoring the relationship between banks and small businesses," she said. "Sir Alan has proposed that he will teach bankers how to decide which businesses they should lend to, which will hopefully help viable firms get the lending that they need."

 

The FSB believes that Sugar is well-placed to understand the needs of small firms. "As a businessman himself, he will know what firms' problems are and be able to explain those issues to the banks," said Watson.

 

Although Sugar is known for his success in building several large corporations, his press spokesman defended his ability to relate to small firms, stating that he started up electronics manufacturer Amstrad with just £100 and a delivery van.

 

In response to a BBC journalist's question at a press conference as to whether he had been selected for the role as "window dressing" for the Labour Government, Sugar replied that it was a "nasty question".

 

"If you had done your homework, you would know I have been doing roadshows for the past ten to 15 years at universities and colleges, and listening to local business leaders about the challenges they face," said Sugar.

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