Access to finance: Funding is ‘biggest barrier’ for entrepreneurs
ENTREPRENEURS in the North believe that access to finance is the biggest barrier to setting up a new company, according to a survey by EY.
The accountancy group polled 50 individuals and 55% described funding as a key hurdle to launching a business.
Some 53% cited fear of failure while 37% described uncertainty of income as a major barrier.
Only 6% thought that bad market conditions could hold back entrepreneurs, while just 10% cited the possibility of going bankrupt as a barrier.
EY said nearly all of those surveyed have well-established businesses with 81% having run their companies for at least a decade.
Simon Allport, North West Senior Partner at EY, said: “Matching funding to business growth plans remains a key area of concern for ambitious entrepreneurs, not least as rapid growth tends to absorb cash. Business leaders that develop controls over cash and cash forecasting as they grow are able to plan early for fund raising and are more likely to attract investors.”
Some 37% of respondents said they would use retained profits to grow their businesses, while just over a fifth would look to bank funding, while 12% would consider private equity investment.
