A survey of 1000UK small business owners has revealed that 65 percent of owners believe that they won’t be able to access funding from banks in 2012, instead having to rely on alternate sources for finance. Although 2011 saw new government and banking initiatives designed to help UK small businesses, with claims that banks will be prepared to increase lending to small businesses, 65 percent believe that alternate sources for investment will have to be sought in 2012.
A large number of young entrepreneurs aged 18 to 34 years old are also disillusioned with the banks, as almost 75 percent who took part in the survey by Huddlebuy, believe that the only option for funding in 2012 is to seek alternate sources. Worryingly, almost three quarters of the 35 to 54 year olds believe the same thing.
According to the joint managing director of Dews Motor Group, Craig Hamer, banks have reduced lending and the situation will get worse in the near future, which is why banks are the last port of call for UK small businesses looking for funding. CEO of Huddlebuy.co.uk, Saurav Chopra said:
“Bank lending for UK small businesses has gone from bad to worse. The coalition government and banks talk a good game but talk is all it is. The reality is that businesses know they can no longer rely on banks. But at least entrepreneurs are fighting back to help fellow businesses find the finance they need.”
UK entrepreneurs have launched a number of services which are designed to help small businesses obtain the funding they need.
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