Small and medium enterprises (SMEs) are the backbone of the UK economy. They account for 99% of private sector businesses in the UK and contribute over a third of our gross domestic product (GDP). However, despite their importance to the UK economy, many small businesses struggle to access finance - with just 6% of SMEs accessing investment funding in 2017. This article explores how important funding is for small businesses, what challenges they face when trying to access it and how they can overcome these challenges.
· Accessing finance is difficult
· Meeting regulatory requirements can be tricky, especially if you're dealing with a lot of government contracts or if you're selling to the public sector
· Finding the right people to work for you is tough since there are so few qualified candidates out there (and they usually don't want to leave their current jobs)
· Finding the right premises isn't easy either—finding an office space that fits your needs and budget may take a lot of time and effort
· Equipment can also be difficult to find—finding equipment that's up-to-date and efficient but still affordable can be very challenging for businesses on a tight budget
There are many different options available for SMEs that need funding in order to grow their business:
· Bank loans - Banks offer loans with terms ranging from 1 year up to 10 years, which can help you finance any aspect of your company’s operations or expansion plan. This option is the best if you want a fixed rate of interest over the course of the loan term. You may also be required to put down collateral like real estate or stocks in order for the bank to approve your loan application; this means they will have security over assets such as property until they receive repayment on their loaned money back with interest on top!
Small businesses are the backbone of the economy. They are responsible for 60% of private sector turnover, 30% of private sector employment, and over half of the private sector investment.
It’s no secret that small business owners face numerous financial challenges when trying to start and grow their businesses, but an often overlooked challenge is access to financing. In order for small businesses to thrive in today’s economy and create jobs, we need to ensure that they have access to finance.
For a small business to grow, it needs financing. Without capital, you can't expand your operations or take on new projects — and that could mean losing out on opportunities for growth and expansion.
On top of that, if you don't have enough cash flow coming in during certain periods (such as when you're waiting for invoices to be paid), it can be difficult to keep the lights on until your next sale.
When you're trying to grow a small business, it's important to have the right tools in place. If you're looking for financing, you might want to consider applying for a merchant cash advance (MCA). These loans are designed specifically for businesses that need quick funding, and they can be used for any purpose — whether it's expanding operations with new equipment or paying off debt from an existing loan.
The majority of SMEs are sole traders or partnerships.
Sole traders are individuals who run their own businesses, and this makes up around 86% of all UK businesses. Partnerships are businesses that are owned by two or more people, and these make up 14% of UK businesses.
The remaining 2% of UK businesses are owned by companies. This means that only a small proportion of the UK population is actually employed by a business.
High-growth business opportunities are important because they increase the likelihood of success, and can help attract funding. If you're looking for more funding, then high growth is a key factor to consider.
When talking about high-growth businesses, we're talking about businesses that have the potential to grow by 20% or more per annum over a period of three years or more. This puts them in an elite category among small businesses worldwide: only 10% of SMEs have this kind of potential!
SME Finance is critical to the growth of small businesses. It’s important that entrepreneurs have access to capital so they can take advantage of opportunities and expand their companies. By providing financing, banks can help them make key investments such as buying new equipment or hiring additional staff members.