One of the main challenges many new companies face, is securing the finance needed to get a new company off the ground. Form many small business owners the lack of available finance has been one of the biggest challenges of the recession. However, according to a report out today, many companies expect there will be finance available.
Management consultancy firm Smith & Hoffman, asked over two thousand small business owners if they felt that there will be more finance options open to them this year. An overwhelming 45% said that they did while over 32% said that they felt more confident approaching banks now than they did last year.
Michael Francis, enterprise director at Smith & Hoffman comments: ‘The findings of this report confirm that the SME sector, are feeling more confident about 2010 as the UK’s economy takes its first steps out of the recession. However, it is important for small business owners to recognize that while there may be more finance available to fund growth, consumers are still cautious and therefore re-investment in any business must be well planned and strategically executed.”
Kieran O’Neil, founder of online retail company, ‘Clothing Direct’, says: “When the recession began, any plans we had to grow the company were put on hold, and while business has picked up and there does seem to be more finance available, for us, 2010 will be about consolidating the business and maintaining a healthy cash flow.”