Business funding – just what is the issue limiting funding for business in the UK? Do banks not want to lend? Or, do businesses not want to borrow? That’s the long running debate that’s run and run throughout the British media, but, whatever the case might have been, new research by Experian shows there are plenty of business investment opportunities now.
Despite ongoing economic difficulties, British small businesses continue to demonstrate high levels of growth and present ripe opportunities for sound business loans. That is, at least, according to the latest research carried out by Experian for the Business Growth Fund (BGF).
The survey found that there are currently 4,000 mid-sized businesses in the UK who can boast turnovers of between £2.5m and 3100m and who have grown by at least 33 per cent in the last three years.
Investing in one of these 4,000 small businesses via a small business loan would surely represent a sound business investment, as well as helping to get the British economy back on track, but there’s a whole raft of opportunities beyond that.
These 4,000 are merely the independent businesses classified by the report as ‘high growth’. In all, there are 25,533 UK companies with turnovers of £2.5m – £100m and whilst not all of them are positioned for expansion, many are established businesses with a clear route to exploit additional business funding.
Stephen Welton, CEO of BGF, commented:
“This data highlights that despite challenging market conditions, there is a steady base of UK (small businesses) and fast growing UK companies that continue to thrive across the UK and that operate in diverse industry sectors. It demonstrates the resilience of the group and the underlying quality of UK entrepreneurship. This is good news for the overall UK economy as these companies play a significant role in job creation and innovation and are a critical part of the economic recovery. “
It is Welton’s job to use the Business Growth Fund to assist some of these companies but it’s becoming increasingly clear that private sector help is required.
The banks are unable to meet the needs of UK businesses and government funding initiatives are, at best, a drop in the ocean. We were glad to hear that David Cameron has asked the Chancellor what more can be done to support British business and welcome his promise to do “even more” to promote growth.
Photo used under creative commons license