As we enter 2018 it’s been revealed that 84 per cent of British entrepreneurs, plan to raise multi-million-pound investments. However, new research has revealed that growing businesses in the UK are still struggling to access funding to make their dreams a reality.
A study from Close Brothers Group found that just 41 per cent small business bosses can access capital through their preferred funding route. Of those that did receive funding, 34 per cent felt that it wasn’t enough to finance their investment plans and 24 per cent believed the funding was too expensive.
Surprisingly, 20 per cent of those asked said that the capital they had managed to raise was not suited to their business and 26 per cent of those who accessed funding admitted being unsure how to use it.
Adrian Sainsbury, Banking Division managing director, Close Brothers commented:
“Low productivity hinders economic growth and improving productivity is vital, particularly as the UK prepares to leave the EU. Given their importance to the economy, SMEs will be central to potential productivity gains.
“SMEs need access to the right finance and support to invest in training staff or adopting new technologies so increasing awareness of financial options is crucial. Bespoke funding solutions which align to specific needs and growth plans are always preferable to a one-size-fits-all approach.”
Close Brothers questioned nearly 1,500 SME decision makers across the UK, France and Germany.
German SMEs were better able to access funding than their UK peers according to the research, while French SMEs were less able to do so.
Just 33 per cent of French SMEs were able to access capital through their chosen funding route, compared to 47 per cent of German SMEs.