TIGA calls on Government to improve access to finance for games developers

By May 27, 2011 Press Releases

TIGA,the trade association representing the UK games industry, said today that the
Government needed a coherent strategy to improve access to finance for the video
games industry and other creative sectors. TIGA made the comments following the
Government’s publication of new research showing that creative content sectors
are more likely to have their applications for finance rejected by finance
providers compared to other businesses with similar risk profiles.

The
research was published by the Department for Business, Innovation and Skills
and the Department for Culture, Media and Sport. The statistical analysis was
independently undertaken by Dr Stuart Fraser of Warwick Business School and the
qualitative fieldwork was undertaken by IFF Research.

Dr
Richard Wilson, CEO of TIGA, said:

“TIGA represents many start-up and small
developers and so we have long been aware of the difficulties that they face
when trying to access finance. It is excellent that this Government published
report recognises this fact.

“On average, creative industry businesses
such as games developers are younger than other businesses and have fewer
tangible assets. This makes accessing finance more difficult. TIGA’s most recent business opinion survey
confirmed that access to bank finance remains problematic. Over two fifths of
104 games businesses reported that there was no difference in their business’s
ability to borrow from the bank when compared to six months ago, and 14 per
cent said that it was now even more difficult.

“The Government must now work with the games
industry and other creative sectors to develop a coherent strategy to improve
access to finance for our industries.

Jason
Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion, said:

“I am pleased that this Government published
report recognises that video games developers and other creative sectors find
it relatively more difficult to access finance than comparable businesses in
other sectors.

“TIGA intends to encourage the Government to
adopt policies including Games Tax Relief, enhanced R&D tax credits,
prototype funding and the establishment of a Creative Content Fund. These
measures will enable the UK video games industry to grow, which in turn will
help the wider UK economy.””

Ends

Notes
to editors:

About
the research:

The
Government published research can be accessed at:

http://www.berr.gov.uk/assets/biscore/enterprise/docs/a/11-898-access-to-finance-for-creative-industry-businesses.pdf

Link to appendices and other BIS SME
research:
http://www.bis.gov.uk/policies/enterprise-and-business-support/analytical-unit/research-and-evaluation/globally-competitive-business-environment

About
TIGA:

TIGA
is the trade association representing the UK’s games industry.The
majority of our members are either independent games developers or in-house
publisher owned developers.We also have games publishers, outsourcing
companies, technology businesses and universities amongst our membership. TIGA
was awarded ‘Trade Association of the Year’ and the ‘Member Recruitment Award’
at the Trade Association Forum Best Practice Awards 2010. TIGA has also been
named as a finalist in the 2010 Chartered Management Institute (CMI) National
Management and Leadership Awards in the category of ‘The Outstanding
Organisation of the Year Award (SME)’. TIGA is an Investors in People
organisation.

TIGA’s
vision is to make the UK the best place in the world to do games
business. We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members. This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their
businesses, including a reduction in costs and improved commercial
opportunities.

For
further information, please contact Dr Richard Wilson, TIGA CEO on 07875939643:
or email
richard.wilson@tiga.org; or contact David Hodges on 02070911653

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