Research from borro’s Enterprise Ladder Report reveals that, on average, micro businesses and SMEs require £94,000 start-up capital to get their business going.
The study also found that since launching their businesses, more than a third of SME owners (38%) have had to invest additional funds from their own savings into the business, and one in 10 have taken out short-term loans in the last 12 months to assist with business cashflow.
Those businesses that have needed to take out a loan have had a higher average start-up cost of £127,992, of which they have borrowed £84,500.
The last five years have seen the nation’s small business owners really struggle to keep their heads above water; 46% of all small business owners have seriously considered either selling their business or closing it down completely, so it is no surprise that business owners have had to take out loans or dip into their own pockets.
Paul Aitken, CEO of borro, commented: “It is a real worry to see that the future outlook and struggle that SMEs are going through is so grim. For those that take the time and effort to start up a business it is only fair that they are rewarded.”