Company Formation Sector Reluctant to Apply for finance

Throughout the recession, the majority of feedback from the small business and company formation sector, has been that limited access to finance is the main challenge faced by enterprise in the current economic climate

However, a recent report conducted by the Forum of Private Enterprise, claims that in a survey of over five hundred small business owners, over sixty per cent have been reluctant to borrow money off banks in the last quarter.

Laura Innes, spokesperson for the FPE, comments: “ Largely the perception of SME’s throughout the recession has been that of a sector desperate for additional Finance and while that may be true for a proportion of small businesses, many still feel anxious and the thought of borrowing from banks and are now looking into different routes of funding.