UK small businesses unsure of growth strategies
ONE third of small business owners want to grow their enterprise but are unsure how to do so, according to new research.
A survey commissioned by the British Business Bank found that many small businesses are unaware of the alternative finance options available.
Only five per cent of businesses polled said they have considered angel investment and just seven per cent have considered crowdfunding.
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The British Business Bank survey also found that older business owners are significantly less likely to be aware of or to have used alternative growth finance options than their younger counterparts.
One in five millennials have considered crowdfunding compared to just three per cent of over-35s.
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However, business confidence remains high amongst those surveyed, with more than half of business owners surveyed saying they expect to increase their income or turnover in the next financial year.
“Getting investment for your business does not have to be as scary as going into the Dragons’ Den,” said Piers Linney, non-executive director at British Business Bank.
“There are plenty of ways to get finance and access support – the challenge is knowing where to look, making the time to find out about them and getting investor ready.”
In order to help small businesses better understand the finance options available, the British Business Bank has launched the Finance Hub. This is an interactive website providing independent information on finance options for scale-up, high growth and potential high growth businesses.
“The financial landscape can be complex and confusing for smaller businesses trying to finance their growth ambitions,” said Keith Morgan, chief executive of British Business Bank.
“Our Finance Hub provides independent and impartial information about the finance options for high-growth smaller businesses.
“It’s Finance Finder tool helps these small, high-growth businesses understand their finance choices and identify the right finance for them to grow and succeed.”
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