* Nearly one in five (18%) of UK SMEs believe they have missed a business opportunity in the past year
* Nearly half (43%) of SME owners believe that it will be more challenging to get funding in the next year as a result of recent changes in the credit markets
UK SMEs are missing out on business opportunities totaling close to £29.4bn¹ due to a lack of funding.
A new study conducted for GE Capital has revealed that nearly one in five (18%) established SMEs across the UK have lost, on average, £822,000 of additional sales due to the lack of financial resources available to these businesses over the past year. This represents a two-fold increase on the number of SMEs who missed out on business opportunities due to a lack of funding in 2008 (9%).
According to the survey, the South East was the hardest hit region in the UK, with 28 per cent of SME owners stating that their business had lost out, while the building and construction industry was the worst hit sector, with one in four (25%) SME owners stating they had lost potential sales as a result of limited available funding.
John Jenkins, CEO, GE Capital said: "Despite a perceived shift in economic conditions, it is incredibly unfortunate to see the extent to which SMEs are missing out on business opportunities.. It is vital, over the forthcoming year, that they secure the right amount and type of funding early to avoid missing further opportunities. The continuing well-being of the UK economy depends on these SMEs achieving their goals and securing growth"
The findings, which are based on interviews with the owners and managers of 500 UK SMEs, have also shown that nearly half (43%) of all SME owners believe that it will be more challenging to get the funding that they need over the next twelve months. This is in contrast to less than a third (31%) who felt that gaining the necessary funds would be a challenge in 2008. One in four (25%) fear that it will be significantly more challenging to access the funding they need over the next year.
The survey also shows that nearly one in three (31%) of the businesses questioned said that their financial advisers could do more to help them improve their chances of getting the funding they need. One in six (15%) said they would like more advice on the advantages and disadvantages of different types of funding, while around one in seven (14%) said they wanted advice on what to look for in choosing an appropriate funding structure for their business. Nearly one in eight SME owners (12%) stated that they would like help in choosing the right provider to access funds.
Based on the survey, firms in Greater London were found to be the most content with the funding advice they receive, with over three quarters (78%) saying that they did not need any additional help from their advisers. By way of contrast, less than two-thirds (64%) of SMEs in Scotland said they were happy with the advice they receive, while just over half (55%) in the leisure and catering industry felt that they needed no additional support.
John Jenkins added: "Considering the magnitude of the opportunities that UK SMEs could lose our on due to a lack of funding, it is more important than ever that businesses and their advisers are aware of and consider alternative forms of finance, such as invoice discounting and asset based lending, as a means of securing the right funding at the right cost."
Angela Goulding
GE Capital
[email protected]
0870-458-8421
Michael Goodbody
GE Capital EMEA
[email protected]
+44-207-302-6269
+44-7899-808-239