5.3 Venture capital
Why is it significant?
Innovative small businesses with the potential for high growth can make an important contribution to productivity growth. But these firms can only realise their potential if they have access to the appropriate level and type of finance.
	How does the UK perform?
	During 2003 the performance of the UK venture capital market proved relatively strong in the face of global economic uncertainty. On the proportion of venture capital investment to GDP the UK ranked first out of the fourteen European countries surveyed (chart 5.3.1).
	The UK performance in this area has improved since the early 1990s    (charts 5.3.2 and 5.3.3).