No sign of an easing in credit conditions for SMEs, 22% saying bank funding has got more difficult
There is no sign of an easing in credit conditions for SMEs, with 22% saying bank funding has got more difficult to access (up from 19% a year ago).
The new Hiscox “DNA of an Entrepreneur” report shows.
Key findings include:
– One in six respondents (17%) now use their credit card to help fund their business.
– One in ten is contemplating turning to crowd sourcing and peer-to-peer lending sites in the coming year.
– Around one in six (17%) firms with a turnover in excess of £10m is contemplating raising finance via crowd funding/peer-to-peer – four times as many as last year (4%).
– For the first time, the study reveals that 40% of those who have set up their business within the past four years are relying on income from outside sources.
– Only 7% say credit has become easier, the same as last year.
– UK stat: In the UK, those finding bank funding more difficult to access was 16% (up from 13% in 2015). In terms of technology:
– Cyber-crime is a major issue for SMEs, with 11% (10% in the UK) saying they have suffered a cyber-attack.
– Starkly, 8% do not even know whether they have been targeted by cyber criminals.
– Coupled with this, two-thirds (66%) of small business owners and managers report growth in revenue in the past year – and technology, media and telecoms companies are one of three sectors leading this growth trend (71% of companies report revenue growth) along with financial services (76%) and food/drink/travel/leisure at 72%.
Following an in-depth study of more than 4,000 SMEs (i.e. under 50 staff) across the UK, US, France, Germany, Spain and the Netherlands, the new report reveals some fascinating statistics about SME’s:
Other highlights of this year’s report show that:
– We are seeing a third year of solid growth for small businesses but widespread dissatisfaction with governments over what is seen as a lack of support for SMEs. When asked if the government is supportive of entrepreneurs, UK SMEs figures are down by 10% (from 45% to 35%) in the past year alone and the report highlights widespread unease over SME-focused government policies.
– More than half of UK small firms (51%) say Brexit will have no impact on their business.
– Despite post-Brexit uncertainty, two-thirds of small businesses have increased revenue in the past year (64% of UK respondents reported increased revenue).
– Political instability is a key concern among SMEs. More than a third of respondents (36%) say political instability is a potential issue for their business in the UK this figure was 22%.
– Recruitment is down but hiring intentions are positive, the proportion of firms taking on new staff has fallen (from 21% to 13%), but for the year ahead 21% are planning to increase headcount.
– The ‘bigger the better’ effect – the report reveals a widening gulf between the biggest companies and the smallest.
For the full report click here