Entrepreneurs are reporting stuttering signs of life in the private equity and venture capital (VC) markets that could potentially provide a much-needed injection of capital into struggling small and medium-sized enterprises (SMEs).

Paul Caplin, chief executive of Caplin Systems, a financial services software company, said he had been inundated with inquiries. “I receive a seemingly endless stream of calls from VCs and private equity firms eager to hand over some of their money,” he said.