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Debate continues about the importance of small and medium-sized businesses for economic recovery and the willingness of banks to lend to them. Director Andrew Freeman's report, 'Finance for Growth, Challenging myths about the funding of small businesses' published by Demos Finance in 2013, argues for two fundamentally changed assumptions. First, rather than think small, we should think growth. If most SMEs have no immediate ambition to grow, we should focus our efforts on those businesses with the will and potential to deliver significant growth in the future regardless of size. 
Second, we need to look outside traditional bank lending to address this challenge and devise a funding environment able to support the risks associated with innovation and start-ups. Growth policy should be directed away from subsidising the SME sector as a whole towards targeted interventions aimed at those whose ambition is for growth and innovation rather than ongoing stability. These interventions should aim to improve business education and mentoring of existing businesses that have a propensity to grow, as well as develop alternative finance markets suited to funding growth risk.