More than half of the SMEs within the UK have revealed they are finding it hard to access funding which is needed to help their business grow, according to research conducted by Liberis.
It has been pointed out that the main reason for this halt is the lack of knowledge they have regarding their funding options. As confidence drops within the SME economy, their concerns are increasing over the value of sterling.
SMEs are the lifeblood of the UK economy, in fact, they currently account for £200 billion each year which is expected to grow by approximately 20% by 2025. However, with the struggles they are experiencing when accessing funding this plan may be delayed or unachievable.
The research found that 62% of UK SMEs have admitted they need funding to help their business grow, 57% explained they are none the wiser when picking a provider while 53% said they didn’t have a specific amount in mind when searching for funding.
When digging deeper, the research discovered that 22% of SMEs need the funding to keep their business trading as normal and 5% need the funding to last their first year. The rapidity of funding has been highlighted as a vital point to help achieve the growth needed.
The research also found that 10% of SMEs are looking into crowdfunding as an alternative to funding.
CEO of Liberis, Rob Straathof comments;
“These findings have opened our eyes to a lack of confidence and awareness among SMEs in how to correctly secure the funding they so desperately need. Funding will continue to be a hot topic for the small business community, but urgent action and collaboration is crucial to prevent resulting damage to the UK economy. Without sufficient financial education and support, the UK’s business ambitions will be severely affected but by ensuring they have the correct financial understanding, we can help secure and strengthen their livelihood; fast-tracking their ambitions.”
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