Entrepreneurs in the UK economy are continuing to struggle with finding suitable funding, new research has revealed. While nearly half of those interviewed (48%) would consider setting up their own business, 68% think it would be too hard to find funding to set up their new venture. This shows that not only is the funding landscape in the UK making life difficult for established small businesses, it’s also putting off potential growth from new entrepreneurs.
The majority think that the biggest barrier to setting up their own business would be securing funding, while 37% wouldn’t know where else to turn if the banks were unable to help. A further 40% of people would be put off from starting their own business due to the lack of information and guidance available on how best to start a new venture.
The report also revealed some surprising figures from established SMEs. a huge 79% of SMEs were not significantly aware of funding options outside the banks. 21% vindicate potential entrepreneurs’ fears, saying that lack of funding was their biggest barrier when getting set up.
This shows that the UK economy, and particularly aspiring entrepreneurs, need a bit of a shake up if we’re to achieve strong growth boosted by a wealth of new, innovative businesses. While the government has been puttin some real energy into enriching the small business sector, there’s still a long way to go.
However, all is not lost. There are many alternative funding options out there that just require a bit of leg work to uncover. Invoice finance is amongst the best options for start up businesses – as soon as you’ve got invoices, you can start factoring. This helps to boost cash flow in the early days, helping you get access to the funds you need to help your business to grow.