· 39% of start-ups seek under £10K of investment to become profitable
· Over two thirds of all start-ups look for under £100K initially
· Just 6% require over £500K
· Only 3% look for £1.5m or more
· Almost one fifth do not know how much investment they require at the outset
We have surveyed over 800 potential entrepreneurs and small businesses owners over the course of 2008, investigating their standing and attitudes in a number of key areas including: finance, market research, sales and marketing and business exploitation.
Funding is clearly a vital area, especially in the current economic climate. It is interesting to see these results show that the majority of businesses believe they require relatively small levels of investment at the outset. This may lead them towards personal savings, friends and family or possibly business angels. What is also interesting is that a high proportion do not yet know what funding they need – an issue they will need to address as soon as possible if they are to keep in control of their budgets and see their business succeed.Permjot Valia, business angel and member of the British Business Angel Association commented, “This survey does put things into perspective. The engine for Entrepreneurial Britain is “friends and family” with almost 40% of all start-ups looking for less than £10,000. It also demonstrates how funding for start ups will get harder over the next few years. Faced with lower house prices, people may feel less able to offer financial help to start-ups. Whilst the businesses looking for over £500k grab all the headlines, they represent less than 10% of start-ups. More needs to be done to help start-ups requiring less than £10,000. The Small Firm Loan Guarantee could so easily help if it were made easier to access.”
A full set of i2m’s research results will be published later this year. For more details contact me at d.thomas@inventya.com.
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