Tim Vine, Head of European Trade Credit at Dun & Bradstreet said: “Small businesses make up 99% of all private companies and are ‘the engine’ behind the UK economy. Funding and investment is critical to future growth and prosperity and our recent findings found 67% of small businesses say the availability of finance has a significant impact on their success.
“Amidst the current economic and political uncertainty, smaller businesses may be more wary of taking on debt even if it is needed for growth. However, when deciding whether to apply for credit, it’s important that businesses are aware of the full range of funding options. Businesses are no longer restricted to traditional bank loans, with alternative sources of funding such as accelerators, crowdfunding, micro-loans and peer-to-peer lending becoming more widely available. Our research indicated that 15% of small businesses are opting to enter competitions to win finance, many of which the government support, and 12% are using crowdfunding.
“But money alone is not enough and although there are alternative options available, small businesses need to feel supported on a wider scale. This support can include advice, mentorship, development programmes, networking, sharing of resources and co-working spaces. All of which will be crucial for small businesses looking to grow and succeed in the UK economy, and beyond.”