According to the survey of 750 businesses by business utilities comparison site Make It Cheaper and the Centre for Economic and Business Research, 27% of entrepreneurs have had to turn to their friends and family for cash, while 26% have taken out an overdraft. A quarter say they’ve put it on their credit card, while 22% have taken out a bank loan and 13% have even had to remortgage their house. It doesn’t take a mathematical genius to realise that some will have had to go down more than one route.
According to the survey, 89% of small business owners see the UK as Indeed, the average amount of their own dosh which small business owners are in for is £20,400. Interestingly it is doctors and dentists who have raided their piggy banks to the greatest extent, with £120,000 being the average sum for these businesses. But then their costs are probably higher, you wouldn’t want your dentist to do that root canal filling with a worn out drill now, would you?
The survey has also come up with a rather natty Index, which attempts to predict what business’ biggest costs will be over the next year, based on historical figures. It predicts that transport costs will rise by 20.5%, energy bills will grow by 8.5%, and insurance premiums will go up by 7.1%. More, probably, if last night’s rioting is anything to go by.
To be fair, a certain amount of this is to be expected: entrepreneurs have always turned to alternative sources for finance. But it’s clear, too, that businesses are becoming increasingly reliant on these sources. Time for banks to have a rethink?