Number of small businesses accessing finance rises, shows report
The number of small businesses obtaining finance for development has risen in the past year, according to figures from Albion Ventures’ third Albion Growth report. The report showed that 44% of small businesses were approved for development finance in 2015, compared to 27% in 2014.
Out of the 1,000 small and medium-sized businesses studied for the survey, research showed that 29% were seeking finance for new equipment, 24% for the development of new products and 17% for research and development.
Lack of access
The study also showed that long-term finance has grown in popularity from 6% in 2013 to 34% in 2015. One in five of the survey’s respondents stated that the lack of access to finance had affected them, with the ones most likely to struggle to obtain finance being young entrepreneurs aged under 35.
The survey also studied different sectors, with results showing that 43% of manufacturing companies are most likely to want access to equity finance, followed by IT & Telecoms firms and the construction industry at 19%.
Albion Ventures managing director, Patrick Reeve, commented on the report, stating that it is a “hugely optimistic” climate and that “equity culture” is becoming a new trend.
“It is a hugely optimistic climate, and we should be encouraged by the revelation that such a high percentage of firms are looking to raise finance to grow and innovate,” he said.
“There is also a clear trend toward non-bank lending such as the popularity of bank loans and overdrafts have continued to fall. What is particularly welcome is the emergence of the ‘Dragon’s Den generation’ – those under 35 who embrace an equity culture.”