More than half (52%) of UK SME owners have business ambitions they feel they are unable to fund, alternative finance provider Nucleus Commercial Finance has revealed.
Business owners in the capital are struggling the most to match their ambitions, with over three-fifths (61%) of London SMEs unable to access funds.
Chirag Shah, chief executive, Nucleus Commercial Finance comments: “Although it’s great to see an increase in both profit and revenue for small businesses, it’s clear that funding challenges still remain.
“If business owners cannot access the funds they need to achieve their strategic goals, we could see a significant impact on the UK’s economy if SMEs are held back.
“With SMEs accounting for 99% of all UK businesses, the alternative finance industry has a significant role to play in helping businesses succeed.
“Particularly as high street banks become more reluctant to lend, we need to better educate small businesses on the other solutions out there.
“The alternative finance industry offers a more flexible and personalised approach to lending, meaning they can help business owners who otherwise thought they had no available option.”
Despite SME owners reporting that revenue and profit increased by 10% and 8% over the previous year respectively, businesses are reportedly struggling to achieve their strategic goals.
The biggest goals are increasing brand, marketing or online presence (19%), expanding across the UK (17%), increasing staff (14%) and launching a new product or service (13%).