500,000 new UK small business jobs being stifled by lack of funding

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

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