UK Small Business Impacted By Borrowing
UK small business community hampered by lack of funding.
Running a small business is rarely simple. Margins can be tight, long hours are often required, and it can be difficult to remain on top of relevant industry trends. However, according to a recent piece of research published by Liberis, the biggest threat to small businesses in the UK is seemingly a lack of education when it comes to understanding how to efficiently manage finances.
For any business to grow and subsequently succeed, funding is required. And, while that fact is something that all entrepreneurs and business owners acknowledge, where to attain funding, and being fully aware of how much money will be required, is not quite as intuitive.
When interviewed for the Liberis study, 62% of businesses said that they required funding so as to grow and expand operations, almost as many – 57% – admitted they didn’t know where such funding would come from, with more than half – 53% – saying they weren’t able to denote a set amount of money that they were looking for.
What is perhaps most concerning, especially given the report’s findings about lack of financial education amongst the UK’s SMEs, is that almost one in four business owners – 22% – said they need to find means of getting funding just to continue operating as normal.
Small businesses are the backbone of the UK economy, and ensuring the long-term survival of SMEs is absolutely essential. Some of the impetus must be on the government to provide adequate training and support, but big businesses and banks also have a role to play. NatWest – with its dedicated Business Matters website – is one example of help being offered.
Speaking in the wake of the report, Rob Straathof, CEO at Liberis, said: “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.”