One of the most significant side-effects of the current lack of funding for UK based SMEs is the adverse effects on job creation – 500,000 new jobs could be created with improved access to funding.
In fact, 30% of small businesses have been forced to lay off staff due to a lack of funding and the economic crisis.
A recent survey by Funding Circle showed that SMEs are poised for growth but are being hindered by a lack of finance. 33% of those surveyed would increase staff numbers if they could obtain the required finance.
Furthermore, the study revealed concerns regarding access to bank loans.
- 56% said the recent banking scandals have resulted in the banks losing their trust
- 24% said there is nothing the banks can do to regain their trust
- 34% believe the banks don’t want to lend
- 37% need access to fast finance and believe the banks are too slow
- 31% believe banks are too expensive
- 15% have had to adjust their plans for growth as a result of a lack of finance