Half of British business owners do not know the best options for securing financing or other funding, according to new research.
A poll commissioned by business launchpad platform Start My Business found that 50% overall did not know the best sources of finance, with younger business owners most “out of the loop”.
It revealed that 57% of business owners under the age of 35 did not know where to turn when it came to acquiring external business finance or funding.
The poll of 500 CEOs and decision makers, carried out by research company Censuswide, revealed that 61% of all owners surveyed did not know how to access finance options beyond traditional banks.
This figure was significantly higher among larger companies with over 50 employees: two-thirds of owners felt unsure about how to access finance options beyond traditional methods.
The surveyed business owners expressed a desire to better understand financial processes: 49% said they wanted to learn how to manage their cash flow more effectively, and 38% said tracking the financial health of their business was the area they wanted to upskill most in the immediate future.
The research also revealed that the most popular service used by owners to track the financial position of their business was bank account apps, relied on by 55%.
In tandem with banking apps, half of CEOs stated that they relied on accounting software, while 37% incorporated Excel spreadsheets into their financial tracking process.
Shoaib Aslam, founder and CEO of Start My Business, said: “Understanding your options when it comes to business finance is vital to any successful start-up or established business, and it is disappointing that there is such a lack of guidance and support to help business owners realise their options.
“With small business in particular so important to the economy, the government should be front and centre in highlighting business finance options, especially amidst the cost-of-living crisis.
“Part of the issue for business owners is that all of the tools they need are spread between banking apps, accounting software and a whole host of other services required for a successful business, adding to the complication of the business finance process.
“Services like Start My Business are essential for streamlining a plethora of tools and advice, helping to simplify and provide guidance on core business components, such as business finance, pointing business owners to their best options in order to help fuel their company’s growth.”