SMEs need more access to finance, according to research
Research from Santander Corporate & Commercial has shown SMEs need more access to finance.
The research found that around 50 per cent of high-growth SME owners in the UK have been unable to expand their business as a result of problems with accessing finance. This is compared to 36 per cent of businesses as a whole.
50 per cent believe access to dedicated funding to boost business growth is very important after the triggering of Article 50.
Over 35 per cent of businesses have been unable to take advantage of growth opportunities such as expanding their business overseas or developing new products as a result of a lack of funding.
The research highlighted the need for more funding options for businesses. A third of business owners were turned down for a business loan at least once over the past three years and 12 per cent were refused access to finance more than once.
High-growth businesses also revealed their priorities in the research. 49 per cent plan to expand marketing initiatives, 35 per cent planning to increase their headcount, and 32 per cent intend to invest in research and development.
Santander’s research comes after the Federation of Small Businesses (FSB) national chairman Mike Cherry called for more funding support for small businesses after Brexit.
“The European Investment Fund has provided almost £500m annually to support smaller British firms aspiring to grow and scale-up. More than half of FSB members believe EU funding for access to finance should be prioritised and maintained post-Brexit. It is critical that this level of investment activity is replicated after the UK leaves the EU,” he said.