According to the Federation of Small Businesses, as of 2014 there were an estimated 5.2 million small businesses in the U.K., employing 25.2 million people.
With a general election on the horizon in the U.K., in May, the business vote is keenly targeted by Britain's political parties, including the governing coalition made up of the Conservatives and Liberal Democrats, to whom Cable belongs, and the more left-wing Labour party.
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Speaking to CNBC from the London Stock Exchange, where the exchange was celebrating the success of 1,000 small and medium-sized businesses in the U.K., Cable called SMEs the "bedrock" of the U.K. economy and said they needed more support. "They're the people who determine whether we have a recovery or not," he said.
Showing that things are heading in the right direction, lending to SMEs rose 9 percent in 2014 from the previous year, according to the British Banking Association's latest data, with £29.2 billion of new SME borrowing approved in 2014.
Cable added that increased regulation in certain types of online fundraising for businesses, such as crowdfunding -- which raises money from a large number of people usually on the internet -- had also helped to decrease the risks for investors.
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"The last thing we want to do is create another bubble," he said, "(but) these days we're dealing with online technology and lending will increasingly take that form."