A new study has shown that more than half of the UK’s small and medium-sized enterprises (SMEs) struggle to access the investment that they require to expand.
The research, conducted by alternative finance provider Liberis, also found that 57 per cent of SMEs were unclear on where they could obtain necessary funding, while 53 per cent did not have a set amount in mind when seeking finance.
Worryingly, the study also showed that 22 per cent of businesses required funding to maintain ‘business as usual’, while five per cent needed funding to survive in their first year of trading.
While a large proportion of businesses were unsure of how and where to access funding, around 10 per cent of businesses said they intended to use peer-to-peer finance and/or open crowdfunding as a means for funding in the next two years.
Rob Straathof, CEO at Liberis, said: “These findings have opened our eyes to a lack of confidence and awareness among SMEs in how to correctly secure the funding they so desperately need. 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, but by ensuring they have the correct financial understanding, we can help secure and strengthen their livelihood; fast-tracking their ambitions.”
With the UK set to leave the EU under Brexit, there are growing concerns that many SMEs may be holding off on big investments to ensure they aren’t caught out by another recession or period of slow growth.