According to new research, many companies are still worried about long term growth prospects, despite the economy narrowly avoiding the triple-dip recession. Many more firms are looking into alternative funding solutions including crowd funding and invoice finance. A new index from Smith and Williamson, the Enterprise Index, has revealed some drops in confidence but that there is positivity out there.
The first Index was carried out in January this year – it recorded a positive outlook as far as the economy, but the most recent one has seen a slight dip in the respondents’ optimism about the UK business environment. One of the biggest concerns from respondents centred around doubts about George Osbourne’s treatment of the deficit, with many businesses believing he is not doing enough.
However, the survey also showed that more businesses were turning to alternative finance options. Crowd funding was one popular choice that businesses were using to boost growth. With businesses still struggling with bank lending, it is options such as invoice finance and crowd funding that are supporting many SMEs through a tough lending environment.
There has also been a rise in export confidence, with many of those entrepreneurs who actively engage in exporting expecting their turnover to increase during 2013. However, this is not reflected across the wider business environment. Turnover expectations overall amongst exporting and non-exporting businesses combined have fallen since the first survey.
Guy Rigby, head of entrepreneurs at Smith and Williamson, commented; ‘With most businesses unwilling or unsuited to raising traditional venture or growth capital, and with a scarcity of bank loans and overdrafts, there’s an increasing focus on the alternatives.”
If your business is worried about the coming months, then alternative finance could help your company.