Many entrepreneurs encounter a huge range of obstacles when they’re looking to start up a new business venture. However, research by Dell has shown that some of the biggest obstacles are often access to funding and access to technical expertise. Many businesses will be well aware of the difficulties of getting access to funding, but for start ups it can be even trickier.
Lack of funding was overall the biggest barrier to start ups getting off the ground, with 33% of businesses saying it was a big obstacle to their initial growth. Nearly half – 43% – said that they had to approach friends and family as the key source of their business funding. 20% also had to dip into their own personal savings; only 12% were able to secure funding through bank business loans, with a further 9% securing funding through venture capital firms.
While many businesses do need to brush up on their knowledge of business finance options, it is overwhelmingly access to finance rather than knowledge that is holding business back. While 27% said they wished they had greater knowledge of business funding methods while trying to start up their business, a bigger priority for many as how to accelerate growth and grow a business once it was initially off the ground.
Technical expertise was also a trend that the survey uncovered. Understanding technology is a key area for many looking to start a business – 60% saw IT investment as worthwhile, but 1 in 5 viewed lack of technological expertise as their greatest hurdle.
While we can’t really help with technical expertise, invoice finance can really help with the initial – and ongoing – access to finance. You can get access to funding as soon as your business starts to make sales, helping to increase growth right from early stages of start ups right through to the big turnover of a medium sized business.