Lack of Funding Hinders Small Business Expansion and Growth

  • Over one in five SMEs struggled to access external finance
  • 27% of SMEs had to pause or stop business activities due to lack of financing
  • Manufacturing, finance and accounting, retail, IT and telecoms sectors most affected
  • SMEs predict growth in recruitment, new product development, and market expansion over the next 12 months
  • 34% of SMEs are concerned about their business growth in the next year
  • Appropriate external finance could lead to a 17% average growth for small businesses
  • Government-backed loan scheme with traditional and alternative lenders is needed
  • SMEs should review capital structures and consider fixed term loans

New research by Manx Financial Group reveals that over 20% of SMEs couldn’t access external finance in the past two years, with 27% halting business activities due to financial constraints. Manufacturing, finance and accounting, retail, IT, and telecoms sectors were hit hardest. Despite predicting growth in recruitment, product development, and market expansion, 34% fear stagnation in the next year. If SMEs obtain suitable financing, they could grow by 17%. A government-backed loan scheme with traditional and alternative lenders is crucial. CEO Douglas Grant suggests reviewing capital structures and fixed term loans.

Factuality Level: 8
Factuality Justification: The article provides relevant information about the challenges faced by SMEs in accessing external finance, the impact on their business growth and expansion, and offers suggestions from the CEO of Manx Financial Group to address these issues. It is based on research commissioned by the company and includes statistics and quotes from the CEO. However, it could have provided more context about the methodology used for the research and a broader perspective on the UK economy’s overall situation.
Noise Level: 4
Noise Justification: The article provides relevant information about the challenges faced by SMEs in accessing external finance and its impact on their growth. It also offers insights from a CEO’s perspective and suggests potential solutions. However, it could benefit from more data or examples to support the claims and explore the consequences of these issues on the economy and society.
Financial Relevance: Yes
Financial Markets Impacted: SMEs, manufacturing, finance and accounting, retail, IT and telecoms sectors
Financial Rating Justification: The article discusses the difficulties faced by SMEs in accessing external finance and its impact on their growth and expansion plans. It also mentions the potential growth of these businesses if they can secure appropriate financing.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk