Small businesses are planning growth in 2015 but many are still unaware of the finance options available to them, research by the British Business Bank has revealed.
The research into more than 1,000 firms found that 46% are planning to expand their business over the next 12 months.
The main reasons for obtaining finance were:
- buying fixed assets (43%)
- increasing working capital (33%)
- expansion (11%).
There was a lack of awareness among businesses about sources of finance, despite 68% of firms saying they were confident about their ability to obtain funding. Although 85% knew about lease or hire purchase arrangements, the research found:
- 36% were aware of angel investors
- 55% knew about venture capital but only a fifth knew of a specific supplier
- 35% knew about peer-to-peer lending
- 32% were aware of crowdfunding opportunities.
Keith Morgan, chief executive of the British Business Bank, said:
“It is clear from our research that there is increasing confidence among UK small businesses and an appetite for growth. The challenge now is to connect the emerging demand for finance with the new forms of funding that are becoming available.
“That is why the British Business Bank is working to encourage innovation, promote diversity and share information, to develop a more broadly based and accessible lending market for smaller businesses.”