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A fifth of businesses held back by lack of awareness around growth funding options

While growth optimism remains high among UK SMEs, a significant number of businesses are unaware of the steps required to support this growth, according to new research by independent asset manager, BOOST&Co.

While growth optimism remains high among UK SMEs, a significant number of businesses are unaware of the steps required to support this growth, according to new research by independent asset manager, BOOST&Co.

The 2022 Geared for Growth report found that 70.2% of businesses intend to access external funding to support the growth of their business in the next 12 months. However, many of these are unsure of how to obtain this funding, with nearly a fifth of business leaders (16.6%) reporting a lack of awareness of the options available to help their businesses grow.
 
The nationally representative survey of 500 UK business leaders also revealed that 21.6% of firms believe access to funding is a significant roadblock to achieving growth. This was the second biggest barrier to growth after the ongoing impact of the Covid-19 pandemic.
 
The research revealed an evident knowledge gap when it comes to accessing support for business growth. With 10.4% of UK smaller business leaders claiming to lack clarity around which growth strategies would be most impactful for their business, it is clear that more needs to be done to raise awareness around growth strategies.
 
Almost a third (31.4%) of businesses also believe that there is a lack of understanding in their organisation around the funding process. This lack of clarity could be restricting growth opportunities for SMEs, with the UK funding marketing providing an array of benefits to a business of any size, sector or location. Nearly 10% of funding applications in the past two years were rejected by a traditional bank or another lender, suggesting that SMEs need greater support during the funding application process.
 
Recent research by CBInsights revealed the common reasons that many SMEs fail, with 38% reporting failure from running out of cash and 15% citing price and costing issues as their downfall. Therefore, it is clear that funding is often crucial to the survival of SMEs and the process of securing this funding needs to be as smooth as possible.

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