Brits are facing a brick wall when it comes to setting up on their own. Of those who are eager to go it alone, over two thirds (68%) think the biggest barrier would be the challenge to secure funding, and over a third (37%) wouldn’t know where to turn if a bank turned them down, while 40% are put off by the lack of information available to them on how best to set up a business. They’re not alone in their confusion, a shocking 79% of current SME’s are not aware of the funding options available to them and 21% believe lack of funding was their biggest barrier when setting up on their own.
A staggering 69% of aspiring entrepreneurs want to start their own business so they can be their own boss, while over a third (38%) are keen for a new venture, and 37% have some great ideas to pursue. Almost a third (30%) were fed up of being in a job they didn’t enjoy and 29% thought that starting a small business would be a good way to contribute to boosting the UK economy.
The most popular industry to start a business is technology and IT (12%), followed by fashion and retail (9%), and catering and hospitality (8%). Almost a fifth of aspiring male entrepreneurs dream of starting a tech/ IT based business, whereas for budding Karen Brady’s, a fashion venture is the more popular choice for 11% of women.
James Benamor, founder and CEO of Amigo Loans comments: “There is a huge amount of talent and ambition in the UK but budding entrepreneurs are being forced to put their dreams on hold as they’re held back by banks that still won’t give them a chance. The stress and sometimes humiliation of being turned down by their bank is leading SMEs to give up on their business ventures all together, and a growing number are being forced down the payday route. People who want to start their own business need to be aware of the other options and alternative forms of credit available - whether that's through a guarantor loan, or a credit union.
“Amigo Loans gives aspiring entrepreneurs a real chance to start and build their business, rather than be turned down by a computerised credit scoring system that doesn’t take into account a business’s ambition and drive. Amigo's old-fashioned approach means entrepreneurs are being given the chance they deserve. Lending is based on trust, personal endorsement and one-to-one interviews offering loans using friends and family as guarantors. An Amigo loan gives borrowers the opportunity to build or rebuild their credit score, as opposed to destroying it through the use of payday loans.”
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